Security For Costs

By combining the LPS post dispute insurance policy with an on demand bond issued by Constantia Insurance Co Ltd via their brokers SGI Guarantee Acceptances ( Pty) Ltd, we are able to furnish litigants who are required to put up security a very cost effective method of fulfilling the requirement.

SGI are specialists in court bond business offering bonds, via Constantia, to liquidators for amounts up to R75million.

SGI, after an appropriate due diligence on the LPS insurance policy have agreed to accept the policy as collateral security and issue against that security an on demand bond for security for costs where required. Presently (June 2003) SGI have limited this offer to security amounts of R500 000, we will however negotiate with them for amounts above this where required.

In addition to the arrangements in place with Constantia Insurance, Standard Bank of South Africa have, on a case by case basis, agreed to provide on demand bonds where security for costs is required using the post dispute insurance policy as collateral security.

The cost of the bond is approximately 5% of the bond value plus VAT per annum. The cost of the underlying policy will depend on the nature of the risk to be covered but will be quoted on application

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