Authored by: Fatwas of the Saudi Fatwa Committee
Question:
What is the ruling on medical insurance in Islamic law? Its process involves the insured person paying a monthly or annual premium to the insurance company. In return, the company covers medical expenses when required. However, if no medical treatment is needed, the company does not return the premiums paid.
Answer:
If medical insurance operates in the manner described, it is not permissible. This is because it involves "gharar" (excessive uncertainty or deceit) and puts individuals at financial risk. For instance:
[Reference: Al-Lajnah Ad-Daimah, Fatwa No. 4560]
Question:
What is the ruling on medical insurance in Islamic law? Its process involves the insured person paying a monthly or annual premium to the insurance company. In return, the company covers medical expenses when required. However, if no medical treatment is needed, the company does not return the premiums paid.
Answer:
If medical insurance operates in the manner described, it is not permissible. This is because it involves "gharar" (excessive uncertainty or deceit) and puts individuals at financial risk. For instance:
- The insured person may frequently fall ill and receive treatment exceeding the amount they paid in premiums, which they are not obligated to reimburse.
- Conversely, the person might not fall ill for months, and the company retains the premiums without providing any services.
[Reference: Al-Lajnah Ad-Daimah, Fatwa No. 4560]
