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have to pay R6000 per month. Who other than the wealthy can

afford this excessive and exploitive sum?

(12) The term medical aid is a misnomer and highly

deceptive. Medical insurance does not provide any aid. The

vast majority of members lose the greater portion of their

premiums. A very few who suffer chronic diseases generallybenefit.

(13) Sheikh/Molvi/Mr. Karaan and Mr.Shuaib Omar seeing the

term medical aid have attempted to bamboozle the ignorantpublic into believing that medical insurance is a scheme with

altruistic ideals. People are tricked into the belief that medical

insurance provides medical aid. This wild claim is furthest from

the truth. Either the two gentlemen are shockingly ignorant ofmedical insurance due to their extremely defective research or

they have endeavoured to deliberately pull wool over the eyes

of the people who have no understanding of the exploitivemeasures and haraam methods employed by medical insuranceschemes.

(14) Approximately 80% of the population of the country is

without medical insurance cover.

(15) Medical insurance is Haraam. The elements of

prohibition in terms of the Shariah are Qimaar (gambling),Riba(interest) and a plethora offaasid (corrupt and invalid)

stipulations which render the medical insurance contract

totally null and haraam.

BY:

Mujlisul Ulama of South Africa

PO Box 3393, Port Elizabeth, 6056, South Africa

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MEDICAL INSURANCE IN A NUTSHELL

(1) Medical insurance is a contract between two parties,

namely, the medical insurance entity and the buyer of medical

insurance, who pays monthly premiums.

(2) The monthly premium for an adult is approximatelyR2,000.

(3) 25% of the premium, i.e. R500 is deposited in a specialsavings account called MSA (Medical Savings Account) which

is opened in the name of the premium-payer. Although the

premium-payer cannot draw cash from his savings account, he

nevertheless is the owner of the credit balance which there maybe in his MSA.

(4) 75% of the premium, i.e. R1500 is acquired by the medical

insurance scheme for its expenses which consist of * SolvencyBuild * Claims of patients *Administration costs * Broker

fees *Bad debts * Etcetera (The latitude of this etcetera is

extremely wide. The few at the helm only know the actual

meaning of this etcetera).

(5) The medical scheme by virtue of the insurance contract is

obliged to provide a minimum of medical benefits (PMB

Prescribed Minimum Benefit). After it has provided the PMB,if more medical benefit is required by the patient, the medical

scheme will pay for it from the members savings account(MSA). If the savings too are exhausted, medical benefit

terminates. The medical insurance will then not provide furthermedical benefit until the next year or until the member pays a

substantial cash amount of a few thousand rands into his MSA.

In most cases, the MSA savings are used up during the course

of the year.

(6) If a member remains healthy, then he loses everything.

While most members lose 75% minus the prescribed minimumbenefit, the healthy member loses a full 75% of his premiums.

The medical fraternity has coined an adage in this regard:

What you dont use, you lose. However, the problem which a

healthy person faces is that if he is desirous of using his money,he will have to break the bones in his body to enable himself to

be hospitalized. This will qualify him to recoup some of the

money he has earmarked for loss within the haraam deal.

(7) The medical insurance entity levies a penalty for late-

joiners. A person who joins at the age of 35 and over, is

penalised up to a 75% increase in the monthly premium. This

means the premium could be as high as R3500 per month.

(8) The medical insurance also prescribes a waiting period

before paying medical benefit to a patient. This is a period ofup to 12 months in which the member has to pay regularmonthly premiums without being entitled to benefits.

(9) Despite being a regular payer of premiums, the medical

insurance also requires members to make a co-payment whichis a portion of the cost of the medical benefits. The member has

to incumbently pay the co-payment from his pocket despite

the fact that he has a credit balance in his MSA. He is not

allowed to pay it from his own money in the MSA.

(10) If a member defaults in his monthly payments he forfeits

even years of payments, and he loses all entitlement to medical

benefit.

(11) Medical insurance besides being haraam, is available to

only the wealthy. A man with his wife and 3 minor children