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Medical Schemes Act, 1998 (Act No. 131 of 1998)

Chapter 4 : Medical Schemes

24. Registration as medical scheme


(1) The Registrar shall, if he or she is satisfied that a person who carries on the business of a medical scheme which has lodged an application in terms of section 22, complies or will be able to comply with the provisions of this Act, register the medical scheme, with the concurrence of the Council, and impose such terms and conditions as he or she deems necessary.


(2) No medical scheme shall be registered under this section unless the Council is satisfied that—
(a) members of the board of trustees the principal officer of the proposed medical scheme are fit and proper persons to hold the offices concerned;
(b) the medical scheme complies with or will be able to comply with any other provision of this Act;
(c) the medical scheme is or will be financially sound;
(d) the medical scheme has a sufficient number of members who contribute or are likely to contribute to the medical scheme;
(e) the medical scheme does not or will not unfairly discriminate directly or indirectly against any person on one or more arbitrary grounds including race, gender, marital status, ethnic or social origin, sexual orientation, pregnancy, disability and state of health; and
(f) the registration of the medical scheme is not contrary to the public interest.


(3) The Registrar shall transmit to the applicant a certificate of registration and a copy of the rules of the medical scheme reflecting the date of registration of such rules.


(4) If an application for registration is rejected, the Registrar shall in writing indicate to the applicant in what respect the medical scheme in question does not comply with the provisions of this Act.


(5) The Registrar may demand from the person who manages the business of a medical scheme which is in the process of being established, such financial guarantees as will in the opinion of the Council ensure the financial stability of the medical scheme.