The Ruling on Commercial Medical Insurance

Question:
The questioner says: What is the ruling on the medical insurance that companies provide for their employees, and universities for their students?

Answer:
Commercial insurance, whether medical or otherwise, is not permissible. Commercial insurance is not permissible because it is consuming people’s money by unjust means. You pay a small amount and receive a large sum if a large loss occurs, or if you need treatment that costs hundreds of thousands or more, while you have only paid a little. You have consumed people’s money by unjust means, my brother. If you need treatment, treat yourself at your own expense. Treat yourself at your own expense. If a Muslim helps you with the treatment, there is no harm in that. As for these associations called commercial associations, which aim for murabahah (cost-plus sale) and for the profits to return to the shareholders, this is not permissible. They may receive profits, or they may lose multiples of what they put in. This is gambling, and it is not permissible.