Annual Policy Benefit Escalations in terms of Demarcation Regulations have been published.
National treasury published the policy benefit escalations in terms of the Long-term Insurance Act (LTIA) and the Short-term Insurance Act (STIA).
The Regulations focus on the demarcation between health insurance policies and medical schemes and sought to find a better balance between the two.
The Demarcation Regulations specify which types of contracts are regulated under the LTIA and STIA as health policies and accident and health policies, respectively, and accordingly are excluded from the Medical Schemes Act.
Regulation 7.2(2) of the Regulations provides that all amounts referred to in sub-regulation (1) escalate annually, from the effective date, by the Consumer Price Index (CPI) annual inflation rate published by Statistics South Africa.
In a statement, treasury announced that the amounts will be published on an annual basis “in order to maintain clarity on the escalated policy benefits”.