INSURANCE OF FIXED ASSETS

The manager or heads of departments to whom the responsibility of the
assets have been delegated shall ensure that all movable fixed assets are insured at
least against fire and theft, and that all assets are insured at least
against fire and allied perils. The manager and heads of department will
annually revise insurance portfolio to ensure that all assets are adequately
insured. The services of an insurance broker would be required in terms of organization’s
Supply Chain Management policy.
Any theft, loss or damage to a fixed asset should immediately be reported to
organization’s insurance brokers by the relevant head of department under whose responsibility the asset falls.
A copy of the insurance claim submitted should be
forwarded to the Chief Financial Officer who must record such claim in the insurance
register. It is the responsibility of the relevant head of department to ensure that all
documents / information for the completion of the claim is forwarded to organization’s
insurance brokers and that copies thereof is forwarded to the Chief Financial Officer.
The head of department should in writing request the replacement of the asset which
can only be authorized by the manager after consultation with the Chief
Financial Officer.
If the organization operates a self-insurance reserve (assuming such reserve to be
allowed), the Chief Financial Officer shall annually determine the premiums payable
by the departments or accounts after having received a list of the fixed assets and
insurable values of all relevant fixed assets from the heads of departments
concerned.

The basis of the insurance to be applied to each type of fixed asset: either the carrying value
or the replacement value of the fixed assets concerned.
Such recommendation shall take due cognisance of the budgetary resources of the organization.

- Format Of a Fixed Assets Register
- Classification Of Fixed Assets
- Fixed Assets Treated As INVENTORY
- Recognition Of Heritage Assets in the Fixed Assets Register
- Safe Keeping Of Fixed Assets
- Identification Of Fixed Assets
- Procedure In Case Of Loss, Theft, Destruction Or Impairement Of Fixed Assets
- Acquisition And Capitalization Criteria : Material Value
- Capitalization Criteria : Intangible Items
- Capitalization Criteria : Reinstatement, Maintenance And Other Expenses
- Maintenance Plans
- Deffered Maintenance
- General Maintenance Of Fixed Assets
- Depreciation Of Fixed Assets
- Rate Of Depreciation
- Method Of Depreciation
- Amendment Of Assets Lives And Dimition In The Value Of Fixed Assets
- Alternative Method Of Depreciation In Specific Instances
- Creation Of Non-Distributable Reserves For Future Depreciation
- Carrying Values Of Fixed Assets
- Revaluation Of Fixed Assets
- Verification Of Fixed Assets
- Alienation Of Fixed Assets
- Other Write-Offs Of Fixed Assets
- Replacement Norms
- Insurance Of Fixed Assets