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Health Insurance: Allowed?

02 October, 2018
Q I work in a MNC company in India, and have a question regarding medical insurance they provide. Some amount would be deducted from my salary per annum towards medical insurance, and in case of hospitalization, I have to bear cost on the basis of 95:5% (5% being my contribution) towards myself and 80:20% other family members. This medical insurance is optional and I can opt out of policy and no deduction will be done in my salary, but in that case, in India we don't have a medical insurance which can be termed halal and so cheap. Can you, please, let me know whether it’s permitted to take the medical insurance or not?

Answer

In the Name of Allah, Most Gracious, Most Merciful. 

All praise and thanks are due to Allah, and peace and blessings be upon His Messenger.


In this fatwa:

Having health insurance in today’s world is really of extreme necessity that a Muslim may opt for.


In his response to your question, Prof. Dr. Monzer Kahf, Professor of Islamic Finance and Economics at Qatar Faculty of Islamic Studies, states:

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This is a kind of necessity that makes it permissible to take conventional insurance until an Islamic insurance exists in your country.

In fact, having health and other insurances in today’s world is really of extreme necessity, you must realize this.

Almighty Allah knows best.

Editor’s note: This fatwa is from Ask the Scholar’s archive and was originally published at an earlier date.

About Prof. Dr. Monzer Kahf
Dr. Monzer Kahf is a professor and consultant/trainer on Islamic banking, finance, Zakah, Awqaf, Islamic Inheritance, Islamic estate planning, Islamic family law, and other aspects of Islamic economics, finance, Islamic transactions (Mu'amalat). Dr. Monzer Kahf is currently Professor of Islamic Finance & Economics at the Faculty of Economics and Management, Istanbul Sabahattin Zaim University, Turkey