Q: Can you kindly guide me as to whether health insurance on following terms is halal or not:
1) The insurance company has a seperate fund for Islamic investment whereby they commit to use my funds in sukuk bonds, real estate and gold (all are interest free);
2) The ‘gharrar’ factor is negated by offering the ‘savings’ to the insured, meaning that at the end of maturity period my monthly premium will be payed back to me (with interest free profit mentioned in point 1) irrespective of the fact that I use my health insurance or not.
A: From the information you furnished this product seems more like a conventional investment which seems to be acceptable. However to receive a more conclusive answer we would have to fine comb the actual contract, hence we advise you to make contact with some local ulama and present the paperwork to them .
And Allah knows best.
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Aadiel Moosagie (Mufti)
Council of Ulama Eastern Cape
[email protected] | www.councilofulama.co.za
+27 83 982 6968