New insurance regulations limit local cover

NEW demarcation
regulations between the
short-term Insurance
industry and the medical
aid industry have been
introduced, which limit travel
insurers from providing
certain benefits.
Effective January 1, 2018,
insurers will no longer be
able to provide follow-up
treatment within South Africa
even if a claim arises from
an injury or illness suffered
while travelling internationally.
The 30-day hospitalisation
cover benefit included in
the youth policy, which was
put in place to bridge any
waiting period cover gaps
implemented by medical aids,
has also been removed.
Additionally, the daily
hospital cash benefit will no
longer apply for local travel
policies.
Simmy Micheli, manager
sales and marketing for TIC,
said the insurer very rarely
received claims for any of the
above benefits and that the
changes were unlikely to have
any dramatic effect on the
industry.