Circular PI/MA-21/4/2011 – Discounts

NAMFISA
NAMIBIA FINANCIAL
INSTITUTIONS SUPERVISORY AUTHORITY
Safeguarding the Nation's Wealth

CIRCULAR NO: PI/MA-21/4/2011

CIRCULAR FROM THE REGISTRAR OF MEDICAL AID FUNDS

To the Principal Officers and Members of Board of Trustees of Medical Aid Funds

THE USE OF DISCOUNTED MEMBERSHIP FEES BY MEDICAL AID FUNDS

Background

NOTE: This circular does not repeal Circular Letter PI/MA/1/2007.

The practice of offering discounted fees with the objectives to;

a) Entice new groups to join funds; b) Or/and to existing groups to retain them

is a contravention of Regulation 3 (1) and is hence forth not permitted.

Purpose of the Circular

The purpose of this circular is to inform the Principal Officers and Board of Trustees that the Registrar, after consultation with the Medical Aid Funds industry, has taken a decision to allow for discounted fees structures to the entire membership (groups and individual members), of the registered Medical Aid Funds, provided that such discount is based on risk assessment of the Medical Aid Funds. For example, in an event where an existing employer group or individuals within the fund maintain a positive claims ratio and provided that such discount is defined in the approved rules.

The practice of discounted fees structures as mentioned above shall be permissible under the following conditions that;

• It is based on risk assessment;
• Is clearly explained/defined in the rules;
• And that such rules are approved by the Registrar

Tel: +264 61 290 5000, Fax: +264 61 290 5158, PO Box 21250, Windhoek, Namibia, 154 Independence Ave, Sanlam Centre, www.namfisa.com.na

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Enquiries

1. Should you have any enquiries with regard to this circular, please contact Mr. W.U. Kamburona at wkamburona@namfisa.com.na or Tel No.: +264 61 290 5125.

PHILLIP N. SHIIMI
THE REGISTRAR OF MEDICAL AID FUNDS