Objectives

To procure a qualified short-term insurance brokerage service provider for a three-month period, ensuring comprehensive risk management, optimal premium pricing, and efficient claims administration for the municipality's operational and asset portfolio.

Scope

The successful bidder will broker and place insurance coverage across multiple municipal risk categories. The scope includes property insurance for standard constructed buildings, contents, machinery, goods in transit, office contents, accounts receivable, business all risks, theft, glass, money, fidelity guarantee, accidental damage, and electronic equipment. Motor fleet coverage extends to 35 vehicles. Liability coverage encompasses public liability, employers' liability, motor third-party liability, and SASRIA. Additional provisions include a twelve-month business interruption indemnity period, claims preparation cost extensions, reasonable precaution allowances, and escalation clauses for a three-month contract term.

Technical Requirements

• Bidders must submit a structured pricing schedule calculating premiums for three consecutive months, applying a fixed escalation percentage to months two and three.
• All excess or deductible amounts must be explicitly stated and remain firm for the entire contract duration.
• Mandatory documentation includes a current Central Supplier Database registration report, valid tax compliance PIN, FSCA licence or certificate, professional indemnity cover, and a fully completed declaration of interest form.
• Evaluation requires a minimum 80% functionality score to advance to price assessment. Only direct appointment letters from government or private entities will be accepted; subcontracting references are excluded.
• Bidders must provide a detailed claims methodology and procedure, accompanied by at least two sample claim forms for different asset classes.
• Quoted prices must remain valid for fourteen days, with payment terms set at thirty days following invoice receipt.
• Bids will be evaluated using an 80/20 preference point system (price versus specific developmental goals) in accordance with prevailing procurement legislation.

Skills Requirements

• Account Executive/Manager: Minimum ten years of experience in the insurance industry, supported by a certified NQF Level 5 or higher short-term insurance qualification.
• Claims Advisors (Two Positions): Each candidate must have at least two years of relevant industry experience and hold a valid Regulatory Examination Certificate.
• Bidders must outline a concrete skills transfer strategy to develop local municipal personnel throughout the contract period.

Explanation of Key Terms

• SASRIA: South African Special Risks Insurance Association coverage that protects against financial losses caused by riots, strikes, civil commotion, and terrorism.
• FSCA: Financial Sector Conduct Authority, the regulatory body responsible for overseeing market conduct and licensing of financial service providers in South Africa.
• NQF Level 5: An intermediate tertiary qualification within the National Qualifications Framework, typically representing a diploma or advanced vocational certificate.
• PPPFA 2022: The Preferential Procurement Policy Framework Act, which governs public procurement scoring and mandates the 80/20 split between price competitiveness and socio-economic development goals.