544. Health Insurance

By Asma Bint Shameem

Shaikh Hatem al-Hajj said:

“Health insurance is like any other commercial insurance; its basic rule is the prohibition, but dispensation and exemption might apply as deemed necessary. 

 

If healthcare is very expensive and unaffordable in your country or in the country you’re heading to, having health insurance is allowed as needed. 

 

The above rule is driven from the maxim (Necessities permit prohibitions). Needless to say that prohibited matters are allowed only when needed and as needed. Taking more than what one needs is prohibited.” (AMJA Fatwa # 83149)

And the scholars said:

“Commercial insurance of all types is haraam, whether it is life insurance, health insurance or insurance of one’s property. 

But it is permissible to deal with it in two cases: 

1.When a person is forced to do so, such as if he is forced to take out insurance on his car or a company forces its employees to take out health insurance. In that case the sin is on the one who forces people to do that.

2. When a person is compelled to take out health insurance or he is in great need of it because he is not able to cover the cost of treatment from his pocket without having insurance.

This is a need which makes it permissible to deal with health insurance according to a number of scholars, because the reason for the prohibition on this insurance is the ambiguity and the element of gambling, not riba. When it is like that, it is permissible in the case of need.” 

(Islamqa Fatwa # 170654)