Draft Regulations Of The Short-Term Insurance Act Released For Comment

The Minister of Finance (the Minister) published proposed amendments to the regulations made in terms of the Short-Term Insurance Act, 53 of 1998 (the Insurance Act), on Friday 2 March 2012.

The amendments relate to policies that will, in future, qualify as "accident and health" policies in terms of the Insurance Act. This will follow future amendments to the Medical Schemes Act, 131 of 1998, relating to the definition of "business of a medical scheme" (in section 1 of the Medical Schemes Act) as well as the proposed amendments to the definitions of "accident and health policies" (in section 1 of the Insurance Act) coming into operation.

The amendments to the regulations are made with reference to the Minister's powers set out in section 70(2A) of the Insurance Act, which came into force on 5 November 2008 in terms of the Insurance Laws Amendment Act, 27 of 2008.