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Urgent notification to registered long-term or short-term insurers who offer health or accident policies

28 March 2017
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On 23 December 2016 the Minister of Finance gazetted the Demarcation Regulations under the Long-term Insurance Act and the Short-term Insurance Act.
The Regulations take effect from 1 April 2017.

The Regulations identify the types of policies that would remain subject to supervision by the Financial Services Board and those that would be regarded as “the business of a medical scheme”. Suppliers of policies that are regarded as “the business of a medical scheme” are required to register as Medical Schemes under the Medical Schemes Act and be subject to supervision by the Council for Medical Schemes (CMS).

On 15 March 2017 the CMS issued Circular 19 of 2017 which provides that any insurer supplying primary healthcare and hospital indemnity policies must apply for exemption by 31 March 2017. The information required by the CMS for purposes of such exemption applications is not extensive, and is set out in paragraph 7.1 (pages 8 and 9) of the Circular.

If the exemption is granted then the initial submission must be supplemented by a far more detailed submission within a further 30 days, containing information as set out in paragraph 7.2 (pages 9-11) of the Circular.

To view a copy of the Circular please click here. For further information please contact David Geral.