Short-Term Insurance Brokerage Services

Okhahlamba Local Municipality, based in Bergville in KwaZulu-Natal, is inviting bids for the appointment of a short-term insurance broker for a three-year period. The appointed broker will act as an independent intermediary between the Municipality and insurers, helping the Municipality navigate complex policies, secure suitable cover, and manage its insurance portfolio. Key expectations include expertise in risk assessment, competitive and tailored insurance arrangements, claims advocacy, and ongoing support. The broker must disclose the insurer on each policy, provide the specimen policy wording, and confirm the number of local authority insurance portfolios currently handled, with references. The Municipality's insurance requirements cover a broad range of classes, including buildings and structures, office contents, business all risks, theft, money, fidelity guarantee, motor own damage on a fleet basis (with an asset register attached), electronic equipment, public liability, and Sasria. The broker must also provide details of professional indemnity arrangements, with a minimum indemnification limit of R20 million. Bidders must note that the Municipality's asset schedule and sums insured are based on current information and may be adjusted at final placement and during the contract period. Premiums must include VAT. The contract is subject to a 90-day bid validity period.

Bids are evaluated on functionality first, with a minimum score of 75% required to proceed. The functionality criteria include proof of experience with government departments or municipalities over the past five years (evidenced by appointment letters or recommendation letters), company existence of more than eight years, submission of monthly claims statistics in spreadsheet format (including Self-Insurance Fund claims), the qualifications and experience of the project leader and claims manager, and a signed agreement letter from an underwriter, countersigned by both the broker and underwriter directors. Price and preference are then scored on an 80/20 basis. Pricing is restricted to brokerage fees per annum for each of the three years, and bidders must complete the pricing schedule in full, as an incomplete schedule renders the bid invalid. Compulsory documents include a CSD registration report (not older than three months), company registration certificate, certified copies of directors' identity documents, a valid B-BBEE certificate or sworn affidavit, a valid tax compliance status PIN or certificate, FSB licence, FAIS registration with representative and key individual certificates, FIA membership, and proof of residence or rates statement. Bid documents can be downloaded free of charge from eTenders, or obtained from the Municipality's SCM office for a non-refundable R400 fee. Sealed bids must be delivered to the Municipality's bid box at 259 Kingsway Street, Municipal Building, Bergville, by 12:00 on 10 December 2026. Faxed and emailed bids will not be accepted, and late submissions will not be considered. Technical enquiries may be directed to Sithabiso Khanyile (036 448 8066 / 074 763 2288), and bidding procedure enquiries to Thulile Maphalala (036 448 8056 / 087 086 9209).

For a qualified insurance brokerage, this tender offers a stable, multi-year public sector mandate with a broad portfolio spanning property, fleet, liability and specialised covers. It is a significant opportunity for brokers that can demonstrate municipal experience, sound claims management, and strong underwriter relationships. Bidders should review the full bid document carefully, as the Municipality reserves the right to reject any or all bids, to call for presentations from shortlisted suppliers, and to make no award. Successful bidders must also satisfy tax compliance, restricted supplier and bid defaulter checks, and the Municipality's supply chain management requirements.