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Medical Health insurance and claims

Medical insurance and claims

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:

Assalamu alaikkum

In my company, the management has contract with insurance that covers employees health. When we go under any medical treatment, shall we rise insurance claim? is that allowed in Islam?

Jazak allah.

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Health 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.

Your Question: the management has contract with insurance that covers employees health. When we go under any medical treatment, shall we rise insurance claim? is that allowed in Islam?

Since the management of the company where you work has taken the responsibility of providing health insurance to its employees, the onus and responsibility of making sure it is done through legal means is upon them; and the majority of the scholars and jurists in Islam are of the opinion that there is no harm if the employee gets medical treatment and raises a claim for its expense from the insurance company.

Some scholars and jurists are of the opinion that if one knows for sure that the source of the funds received from the insurance company are interest-based, and so fears Allah that he wants absolutely nothing to do with ‘riba’ or interest, he always has the option of not raising any claims for his medical treatment from the insurance companies; or at the very most, raise a claim equivalent only to what he has contributed towards the premium paid.  

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,