NATIONAL ASSEMBLY : 24th June 2008

 

Madame Speaker,  

The bill being debated today amends the Long-term Insurance Act and the Short-term Insurance Act. In amending these acts, it aims to achieve more precise demarcation between them and the Medical Schemes Act, 1998.  

The amendments contained in the bill are needed to update the existing laws, close certain regulatory gaps and to generally improve the legislative framework. The latter is very important for a sound and well-regulated insurance services industry, and to provide financial market stability to the industry and consumers. 

The bill is the result of wide-ranging consultation between the insurance industry and intermediary bodies on conflicts of interest and "white-label / binder" arrangements as well as consultation with the Department of Health and the Council for Medical Schemes on demarcation between health policies and medical schemes.  

In respect of the latter, the IFP fully supports the agreement that was reached to the effect that health insurance policies will be regulated solely in terms of the Long-term or Short-term Insurance Acts.  

The regulations for this demarcation will be made by the Minister of Finance in consultation with the Minister of Health and after consultation with the Council for Medical Schemes and the Financial Services Board. The IFP supports this inclusive process.

The IFP welcomes the fact that information of health policy products will have to be filed with both Registrars and that they will enforce the regulations in terms of their respective Acts.  

In conclusion, the successful implementation of the bill will be determined to a large extent by whether a close-working relationship can be established between Treasury, the Department of Health and the Registrars.  

The IFP certainly hopes that that will be the case. 
 

Thank you