Ipec to regulate Legal Aid Societies and Medical Aid Schemes
Legal Aid Societies and Medical Aid Schemes will effective June 2019 fall under the regulation of the Insurance and Pension Commission (IPEC).
While Medical Aid Societies are currently regulated by the Ministry of Health and Child Care as provided for under the Medical Services Act, IPEC has, however, been arguing that they should be under its
regulation.
In his 2019 budget statement, Finance and Economic Development Minister Mthuli Ncube said this was in line with policy thrust enunciated in the transnational stabilisation plan.
He said to facilitate smooth implementation of the recommendations, Government will enact legislation to enforce and guide the compensation process.
“Medical Schemes and Legal Aid Societies carry out insurance business in terms of the insurance legislation, despite the fact that they are not regulated and supervised by IPEC, the insurance regulator in line with the policy thrust enunciated in the Transitional Stabilisation Programme to consolidate insurance regulation, with effect from June 2019, medical aid schemes and legal aid societies will be prudentially
supervised by IPEC, to ensure the investing public is protected,” he said.
There has been several cases have failed to compensate policy holders and would get away with it resulting in people losing confidence in
the insurance sector.
Low confidence, mainly owing to hyperinflationary legacy issues, fragmented regulations, poor corporate governance and foreign currency shortages are among the chief challenges experienced in the
industry.
