Discovery Health establishes SA’s first sharia-compliant medical scheme

In a first for SA, Discovery Health Medical Scheme has established a bespoke plan for members to have their health administered in accordance with principles of sharia. Opting for the sharia-compliant arrangement has no impact on the benefits, cover or cost of a members’ medical scheme plan.

Discovery Health is at the forefront of conducting research and innovation aimed at extending access to affordable, quality, private health care to more people in SA. 

“In collaboration with a sharia consultant and Islamic scholars, we understood that a majority of the SA Muslim population are uninsured. There are pockets of the community that have remained without medical scheme cover because, until now, they had no option of accessing a sharia-compliant medical scheme arrangement,” says 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 sharia-compliant products to cater for the growing need of the Muslim community and to any member of the public who ascribes to the sharia principals. Now in SA, you have access to a wider range of sharia-compliant financial products, including a sharia-compliant arrangement on the Discovery Health Medical Scheme.”

With 33 plan options to choose from, members are empowered to find the cover that best suits them and have their funds managed in accordance with the principles of the sharia law — regardless of their chosen health plan.

Leading Islamic scholars pave the way forward

Discovery Health's sharia-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. The members of the sharia advisory committee were selected based on their stature, experience, and knowledge of the Islamic finance world. The committee members have served as sharia scholars at leading local and international financial services organisations, as well as consultants to regulators and industry associations.”

“We are grateful for their expertise and guidance. The scholars, which include Mufti Ahmed Suliman, Mufti Yusuf Suliman and Mufti Zaid Haspatel, serve on sharia boards locally and internationally and have been instrumental in developing Islamic financial products in SA,” says Baba. 

These scholars recently weighed in on the sharia-compliant arrangement during a four-part podcast series for Discovery Health.

“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 sharia-compliant arrangement for almost two decades. Should we regard them as permissible due to the necessity of access to health care 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,” says Mufti Ahmed Suliman. 

Alignment to Takaful principles 

Discovery Health has worked closely with the sharia advisory committee to ensure the Takaful principles on which the sharia-compliant arrangement is based, is implemented in a manner that is consistent with the Medical Schemes Act.

“Sharia-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 sharia-compliant arrangement was strictly aligned to Takaful principles. This meant 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, protecting their interests and assuring them that investments will be managed in a sharia-compliant manner. Takaful is an Arabic term which means ‘guaranteeing each other’,” says Suliman. 

For example, the Discovery Health Medical Scheme sharia-compliant arrangement excludes investments in companies involved in non-sharia 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 sharia advisory committee ensures strict adherence to these requirements.

“The Islamic scholars will continue to work with us through the Discovery Health’s independent sharia advisory committee, which has been set up to ensure ongoing compliance of all sharia products and services going forward,” says Baba. 

“We are extremely excited and humbled that Discovery Health Medical Scheme is the first to achieve sharia 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 health care.”

Choosing Discovery Health's sharia-compliant arrangement is quick and easy

Opting for the sharia-compliant option takes less than a minute for Discovery Health members:  

1. Go to Discovery.co.za and login. 
2. Navigate to “Medical Aid” in the top panel.
3. Choose “Manage Your Health Plan” from the drop-down menu.
4. Select “Manage the Sharia Compliant Arrangement” for your health plan. 
5. Read the detail and scroll down to the tick box for “I would like to select that my health plan complies with the requirements of sharia”.

Click here for more information on this innovative offering.

This article was paid for by Discovery Health Medical Scheme.