In 2018, Boxing SA stated that it was working on a comprehensive life cover for licensed boxers that will cover their income protection and disability outside the confines of the sport, but nothing came out of it and in fact it remained a browbeat.
Acting CEO Cindy Nkomo has now given an update on that matter. She confirmed on Thursday that all licensees will soon have a funeral cover from the new financial year beginning on April 2022.
The regulatory body has had a benevolent fund for several years which is supposed to pay towards the rehabilitation of a boxer who sustains injuries during a sanctioned tournament.
It was clarified in 2019 that the aforementioned fund also contributes towards burial costs, should a boxer pass on as a result of an injury related to his/her participation in a sanctioned match, but does not cover injuries or death which occur outside boxing. Boxers contribute 1,5% from the purse money they earn from a boxing match towards the fund.
Numerous boxers have successfully claimed from the fund, including one boxer that passed away following a fight in Johannesburg.
Authorities within BSA in 2019 said they had secured no less than three different insurance service providers to try and design a package that covers the life of a boxer as well as the income protector in the case of disability or inability to continue with boxing but nothing came out of that exercise.
That was because all proposals presented were mostly around a premium of R4,000 monthly and a typical boxer pays between R300 to R900 per annum for their licensees. The high cost of premiums is associated with the perceived high risk in combat sport.
Nkomo now seems to have found the right key towards opening a seemingly brighter future for licensees.
“The funeral cover benefit, which will only be paid out to the beneficiary on death of the principal member, will be at no extra cost to the licensee and therefore will be deducted from the annual licensing fee which will not be increased for now as committed by Boxing SA earlier this year,” explained Nkomo.
“Just like any other risk cover, it will strictly be a benefit for a registered and approved licensees but will not have a savings option.
“This means that once a person is no longer a licensee, the cover ceases to exists but there will be an option to continue with the policy on arrangement post being licensed with Boxing SA.”
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