On Friday 2 March 2012, National Treasury published draft regulations regarding the rules to demarcate between medical scheme business and insurance business. In a newspaper article on the weekend, it was stated that these regulations will put an end to Medical Gap Cover.
The draft regulations are by no means final but rather they have been released for public comment and all stakeholders and members of the public have the opportunity to provide comments by 23 April 2012. Furthermore the regulations allow for a further process of interaction between insurers and the Regulators which must still take place and the insurers will be contesting these regulations in the interests of consumers.The debate between the insurers and the Regulators regarding the future of health insurance is likely to continue for a long time before consensus is reached and we will be participating in this process. In the meantime Medical Gap Cover meets a real consumer need and it is a legally valid insurance product which we expect to be around for many years to come. We must continue selling Gap Cover as currently consumers are not at all prejudiced if they take out the cover.