GAP COVER

CityPress - - Business -

This cover pays for the short­falls that might oc­cur on doc­tors’ and spe­cial­ists’ ac­counts when hos­pi­talised or where cer­tain out-pa­tient pro­ce­dures are per­formed.

Gap cover poli­cies have been un­der re­view by Na­tional Trea­sury and the first draft reg­u­la­tions have pro­posed ban­ning gap cover prod­ucts as they were in ef­fect car­ry­ing out the business of a med­i­cal scheme. But after con­sul­ta­tion, it was clear there is a role for gap cover to pro­vide a low-cost so­lu­tion to meet­ing bills not cov­ered by med­i­cal aid.

The com­pro­mise is that th­ese poli­cies can con­tinue, pro­vided they op­er­ate within a frame­work where there are strict prod­uct pa­ram­e­ters and mon­i­tor­ing by the Fi­nan­cial Ser­vices Board. Gap cover may also only be pro­vided to in­sured per­sons who are mem­bers of a med­i­cal scheme. It is seen as an en­hance­ment and not as a re­place­ment.

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