Further to the recent increase in the maximum amount announced by the Minister of Finance, an information letter was published to provide guidance on the correct interpretation of the information.
The change stems from the fact that the previous limit was last adjusted for inflation in 2008, and also to align the maximum benefit with the proposals by National Treasury on the micro-insurance regulatory framework. The initial proposed maximum amount was R50 000, so the newly announced maximum amount of R30 000 is an incremental increase towards this suggested figure.
Insurers are cautioned to verify the conditions contained in their registration documentation, as there may be restrictions imposed.
Should this be the case, such insurers may apply to the FSB to have the limitations removed.