Why do you need levy cover?
Levy cover offers a solution for all community schemes who are struggling with members who perpetually default on their levy payments. With levy cover, community schemes can continue their operations without disruption.

What is levy cover?
A community scheme’s greatest asset is their cash flow, generated by members paying their monthly levies. If the levies are not paid, the body corporate’s cash flow is immediately under pressure.

Without levy income, the community scheme will be unable to honour its monthly expense obligations such as municipal bills, insurance premiums and maintenance.

ONE Levy Cover aims to stimulate wealth creation in community schemes by providing the necessary liquidity to maintain the common property to ensure that the owner’s property investment is protected and sustained.

With levy cover, a community scheme never needs to suffer as a result of defaulting owners.

Features and benefits of levy cover

  • Community schemes are not affected by legal delays, nor the high cost of collection.
  • Payments made to the scheme are in settlement of claims; it is not a loan.
  • There is no strain on the budget as cover includes special levies, utility charges and interest.
  • Debt is eliminated immediately with the injection of cash.
  • The scheme’s cash flow is now guaranteed, enabling the trustees to maintain the common property without any interruption or delay.
  • The policy is easy to understand and conforms to treating customers fairly.
  • Levy claim payments will not have a negative impact on the claims history.
  • Levy cover is included as a value-added product (VAP) in ONE’s Sectional Title Solution.

Download the ONE Levy Cover booklet here – for everything you need to know about Levy Cover.

The process of providing levy protection to community schemes starts with getting the right cover.

Levy cover can be requested separately, regardless of who the scheme is insured by.

How to Claim

The following documentation are required for a successful claim:

  1. Claim Form: Complete all required details. Download template
  2. Special Resolution: A special resolution is required only once, and must be obtained in order to incept this type of cover. The resolution must be passed at a general meeting, with at least 75% of the owners voting in favour, or by conducting a round robin process. Download template
  3. Power of Attorney: This document is part of the policy and must be signed. It serves to appoint the debt collector who will be recovering claims related to the insurance policy on behalf of the community scheme. This document is required only once, at inception of the policy. It must be approved at a general meeting of owners and the resolution must be signed by two trustees. Download template
  4. Signed Minutes of AGM or SGM: The minutes must reflect the outcome of the special resolution vote.
  5. Accepted Budget and Levy Schedule: Schemes are required by law to budget for the anticipated day-to-day running expenses of the scheme for the next financial year. The levies payable by each owner is reflected in a schedule which has been calculated in accordance with the budget. These levies are used to pay the running expenses of the complex.
  6. Trustee Resolution: This signed resolution is required every year for normal levies, and must be signed within 14 days after the annual general meeting when the budget has been determined. Download template
  7. Trustee Special Levy Resolution: This signed resolution is required in respect of unforeseen and unbudgeted expenses, as well as when a claim is made for unpaid special levies. It is a special levy resolution, which requires at least 75% of the owners voting in favour of the resolution. Download template
  8. Trustee Interest Resolution: This trustee resolution is signed at a meeting of trustees, and stipulates an interest charge of 2% per month to be levied against overdue accounts, which is calculated and compounded monthly. Download template
  9. Signed AGM Minutes

For unbranded versions of our Resolutions templates, please make use of the download links below:

  1. Special Resolution Form
  2. Power of Attorney Form
  3. Trustee Resolution Form
  4. Trustee Special Levy Resolution Form
  5. Trustee Interest Resolution Form

The levy policy is underwritten by Mutual & Federal Risk Financing Limited, a licensed non-life insurer and can only be purchased through an insurance broker accredited by ONE Insurance Underwriting Managers (Pty) Ltd, FSP 8783.


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