ISR3702
ASSIGNMENT 2 SEMESTER 2 2025
UNIQUE NO.
DUE DATE: SEPTEMBER 2025
, ISR3702 – Assignment 2: South Africa’s National Health Insurance (NHI)
1) Life policies that are covered by NHI (2)
None. NHI is not a life insurance product. It is a health-financing system that
purchases personal health services for users; it does not provide life policy
payouts. (South Africa, 2023; National Department of Health [NDoH], 2023/2024).
The NHI Act establishes a single purchaser (“Fund”) of health care services, not
life cover. Life policies (e.g., death, disability, funeral) are governed under the
Long-term Insurance Act, not the NHI Act. (South Africa, 2015/2023; Long-term
Insurance Act, 1998).
Bottom line: 0 life insurance policies are “covered” by NHI; NHI covers health
services, not life payouts.
2) Five life-insurance policy clauses (from Q1 policies) that do not apply under
NHI (10)
Insurable interest & beneficiary nomination – Life policies require an insurable
interest and named beneficiaries for payouts. NHI pays providers for services;
there are no beneficiaries or death payouts. (Long-term Insurance Act, 1998).
Underwriting/medical selection – Life insurance uses risk underwriting (medical
exams, disclosures) to set premiums or decline cover. NHI is non-underwritten;
access is based on residency/registration, not risk. (NDoH, 2023/2024; South
Africa, 2023).
Non-disclosure/contestability – Life claims can be repudiated for material
misrepresentation within a contestability period. NHI claims are provider
ASSIGNMENT 2 SEMESTER 2 2025
UNIQUE NO.
DUE DATE: SEPTEMBER 2025
, ISR3702 – Assignment 2: South Africa’s National Health Insurance (NHI)
1) Life policies that are covered by NHI (2)
None. NHI is not a life insurance product. It is a health-financing system that
purchases personal health services for users; it does not provide life policy
payouts. (South Africa, 2023; National Department of Health [NDoH], 2023/2024).
The NHI Act establishes a single purchaser (“Fund”) of health care services, not
life cover. Life policies (e.g., death, disability, funeral) are governed under the
Long-term Insurance Act, not the NHI Act. (South Africa, 2015/2023; Long-term
Insurance Act, 1998).
Bottom line: 0 life insurance policies are “covered” by NHI; NHI covers health
services, not life payouts.
2) Five life-insurance policy clauses (from Q1 policies) that do not apply under
NHI (10)
Insurable interest & beneficiary nomination – Life policies require an insurable
interest and named beneficiaries for payouts. NHI pays providers for services;
there are no beneficiaries or death payouts. (Long-term Insurance Act, 1998).
Underwriting/medical selection – Life insurance uses risk underwriting (medical
exams, disclosures) to set premiums or decline cover. NHI is non-underwritten;
access is based on residency/registration, not risk. (NDoH, 2023/2024; South
Africa, 2023).
Non-disclosure/contestability – Life claims can be repudiated for material
misrepresentation within a contestability period. NHI claims are provider
