Demarcation Regulations: 2024 escalation of policy benefits
The Minister of Finance has granted approval for the publication of the 2024 annual Policy Benefit Escalations with regards to Demarcation Regulations (Regulations) regulated under section 72 of the Long-term Insurance Act, No. 52 of 1998 (LTIA) and section 70 of the Short-term Insurance Act, No. 53 of 1998 (STIA).
The Regulations specify which types of contracts are regulated under the LTIA and the STIA as health policies, and accident and health policies, respectively, and accordingly are excluded from the Medical Schemes Act, No. 131 of 1998 (MSA).
Regulation 7.2(2) of the Regulations provides that all amounts referred to in sub-regulation (1) escalate annually, from the effective date, by the Consumer Price Index (CPI) annual inflation rate (6.0 percent) published by Statistics South Africa.
The escalation of the aforementioned policy benefits will take place each year for as long as Regulation 7.2(2) provides for automatic escalation. National Treasury annually publishes these amounts in order to maintain clarity on the escalated policy benefits.
The following supporting Annexures are updated annually and available on the websites of the National Treasury at www.treasury.gov.za and the Financial Sector Conduct Authority at www.fsca.co.za:
Annexure A: Regulation 7.2(2) (LTIA)
Annexure B: Regulation 7.2(2) (STIA)
