Legal representation gains prominence as the South African consumer sees value in mediation

While the majority of legal cases in South Africa relate to family related matters, criminal cases and labor disputes, the number of cases related to insurance related mediation is increasing. This increases the need for representation as these cases can often be complex in nature and will need expert mediators.

 

 

In an interview with the FAnews, Advocate Ben Myburgh who is the national business executive for the Legally Independent Peoples’ Corporation (Lipco) Group says that the general public is wisening up to their rights with regards to the insurance industry. "There has been a slight increase to 1.6% of new cases opened due to insurance related disputes during the year 2012. This increase shows that people are starting to question their insurance company’s findings and are becoming accustomed to the benefits of mediation,” he says.

 

During mediation one of Lipco’s qualified mediators will identify the common ground or the zone of possibility, explain each parties’ legal rights and the probable legal consequences should the parties refer the matter to court.

 

"The greatest problem in our legal system is the lack of legal education. This is why we waste the time of our courts and our own money on settling a vendetta when there is a different and less traumatic approach to take,” adds Myburgh.

 

A range of products that suits the industry

Through their many years in the industry, Lipco has a thorough understanding of the market and the various dynamics which drive it. Experience and customer/member demands resulted in six products, each catering for everyone within South Africa who might encounter a legal or labour issue.

Lipco caters for both common markets and niche markets. One of the company’s niche products is Her Law which is a product aimed at woman.

The company’s premier product is called Lipco Platinum and it is by far the most extensive individual and family cover within its range of products.

"Lipco Platinum is our most popular product. Apart from legal assistance with family, civil, labour and criminal law matters and Litigation cover of R200 000, what sets the Platinum product apart includes bail applications, Labour Court representation, rescission of a Magistrate’s Court Judgment (provided the member has a bona fide defence), assistance with annual tax returns, divorce fees up to the amount of R20 000, maintenance representation (provided the other party is represented) and an extended six month mediation benefit free of charge should the member be retrenched,” says Myburgh.

 

The company’s product is available at R155 a month and for even lower monthly membership fees we offer Lipco Gold and Classic which still provides the policy holder with good value for money.

"We also give our members the option of adding extended family members to the principle membership at a discount, allowing the main member to cover more than his/her immediate family,” says Myburgh.

 

Apart from selling its product through its own sales network, Lipco’s products are also sold through an extensive broker network.

"When you join our broker network, you will be selling a range of legal products that are packaged to afford clients the labour, criminal, family or civil assistance the market needs. With most of the public at a disadvantage due to the high costs that come with procuring the services of an attorney, your opportunities for business, while making a difference, are endless. Also, our products are underwritten by well-established insurers,” says Myburgh.

He ends off by pointing out that commissions are payable. "Brokers will receive a once-off finder’s fee of R100 per policy and thereafter a recurring monthly commission of 20% of the policy premium for as long as the policy is active and no future policy maintenance is required by the broker.”