Short-term insurance services for umzinyathi district municipality (36 months)

Closing date: 10 September 2026 at 12:00. Tender documents available from 11 August 2026 on the e-tender portal (www.etenders.gov.za) and municipal website (www.umzinyathi.gov.za). No briefing or site visit is stated.

Assets Manager: Ms. NC Ndlovu, tel 034 219 1500, email [email protected]. SCM enquiries: Mr. Kwanda Ngubane, tel 034 219 1500, email [email protected]. Submission address: Princess Magogo Building, 39 Victoria Street, Dundee 3000.

Submission channel: sealed envelope deposited in the official tender box at the reception area, Princess Magogo Building, 39 Victoria Street, Dundee 3000, before the closing time. Courier deliveries must be placed in the tender box, not handed to staff. Bids sent by post, fax, email or telegram are not considered. The envelope must be clearly marked with the tender number and title. Bids must be submitted on the attached bidding documents; failure to complete all forms may invalidate the bid. Bids must remain valid for 120 days from the closing date. Returnable forms: MBD 1 (Invitation to Tender), MBD 3.3 (Pricing Schedule for Professional Services), MBD 4 (Declaration of Interest), MBD 6.1 (Preference Points Claim), MBD 8 (Declaration of Past SCM Practices), MBD 9 (Certificate of Independent Bid Determination). Also required: proof of company registration (CIPC) or ID for sole proprietor, certified ID copies (not older than 6 months), valid COIDA certificate, recent municipal account or proof of residence for the bidder and directors, and a full CSD report. Missing any compulsory document makes the bid non-responsive and it will not proceed to functionality evaluation.

Compulsory returnable documents: MBD 1, MBD 3.3, MBD 4, MBD 6.1, MBD 8, MBD 9, proof of company registration with CIPC or ID for sole proprietor, certified copies of owners' ID, valid COIDA certificate, recent municipal account or proof of residence, and full CSD report. Failure to submit any of these will render the bid non-responsive.

Two-stage evaluation. Stage 1: Functionality, scored out of 100. Bidders must score at least 70 points to qualify for Stage 2. Stage 2: 80/20 Preferential Point System per the Council SCM Policy. Functionality criteria: Company experience in short-term insurance for public sector institutions (30 points) — 10 projects with appointment and reference letters (with company stamp and traceable contacts) = 30 points; 6-8 projects = 20 points; 3-5 projects = 10 points; 1-2 projects = 5 points; no points for fewer than 1. No points if appointment letter, reference letter, or company stamp is missing. Qualification and experience of key personnel (30 points): Claims Manager/Claims Team Leader with a Degree or National Diploma in Insurance or Risk Management and more than 8 years' experience plus FAIS/FICA compliance = 30 points; 5 years = 10 points; 3 years = 5 points; 2 years = 1 point; less than 2 years = 0. Claims Supervisor: Degree/National Diploma and more than 8 years = 10 points; 5 years = 5 points; 3 years = 2 points; 2 years = 1 point; less than 2 years = 0. No points if CV or certified qualification is missing. Proof of broker registration with FSCA (20 points) — certified copy not older than 3 months. Methodology/Implementation plan (20 points) — detailed plan showing processes to expedite claims, including turnaround times; 20 points for detailed and clear, 10 for clear but not detailed, 5 for average plan.

Scope: Provision of short-term insurance for all uMzinyathi District Municipality assets for 36 months, as per the Asset Register. Policy types required: Buildings Combined Extension, Office Contents, Theft, Public Liability, Motor Fleet, Plant & Machinery, Infrastructure Assets, Electronic Equipment/Computers, Special Risk Cover, Investment Property and Land. Claim thresholds per asset class (FAR value as at 30 June 2026): Computer R1,470,904.47; Furniture & Office Equipment R609,916.01; Transport Assets R7,653,394.00; Plant & Machinery R1,146,907.08; Buildings R13,853,605.84; Intangible Assets R32,014.57; Infrastructure Assets R1,922,847,901.34; Heritage R8,655.50; Investment Property R1,190,044.10; Land R419,760.00. Reporting: Service provider reports to the Asset Unit under Budget and Treasury office. Municipality will report lost/stolen assets within 30 days and will notify of Asset Register changes; premiums revised accordingly. Claims administration: Broker must acknowledge claims in writing within 7 days of notification; if accepted, Agreement of Loss generated within 7 days of receiving all documentation. Broker must provide monthly claims statistics by the 2nd working day of the following month. Claims handling must be done in-house, not outsourced. Broker must schedule monthly claims meetings and may appoint investigators, loss adjusters and assessors, ensuring they are qualified and act professionally. No commission or incentives to investigators, loss adjusters or assessors except set fees.

Methodology/Implementation plan (20 points): Must outline the process to expedite claims processing, including turnaround times. Scoring: Detailed, clear and concise methodology = 20 points; clear but not detailed = 10 points; average plan not clear or detailed = 5 points. The municipality reserves the right to verify any supporting document.

Company experience: Appointment and reference letters (with company stamp and traceable contacts) from public sector institutions for similar short-term insurance services. Scoring: 10 projects = 30 points; 6-8 = 20; 3-5 = 10; 1-2 = 5; less than 1 = 0. No points if appointment letter, reference letter, or company stamp is missing. Key personnel: Claims Manager/Claims Team Leader — Degree or National Diploma in Insurance or Risk Management, with experience levels as per evaluation criteria; FAIS/FICA compliance required for the top score. Claims Supervisor — similar qualification and experience bands. CVs and certified qualifications must be attached; no points if either is missing.

No tender-specific quality management requirements are stated beyond the general GCC inspection clauses. The municipality may inspect the supplier's records and premises, and non-compliant goods or services may be rejected at the supplier's cost.

Pricing must be submitted on MBD 3.3. Bidders must provide a ceiling percentage for the total project, hourly and daily rates for personnel, cost per phase and man-days, and details of travel and other expenses (actual costs only, with certified invoices). Indicate whether rates are firm for the full period; if not, state adjustment basis. Provide estimated premiums per policy type for each of the three years. Payment is monthly upon invoice.

Pricing: MBD 3.3 (Pricing Schedule for Professional Services) must be completed. Bidders must indicate a ceiling percentage based on total estimated time for completion, including all expenses and taxes. Provide hourly and daily rates for personnel, phases with cost per phase and man-days, and travel and other expenses (only actual costs recoverable, with certified invoices). Indicate whether rates are firm for the full contract period; if not, state the adjustment basis (e.g. CPI). Provide estimated premiums per policy type for each of the three years. Payment: Municipality pays monthly upon receipt of an invoice. Prices must be in South African currency. Offer valid for 120 days from closing date.

CSD: Full CSD report required; CSD number must be provided. Tax: Tax compliance status (TCS) certificate or PIN, or CSD number, must be submitted; SARS must certify tax matters are in order before award. Municipal account: Recent municipal account (rates and taxes or services) in the name of the bidder and directors, showing no arrears for more than 90 days, or proof of residence with affidavit or lease agreement. COIDA: Valid COIDA registration certificate in the name of the broker/service provider. Company registration: Proof of CIPC registration, or ID for sole proprietor. Certified ID copies not older than 6 months. B-BBEE: Preference points claimed via MBD 6.1 under the 80/20 system.

Contract period: 36 months from signing, subject to performance review. Cancellation: Municipality may cancel if the service provider fails to comply with the agreement after being notified to remedy within a specified time. General conditions: Standard GCC clauses apply, including performance security (if specified in SCC), payment within 30 days of invoice, penalties for delay at prime interest rate per day, termination for default or insolvency, dispute resolution via mediation then court, and prohibition of collusive bidding. The municipality is not obliged to accept the lowest bid and may not proceed with the award. Acceptance is subject to Bid Adjudication Committee approval.

Bids must be valid for 120 days from closing. No bids after closing will be considered. Sealed bids must be placed in the tender box at Princess Magogo Building, Dundee. Bids submitted by fax, email, telegram or telex are not considered. Prices must be in South African currency. Bidders must familiarise themselves with GCC clause 16.3 on payment. The successful bidder's name will be published on the municipal website. Acceptance is subject to Bid Adjudication Committee approval.

Functionality threshold: minimum 70 out of 100 points to qualify for the 80/20 preferential stage. Criteria weights: Company experience (30), Key personnel (30), FSCA registration (20), Methodology (20). The municipality reserves the right to verify supporting documents.