SA’s first Shariah Compliant medical scheme arrangement a success story for the Muslim community

Discovery Health continuously invests in ongoing research and innovation aimed at extending access to affordable, quality, private healthcare to ever more people in our country.

“In collaboration with a Shariah consultant and Islamic Scholars, we understood that a large majority of the South African Muslim population are currently uninsured. There are pockets of the community that have remained without medical scheme cover because, until now, they had no option of accessing a Shariah Compliant medical scheme arrangement,” explains Farzana Baba, Head of Health Product Development at Discovery Health.

“If you look back at the investment markets, there are several local and global investment houses creating Shariah compliant products to cater for the growing need of the Muslim community and to any member of the public who ascribe to the Shariah principals. Now in South Africa, you have access to a wider range of Shariah compliant financial products than before, including a Shariah Compliant Arrangement on the Discovery Health Medical Scheme.” With 25 plan options to choose from, members are empowered to find the cover that best suits them, and now, to have their funds managed in accordance with the principles of the Shariah law, regardless of the chosen health plan.

Leading Islamic Scholars paved the way forward

The Discovery Health Medical Scheme Shariah Compliant Arrangement is the product of extensive collaboration that’s taken place over the past two years.

“We have worked closely with leading Islamic scholars for expert guidance on alignment of Muslim medical scheme members’ current health funding arrangements with all aspects of Islamic religious practices,” adds Baba. “The members of the Shariah Advisory Committee were selected based on their stature, experience, and knowledge in the Islamic finance world. The committee members have served as Shariah Scholars at leading local and international financial services organisations as well as consultants to regulators and industry associations.”

“We are very grateful for their expertise and guidance. The scholars – which include Mufti Ahmed Suliman, Mufti Yusuf Suliman and Mufti Zaid Haspatel, serve on Shariah Boards both locally and internationally and who have been instrumental in developing Islamic financial products in South Africa.”

• Listen to what these scholars have to say in Discovery Health Medical Scheme’s dedicated four-part podcast series about the Shariah compliant Arrangement.

Mufti Suliman says, “The introduction of this arrangement is a huge success story for our Muslim community. The Board of Muftis has grappled with how to deal with the lack of a Shariah compliant arrangement for almost two decades. Should we regard them as permissible due to the necessity of access to healthcare or offer an exemption? These difficult discussions are now no longer necessary as we have a medical scheme option that’s in accordance with Islamic principles.”

Alignment to Takaful – members funds are aligned with Shariah compliance in multiple ways

Discovery Health has worked closely with the Shariah Advisory Committee to ensure that the Takaful principles on which the Shariah-Compliant Arrangement is based, is implemented in a manner that is consistent with the Medical Schemes Act.

Mufti Suliman adds, “Shariah compliant financial arrangements must meet the requirements found in Islamic Commercial Law and the broad principles of Islam. In formulating the arrangement, we needed to ensure that the Discovery Health Medical Scheme Shariah Compliant Arrangement was strictly aligned to Takaful principles, ensuring that no interest is earned or paid to a member at any stage and removing an ambiguity in contracts that are entered into by members, so protecting their interests and assuring them that investments will indeed be managed in a Shariah compliant manner. Takaful, is an Arabic term which means ‘guaranteeing each other’.”

• For example, the Discovery Health Medical Scheme Shariah Compliant Arrangement ensures that there is no ambiguity in medical scheme contracts and excludes the receipt or payment of interest. In addition, it excludes investments in companies involved in non-Shariah compliant activities such as products or services related to conventional banking, insurance and financial services, gambling, alcoholic beverages, and non-halal food products. The externally appointed Shariah Advisory Committee ensures strict adherence to these requirements.

“The Islamic scholars will continue to work with us through Discovery Health’s Independent Shariah Advisory Committee, which has been set up to ensure ongoing compliance of all Shariah products and services going forward,” explains Baba.

“A huge success story for our Muslim community”

Baba adds, “We are extremely excited and humbled that Discovery Health Medical Scheme is the first to achieve Shariah compliance. We look forward to seeing the positive difference this offering will make to people’s lives, and to engendering a true sense of inclusivity in the Muslim community when it comes to access to private healthcare.”

Choosing the Shariah Compliant Arrangement is quick and easy

If you want to opt in for the Shariah compliant option, get more information or get a quote to join Discovery Health Medical Scheme, visit: https://www.discovery.co.za/medical-aid/dhms-shariah-compliant-arrangement.

The Discovery Health Medical Scheme is an independent non-profit entity governed by the Medical Schemes Act, and regulated by the Council for Medical Schemes. It is administered by a separate company, Discovery Health (Pty) Ltd, an authorised financial services provider.