Q. I saw a question concerning medical insurance and would just like to ask about a slightly different scenario. Would it be permissible as an employee to be part of the company’s insurance scheme if the company pays on behalf of the employees? In the event of illness, the employee only pays a small fraction of the medical cost whilst the insurance covers the majority.
A. Since all forms of conventional insurances are connected to interest, uncertainty speculation etc., the majority of scholars have ruled against them. The allowance may only be given when it is of a dire necessity like that of being the law of the land etc. If it is a part of the company’s benefit package that they will pay your medical bills, and you may have to pay a minimum cost for medical, then this will be allowed, since in this case you will not be considered as a policy holder. However, if you are required to take out an insurance policy and contribute regularly towards it, it will not be permissible, even though the company may pay on your behalf.
And Allah knows best.
Mufti Waseem Khan