Medical insurance and other insurance has a difference. In medical insurance, a person pays to an insurance company which in turns offers the person service(and NOT money) that whenever that person will be sick, they will afford their medical expenses. Why still is medical insurance not permissible?
The client of the insurance company does not hire the medical service of the insurance company, and neither is the insurance company in the business of medical service. They are in a insurance business and are linked to members of the medical service. The medical service is independent of the insurance company. They offer the medical service and the insurance company pays them.
If the insurance company does not pay, the medical company will claim from the patient directly. Furthermore, if the medical fee is more than the premiums paid, the insurance company will have to pay the full amount to the medical company. At times, the insurance company does not offer a 100% cover up. In that instance, the patient will have to pay the balance directly to the medical company. All the above clearly indicate that the insurance company does not directly offer medical assistance.
and Allah Ta’ala Knows Best
Mufti Ebrahim Desai