Discovery Health Medical Scheme is leading the way in providing members of the Muslim community with the option to have their health plan administered in accordance with Shariah-compliant principles.
Login to manage the Shariah Compliant Arrangement for your health plan
ASSURING MEMBERS OF THE MUSLIM COMMUNITY OF COMPLIANCE WITH SHARIAH PRINCIPLES
Firoze Bhorat
Chief Marketing Officer
"Innovation, for me, is to bring a clear solution to a problem to change people's lives. In this year alone, we have seen countless innovations around us to help people work, shop and exercise in new ways. At Discovery, we've introduced products across our businesses to support changing health and financial needs, and we've provided digital and technology support to trace and treat COVID-19 patients.
Sometimes, providing a solution also comes from the conviction that nothing, especially necessary access to healthcare, should require people to go against the laws they uphold. At Discovery, our values and our purpose guide us in what we do and how we do it. Comprehending the importance of values and of giving people all the benefits they can derive from funds held in the medical scheme, our teams have worked closely with leading community scholars to develop the first Shariah Compliant Arrangement for medical scheme members in South Africa.
Under the guidance of the Shariah Advisory Board, all 22 of the Discovery Health Medical Scheme plans will offer the Shariah Compliant Arrangement, which does not attract any additional monthly costs. The cover that incorporates the rules around financial transactions in the Shariah Compliant Arrangements will be effective from 1 June 2022. Any of the Medical Scheme's existing members who want this option, can make contact or indicate this choice when reviewing their health plans through a financial adviser or online.
With this arrangement, I am extremely proud that Discovery Health Medical Scheme is the first to achieve compliance and to offer plans that meet the specific Shariah principles around earning interest and the appropriate investment of funds to earn a return. I look forward to seeing the positive difference this and other enhancements will make in people's lives going forward."
DISCOVERY HEALTH MEDICAL SCHEME IS THE FIRST TO OFFER SHARIAH COMPLIANCE
Compliance with Shariah principles
Discovery Health Medical Scheme, in collaboration with Discovery Health as its administrator, has worked closely with the Council for Medical Schemes over the past few years to ensure that the Takaful principles, on which the Shariah-compliant medical scheme arrangement is based, are implemented in a manner that is consistent with the Medical Schemes Act. Following extensive collaboration and expert guidance from leading Islamic scholars, Discovery Health Medical Scheme Shariah Compliant Arrangement, was designed end-to-end in line with Shariah principles, including:
- In line with the principle of Shariah Law regarding interest, there will be no interest earned or paid on the Shariah Compliant Arrangement. Funds will be invested in a compliant manner thereby allowing members the opportunity to earn a return on MSA balances.
- Participating members gain the assurance that their contributions, and balances remaining after the settlement of claims and other relevant expenditure will be invested in Shariah compliant investments.
- Model is compliant and is based on Takaful principles
- Process flow happens in an acceptable manner
- No interest earned or paid at any stage
- No ambiguity in contracts
- Members' interests are protected
- Investments are managed in Shariah Compliant manner
Independent verified compliance with Shariah principles
An independent Shariah Advisory Committee was established by Discovery Health to secure upfront and ongoing compliance of all products and services marketed as Shariah Compliant.
Members of this committee include three leading scholars: Mufti Ahmed Suliman, Mufti Yusuf Suliman and Mutfi Zaid Haspatal who serve on Shariah Boards both locally and internationally and who have been instrumental in developing Islamic financial products in South Africa.
The Discovery Health Medical Scheme Shariah Compliant Arrangement will be subject to regular compliance reviews, and an annual Shariah compliance audit.
Shariah is the religious concept of Islam - namely, its law. Shariah compliant financial arrangements are governed by the requirements of Shariah Law and the principles of religion.
Some of the requirements of Shariah Law in financial transactions are:
- No interest: both parties need to take risk when profit is earned.
- No ambiguity: contracts should be clear and transparent.
- No investment or financing certain economic sectors that are deemed to be non-permissible, such as non-Halaal meat products, gambling companies, weapon production, etc.
- Profit and loss sharing: both parties to the financial transaction must share in the risks and rewards.
To ensure Shariah compliance, an external Shariah Advisory Committee will review and audit contracts, operations and investments to ensure that the arrangement remains compliant.
SIMPLE ELECTION PROCESS
Existing members
- Members can select the Shariah Compliant Arrangement through their financial adviser, on the Discovery Health app or on the Discovery website.
- By opting into the Shariah Compliant Arrangement, members will agree to all the additional terms applicable to the Shariah Compliant Arrangement.
- The switch to the Shariah Compliant Arrangement is applicable on request only. Members are only subject to the Shariah Compliant Arrangement if they explicitly elect to be. The default for all members is to remain outside the Shariah Compliant Arrangement.
New members
- New members, whether joining in their individual capacity or as part of an employer group, can elect to be part of the Shariah Compliant Arrangement through the member application process.
- Members will only subject to the Shariah Compliant Arrangement if they explicitly elected to be during the application process. The default for all members is to remain outside the Shariah Compliant Arrangement.
Please note: The Shariah Compliant Arrangement has been approved and certified by the Shariah Advisory Committee and is based on Shariah law and principles. It does however also remain the responsibility of the member to use the accompanying Scheme benefits offered by Discovery Health Medical Scheme in a compliant manner and for permissible reasons.