Every year, the the Federated Employees’ Mutual Assurance Company (FEM) awards merit rebates to those of its 5 000 members with a favourable track record of upholding good health and safety standards for their employees.

During 2018, a sizeable R290 million was re-invested in the policyholders by way of rebates on their premiums. The incentive scheme was established by FEM to foster the proactive protection of workers from avoidable accidents, injuries and fatalities.

“The merit rebate system rewards policyholders in order to instil a culture of prevention rather than remedy,” comments CEO of FEM, Ndivhuwo Manyonga.

“At the discretion of FEM’s board, and in accordance with the company’s articles of association, a member may be eligible for a merit rebate on any assessment paid by the employer for that period.

“The ratio of claims-costs to premiums-paid determines the loss ratio. A favourable loss ratio could result in a merit rebate and the converse could lead to a loading or increase in the standard rate,” Manyonga explains.

During the 81 years that FEM has served the construction industry’s assurance needs, members have come to embrace the rebate incentive, while mitigating the possibility of a loading.

Rudi van Deventer, COO at FEM, notes that over the years the effect has been that the number of accidents among FEM’s policyholders has been reduced from eight to only 2,5 employees per 100 being injured.

The 2018 rebate season was preceded by the FEM Annual Health and Safety Awards. The recipient of the coveted platinum “Special” award was Amanzi Abantu, with the Gold award going to Shula Construction CC, the Silver award to Robert Skinner Construction and the Bronze to Cladcon CC.

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