Answered by: Alimah Zakiratul Hoque
I have been offered a job in the UK. The employer offers medical insurance as a benefit to the employee. There will be no deductions made from the employee salary for premium and only tax will be deducted. Is it permissible for employees to avail or opt for such medical insurance services?
In the name of Allah, the Most Gracious, the Most Merciful
Insurances are impermissible in Islam because there is an element of chancing and Ribaa in them. The concept of insurance is based on uncertainty as the return for insurance is unknown. Also, it is an exchange of money for money (which is Riba).
Regarding Ribaa, Allah says in the Qur’an:
“But those who take usury will rise up on the Day of Resurrection like someone tormented by Satan’s touch. That is because they say, ‘Trade and usury are the same,’ but God has allowed trade and forbidden usury. Whoever, on receiving God’s warning, stops taking usury may keep his past gains- God will be his judge- but whoever goes back to usury will be an inhabitant of the Fire, there to remain. God blights usury but blesses charitable deeds with multiple increases: He does not love the ungrateful sinner.” (Qur’an 2:275-176)
Regarding chancing Allah says:
“They question thee about strong drink and games of chance. Say: In both is a great sin, and (some) utility for men; but the sin of them is greater than their usefulness. And they ask thee about what they ought to spend. Say that which is superfluous. Thus Allah maketh plain to you (His) revelations, that haply ye may reflect.” (Qur’an 2:219)
As for your question, you should opt out of medical insurance if you take the job.
Only Allah knows best.
Written by Alimah Zakiratul Hoque
Checked and approved by Mufti Mohammed Tosir Miah
Darul Ifta Birmingham