Sanlam Personal Loans (Pty) Ltd

Personal Protection Plan Policy

COVERING LIFE, DISABILITY, DREAD DISEASE AND

RETRENCHMENT BENEFITS

Underwritten by

Channel Life Limited

(Reg. No. 1969/012487/06))
A licenced Financial Services Provider

In exchange for receipt of the premium stated in the Loan Agreement on the due date, we agree to indemnify you
against the loss as defined occurring during the Period of Insurance for which we receive and accept your
premium, subject to the terms, conditions and exceptions contained in this policy or in any subsequent
endorsement to it.

This policy, as amended from time to time, including policy schedules, declarations and any voice-logged
conversations pertaining to this policy shall form the basis of this insurance contract.

In the event of any conflict between the provisions of this policy and that of any other documents as mentioned
above, the provisions of this policy shall prevail.

Signed for and on behalf of

CHANNEL LIFE LIMITED

Edition Date: 1 November 2012

A. DEFINITIONS

• You, your
The person or entity referred to as the Consumer in the Loan Agreement.

• We, us, our, ourselves

Channel Life Limited
(Reg. No. 1969/012487/08)
(FSP No. 19243)

• Insured
An Eligible Person who has been accepted by us and has paid for life insurance and has entered into a
valid Loan Agreement with Sanlam Personal Loans (Pty) Limited.

• Credit Provider
Sanlam Personal Loans (Pty) Ltd. (Reg. No. 2001/016316/07)

• Administrators
Direct Axis (S.A.) (Pty) Limited (Reg. No. 1995/006077/07)

• Claims Administrators
Channel Life Limited (Reg. No. 1969/012487/08) (FSP No. 19243)

• Loan Agreement
Any valid personal loan agreement Between You and the Credit Provider that meets all the criteria for credit
agreements as set out in section 8 of The Act. Such agreement covers any additional loan amount that may
be paid out subsequently to the original loan amount by way of a change to the agreement.

• Eligible Person
Any person who has entered into a Loan Agreement at the date of application for this insurance.

• Beneficiary
You or your nominee/s.

• Commencement of Insurance
The date on which the original loan amount advanced in terms of the Loan Agreement is credited to the
bank account provided to the Credit Provider by the Insured.

• Expiry of Insurance
The date on which the final repayment instalment in terms of the Loan Agreement is paid by you or on
termination of the Loan Agreement in terms of sections 122 or 123 of the Act, whichever is the earlier.

• Period of Insurance
The number of months, including part months, from the Commencement of Insurance to the date on which
the final instalment is paid by you or on termination of the Loan Agreement in terms of sections 122 or 123
of the Act, whichever is the earlier.

• Statutory Early Settlement figure

The payment due by you which would liquidate your obligation to the Credit Provider in terms of the Loan
Agreement inclusive of the normal early settlement penalties but excluding any additional debits, arrear
instalments or interest and/or finance charges thereon.

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• Temporary Disability
Your Medically Certified total temporary disability by a duly qualified and registered medical practitioner as a
result of sickness, injury or accident and which in our opinion renders you unable to pursue the normal
occupation or similar occupation in which you were gainfully employed immediately prior to such disability for a
period of at least 1 (one) month and has resulted in the total loss of your capacity to earn income for a
temporary period of 1 (one) month or more.

• Permanent Disability
Certification by a duly qualified and registered medical practitioner of your total disability as a result of
sickness, injury or accident which cannot be remedied or cured by any procedure or treatment and which in
our opinion renders you permanently unable to pursue the normal occupation or any other similar occupation
for which you may be suited by virtue of experience, training, education and ability and has resulted in the total
and permanent loss of your capacity to earn income.

• Self-employed
Being in business of any kind as a sole proprietor or in partnership or as a member of a close corporation or as
a shareholder of a private company, if the membership or shareholding is a controlling membership or
shareholding of the close corporation or the company, or if you are employed in a business owned by a
member of your family.

• Retrenchment
Your involuntary unemployment without income from any source as a direct result of new technology being
introduced by your employer, reorganisation by your employer or expectation of adverse conditions by your
employer and resulting in staff reductions.

• Loss of Income when Self-employed

Your involuntary loss of income which loss is caused by extraneous factors over which you have no control,
and which can be substantiated by books of account, and which excludes any loss of income due to your
voluntary or friendly sequestration, liquidation of the business or order of judicial management.

• Strike
The partial or complete concerted refusal to work, or the retardation or obstruction of work, by persons who
are or have been employed by the same employer or by different employers, for the purposes of remedying
a grievance or resolving a dispute in respect of any matter of mutual interest between employer and
employee, and every reference to work in this definition includes overtime work, whether it is voluntary or
compulsory.

• Protected Strike
A Strike as defined above that complies with the provisions of Chapter IV of the Labour Relations Act 66 of
1995.

• Medically Certified
1 (one) independent medical specialist must agree that you suffer from the condition as defined.

• Maximum Liability
The current amount of the outstanding liability due by you in terms of the Loan Agreement excluding interest
not yet earned and arrear finance charges and interest thereon.

• The Act
The National Credit Act 34 of 2005 (as amended).

B. DEFINED BENEFITS COVERED BY THIS POLICY

1. On your Death - an amount equal to the aggregate Statutory early settlement figures in terms of the Loan
Agreement being those that apply when the liability in terms of a Loan Agreement is settled in a single sum,
determined as at the date of death.

2. Permanent Disability - an amount equal to that which would have been payable in the event of your death.
No payment shall be made in the event of your death once payment has been made in terms of this clause.
This benefit is not applicable to pensioners or other persons not earning an income as an employee or as a
self-employed person at the time the onset of the disability.

3. Temporary Disability - whilst you remain temporarily disabled as defined, amounts equal to the repayment
instalments due in terms of the Loan Agreement, payable on the due dates of each instalment commencing on
the second due date following the date of the onset of the disability. No payments shall be made in respect of

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 any instalments which are in arrears and which fell due for payment prior to the onset of the disability, nor is
any interest payable in respect thereof. Payments shall cease should you again start earning an income. This
benefit is not applicable to pensioners or other persons not earning an income as an employee or as a self-
employed person at the time the onset of the disability.

4. Retrenchment – payment of 6 (six) monthly instalments as and when due subsequent to you becoming
unemployed as a result of retrenchment. This benefit is not applicable to pensioners or other persons not
earning an income as an employee.

5. Loss of Income when Self-employed - payment of 6 (six) monthly instalments as and when due
subsequent to your loss of income.

6. In the event of a Protected Strike – payment of the instalment on due date in terms of the Loan
Agreement, excluding the first instalment due immediately after the date of commencement of the Strike or
Protected Strike for a maximum period of 3 (three) months. This benefit is not applicable to persons who
are not employed as at the date of commencement of the Strike or Protected Strike.

7. Dread Disease - in the event of you suffering any of the following catastrophes, we will pay an amount
equal to the death benefit, provided that each of the following illnesses must be diagnosed by a registered
medical practitioner and must be supported by clinical, radiological, histological and laboratory evidence
acceptable to us:-

a) Heart attack - the death of a portion of the heart muscle (myocardium) as a result of inadequate blood
supply to the relevant area as evidenced by chest pains, ECG changes and cardiac enzyme elevation
proving myocardial injury.

b) Stroke - any cerebrovascular incident producing neurological sequelae lasting more than 24 (twenty-
four) hours and including infarction of brain tissue, haemorrhage and embolisation from an extracranial
source, supported by evidence of permanent neurological deficit.

c) Cancer - a disease manifested by the presence of a malignant tumour characterised by the

uncontrolled growth and spread of malignant cells, and the invasion of tissue, the growth of which
cannot be medically controlled. The term ‘cancer’ also includes Leukaemia and Hodgkin’s disease but
excludes stage 1 Hodgkin’s disease, tumours which are histologically described as pre-malignant or
showing early malignant change and all skin cancers (except invasive melanomas).

d) Surgery for coronary heart disease

i) the actual undergoing, as a recipient, of surgery due to coronary heart disease. This does not
include angioplasty and/or any intra-arterial procedures.

ii) heart transplantation or implantation of an artificial heart.

iii) The surgery must have been proven to be necessary by means of coronary angiography. All
other operations (e.g. Angioplasty) are specifically excluded.

e) Replacement of a heart valve - the replacement of one or more heart valves with artificial valves.
This includes the replacement of aortic, mitral, tricuspid, or pulmonary valves with artificial valves due
to stenosis or incompetence or a combination of these conditions.

f) Renal failure - end stage of renal failure presenting as chronic irreversible failure of both kidneys to
function as a result of which regular renal dialysis is instituted.

g) Organ transplant - human-to-human organ transplant, from a donor to you of one or more of the
following organs; kidney, heart, lung, pancreas, bone marrow.

h) Paraplegia - total and irreversible loss of use of both legs or both arms.

i) Loss of a limb - the total and irreversible loss of use of a limb.

j) Blindness - the total and permanent loss of all sight in both eyes.

k) Serious burns - third degree burns covering at least 20% of the body surface area.

l) Coma - a state of unconsciousness with no reaction to external stimuli or internal needs, persisting
continuously with the use of life support systems for a period of at least 96 hours and resulting in
permanent neurological deficit.

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MAXIMUM INDEMNITY

The policy will expire either at the end of the Period of Insurance or once payment of the statutory settlement in
terms of Death, Permanent Disability or Dread Disease has been made and no further benefits will be payable in
respect of any other claims nor for any other person who may have been covered by this policy.

C. GENERAL EXCLUSIONS

1. EXCLUSIONS APPLICABLE TO DEATH, DISABILITY AND DREAD DISEASE

We shall not be obliged to make payment in respect of any condition or event arising from:-

i) your illness, bodily injury, physical defect, ill-health or any other incident or condition which materially
contributed to the Death, Disability or Dread Disease claim against the policy, being related to:

a) A cardiovascular incident and/or disorder, of whatsoever nature, including but not limited to, a heart
attack, coronary artery surgery, and/or stroke;

b) Cancer, as previously defined;

c) Diabetes of whatever nature;

d) Spinal and/or back disorders, of whatever nature; and/or

e) Psychiatric and/or psychological disorders, including, but not limited to depression;

and which condition was diagnosed or treated or for which condition ongoing medication was prescribed,
and except where this policy replaces an existing policy on an earlier personal loan, should the condition
have existed at any time during the 12 (twelve) month period immediately prior to the Commencement of
Insurance, and continues or recurred during the 12 (twelve) month period immediately after the
Commencement of Insurance.

ii) the driving of any vehicle, by you whilst you are under the influence of intoxicating liquor or a drug having
a narcotic effect, or where the alcohol to blood ratio, calculated from using any bodily specimen taken
from any part of your body, and however determined, exceeds the statutory limit in force at such time.

iii) suicide, any attempted suicide or self-inflicted injury or illness, whether intended or not, or voluntary and
wilful exposure to danger or obvious risk of injury within 24 (twenty four) months from the
Commencement of Insurance.

iv) an intentional contravention of any criminal law, whether legislative or at common-law, by you, or by
anyone acting on your behalf or with your consent, or by any person claiming any benefit under the
policy.

v) intentional intake of excessive alcohol, drugs or narcotics unless administered by a member of the
medical profession - excluding for the treatment of drug abuse.

vi) involvement or participation in any war, invasion, acts of foreign enemy, hostilities (whether war be
declared or not) civil war, mutiny, rebellion, usurped power, riot, civil commotion or public disorder.

2. EXCLUSIONS APPLICABLE TO STRIKE, RETRENCHMENT AND/OR LOSS OF INCOME WHEN SELF-

EMPLOYED

No amount shall furthermore be payable:-

a) in the event of retrenchment, or loss of income when self-employed, commencing within the first 90
(ninety) days of the Commencement of Insurance.

b) if you are self-employed in any capacity and your loss of income is due to any reason other than as
defined in “Loss of Income when self-employed”.

c) in respect of unemployment occurring due to your resignation or the acceptance of voluntary

Retrenchment; the expiry of a non-renewable fixed term contract or a contract of temporary or casual
nature; any form of retirement or fair dismissal in terms of your contract of employment.

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 d) if you, your employer or the Credit Provider was aware that you were to be Retrenched, or to lose your
income when self-employed, prior to the date that the cover came into force.

e) if your loss of employment, or loss of income when self-employed, is due to fraud, dishonesty or any
illegal conduct on your part.

f) if your loss of employment, or loss of income when self-employed, is due to any sickness, disease,
injury or medical condition.

g) after your re-employment, or re-commencement of earning income when self-employed, the expiry of
the Period of Insurance or after 6 (six) monthly payments have been met, whichever occurs first.

h) in respect of retrenchment, or loss of income when self-employed, labour disturbance, unrest, political
activity, civil commotion, public disorder or riot.

i) if the claim has arisen from or is related to normal pregnancy, childbirth or abortion.

j) if the claim has arisen from any exclusions relating to Death, Disability or Dread Disease.

k) in respect of your participation in any Strike that is not protected.

l) in respect of your participation in any Protected Strike where you are not a member of the relevant
union relating to the industry in which you work.

D. PROVISIONS AND CONDITIONS

1. ELIGIBILITY LIMITATIONS

a) If a policy has been issued purporting to effect cover to any person who is not eligible for such
insurance, such insurance cover shall be void ab initio and the premiums shall be refundable.

b) The total amount that you may be insured for in terms of the Sanlam Personal Protection Plan may not
exceed the amount of the loan granted at the commencement of the insurance contract.

2. MEDICAL EXAMINATION

We shall be entitled to require that you be examined after a claim has been submitted at any reasonable
time, at our cost, by a medical practitioner acceptable to us. The report of such medical practitioner shall
for all purposes under this policy be final and binding upon the parties.

3. PREMIUMS

Premiums are due on the date of disbursement to you of the monies advanced in terms of the Loan
Agreement and on every monthly policy anniversary thereafter. Where the Insured and the Credit Provider
subsequently agree to an additional loan amount in terms of an amendment to the Loan Agreement,
premiums may be adjusted as a result of an increase in the loan amount and/or a change in premium cost
per R1000 borrowed.

4. FRAUD

If any claim under this policy is in any way fraudulent or if any fraudulent means are used by you or anyone
acting on your behalf to obtain any benefit under this policy or if any of the events insured against in terms of
this policy are occasioned by your intentional act or with your connivance, all benefits under and the premiums
paid in terms of this policy, shall be forfeited.

5. CLAIMS

a) In order to facilitate a more accurate and fair assessment of claims, we reserve the right to delay
payment of the benefit if further claim investigation is necessary.

b) Should you wish to claim on your policy, you must contact the Claims Administrators within 180 (one
hundred and eighty) days from the date of the event giving rise to the claim. Thereafter you must
within 90 (ninety) days from the date of notification deliver to the Claims Administrators all relevant
information and details of the claim in writing together with all documentation supporting the claim.

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 c) The cost of obtaining all relevant information and documentation required by us in the event of a claim
are for your account.

d) No claim is payable unless the premium is received within 30 (thirty) days of the premium Due Date.

e) No claim shall be considered in terms of this policy if you or your nominated Beneficiary are not able to
furnish documentation acceptable to us that is positive verification of the claim and the facts giving rise
to it.

f) We shall be entitled to request that employment, medical and financial information be disclosed to us
by any party who may have such information in their possession.

g) Payment by us of the benefits provided for in this policy to the nominated Beneficiary shall be a full and
effective discharge by us of our liability in terms of this policy.

h) We shall not be liable for any claims in terms of this policy unless you have complied with all the policy
conditions.

6. CLAIMS COMMUNICATION

Should you require assistance in the event of a claim, kindly contact the Claims Administrators:-

Channel Life Limited

Tel: 0861 044 359

Fax: 011 388 1585
E-mail: splclaims@sanlamsky.co.za

7. REJECTION OF CLAIM AND TIME BAR

If we or the Claims Administrators decline liability for a claim in terms of this policy or cancel the policy,
representation may be made to us within 90 (ninety) days of the date of the letter of rejection or cancellation
letter. Representation must be submitted in writing to:

The Compliance Officer

Channel Life Limited
P O Box 1941
HOUGHTON
2041

Toll-free number : 0860 480 000

Fax number : 0860 480 001

Alternatively, you may contact:

The Ombudsman for Long Term Insurance

Private Bag X45
Claremont
7735

Telephone number : 021 657 5000

Facsimile number : 021 674 0951

If the dispute is not satisfactorily resolved in this manner, legal action may be instituted against us for the
enforcement of the claim by way of the service of summons against us. Summons must be served on us
within 180 (one hundred and eighty) days of the original letter of rejection or cancellation letter, failing which
all benefits in respect of such claim shall be forfeited and no liability can arise in terms of such claim.

8. GENERAL CONDITIONS

a) Period within which to claim

There shall be no liability for any claim under this policy after the lapse of 9 (nine) months from the date
of the event being claimed for unless such claim is subject to pending legal action.

b) Period of Grace

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 Notwithstanding the provisions contained above, you shall be entitled to a period of 15 (fifteen) days
from the premium due date reflected in the Loan Agreement in which to pay your premium. In the case
of monthly policies, this period of grace only applies from the second month of the currency of the
policy.

c) Change of Details
It is your responsibility to inform us immediately in writing and within not more than 14 (fourteen) days
of any change to the original details supplied on your application for this policy or as specified in the
Loan Agreement.

d) Amendment of the Policy and/Or Premium

The policy including the Premiums payable may be amended by us from time to time by way of
endorsement signed by us and sent to you or the agent acting on your behalf. Endorsements that
provide amendments will not affect the extent of cover already provided in terms of a policy already
issued.

9. COMMUNICATIONS

Every non-claim notice to be given or non- claim communication to be made to us shall be forwarded to the
Administrators:-

Direct Axis (S.A.) (Pty) Limited

P O Box 44319
CLAREMONT
7735

Telephone Number : 0861 20 40 60

Facsimile number : 021 764 9902
E-mail :sanlamccd@directaxis.co.za

10. SPECIAL CONDITIONS

a) The commencement date of cover of this policy may not be back-dated.

b) No additional debits, arrear instalments or interest thereon in terms of the Loan Agreement, are
covered in terms of this policy, save that any additional loan amount paid out by way of a change to the
Loan Agreement will be covered in addition to the original loan amount.

11. CURRENCY AND LAWS

All payments in terms of this policy shall be in South African currency and any question of law arising shall
be decided according to the laws of the Republic of South Africa.

12. LEGISLATIVE REQUIREMENTS

Notwithstanding anything to the contrary contained in this policy, we shall have the right to do all things that
in our opinion are necessary or appropriate to comply with the provisions or requirements of any legislation
or regulations.

E. NOMINATION AS LOSS PAYEE

It is recorded that you, do hereby nominate the Credit Provider as a loss payee under this policy up to the
settlement value on the happening of the insured event

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 MATTERS OF IMPORTANCE

• Channel Life and Direct Axis have a joint venture in which they share equally in the positive performance of this
insurance scheme.

• You must accurately, fully and properly disclose all material facts. All information provided by you or on your
behalf is your own responsibility. You should be satisfied with the accuracy of any information or documentation
submitted by anyone on your behalf.

• Misrepresentation, incorrect or non-disclosure by you of any material facts or circumstance may impact
negatively on any claims arising from your insurance contract.

• If you feel that the policy or the manner in which the policy was sold does not meet legal requirements, please
contact:

The Compliance Officer

Channel Life Limited
P O Box 1941
HOUGHTON
2041

Toll-free : 0860 480 000

Fax number : 0860 480 001
Email : sanlamccd@directaxis.co.za

• Do not sign any incomplete or blank documents. No person may request or insist that you do so.