Mu' meneen Brothers and Sisters,

As Salaam Aleikum wa Rahmatullahi wa Barakatuh.  (May Allah's Peace, Mercy and Blessings be upon all of you)

One of our brothers/sisters has asked this question:

Dear Brother, last time when I read about life insurance policy and you said that it is haraam then I cancelled my policy even after paying my premiums for three years. Brother I wanted to know if we can go for a Mediclaim policy to pay hospital bills. Tomorrow in case of emergency how would a person be able to cope with this problem as now a days hospital bills just ruin your life. Be answer as soon as possible.

Your brother,

(There may be some grammatical and spelling errors in the above statement. The forum does not change anything from questions, comments and statements received from our readers for circulation in confidentiality.)

Answer:

Medical Insurance

In the name of Allah, We praise Him, seek His help and ask for His forgiveness. Whoever Allah guides none can misguide, and whoever He allows to fall astray, none can guide them aright. We bear witness that there is no one (no idol, no person, no grave, no prophet, no imam, no dai, nobody!) worthy of worship but Allah Alone, and we bear witness that Muhammad (saws) is His slave-servant and the seal of His Messengers.

Dear and Beloved Brother, the concept of ‘insurance’ per say in its essence is not prohibited in Islam; it is the ‘riba’ or interest element, which is the financial back-bone of modern day conventional insurance, is what has been declared haraam and absolutely prohibited in Islam.

At the times of the Prophet Mohamed (saws) and the Rightly Guided Khalifahs, there was a system of ‘Bayt-ul-Maal’ or ‘central treasury’ of the Islamic State, which if needed, would play the role of being the insurers of its citizens….and when one amongst the citizens was burdened with a calamity or necessity which was beyond their means, the leader of the believers had the authority to relieve the person of his burdens and compensate the loss amount from the ‘bayt-ul-maal’.

Thus insurance in its essence is not what is prohibited in Islam, it is the interest element involved in modern conventional insurance which is deemed absolutely forbidden in Islam. Alhamdolillah, today there are many Islamic Insurance companies who provide insurance in various categories in accordance with Shariah and interest-free principles. If one is fortunate to live in a Muslim nation which have Islamic Insurance companies that provide medical insurance on Shariah or interest-free principles, then there is absolutely no harm in seeking medical insurance from such institutions.

But if one lives in a nation where there are no Islamic Insurance companies which provide cover for medical emergencies, and one sincerely believes that Allah Subhanah will accept his excuse on the Day of Judgment that he only took out conventional interest-based medical insurance because he feared he and/or his family would be financially ruined in case of an emergency; then if he wills, he may take his chances whether or not his excuse will be accepted by Allah Subhanah on the Day of Judgment.

Whatever written of Truth and benefit is only due to Allah’s Assistance and Guidance, and whatever of error is of me alone. Allah Alone Knows Best and He is the Only Source of Strength.

Your brother and well wisher in Islam,

Burhan