Finance Minister Enoch Godongwana has approved the publication of the 2026 annual policy benefit escalations under South Africa’s Demarcation Regulations, National Treasury announced on Tuesday.
The updated amounts apply to specified health policies regulated under the Long-term Insurance Act and accident and health policies regulated under the Short-term Insurance Act. These contracts fall outside the Medical Schemes Act under the demarcation framework.
Treasury said the maximum policy benefit amounts for 2026 have been adjusted using the 2025 annual consumer inflation rate of 3.2%, as published by Statistics South Africa.
The annual publication gives insurers, policyholders and other industry participants a reference point for the CPI-adjusted limits. It does not create a general increase in all insurance payouts or medical-scheme benefits; it updates the maximum amounts attached to the specific policy classes covered by the regulations.
The Demarcation Regulations define the boundary between insurance products and medical schemes. They identify products that may be sold as health or accident-and-health insurance while remaining excluded from the Medical Schemes Act.
Regulation 7.2(2) provides for the amounts to escalate annually while the automatic-adjustment provision remains in force. Treasury publishes the revised figures each year to clarify the applicable limits.
The supporting 2026 annexures are being made available through the National Treasury and Financial Sector Conduct Authority websites. Policyholders seeking the limit for a particular product will need to consult the relevant annexure and their policy terms.
The announcement is an administrative update to the regulated benefit ceilings. It does not alter the terms of an individual contract beyond what the law and that policy provide.
