Insurance for the treatment of every person
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Fatwa number ( 20629 )
Q: Recently, the administration of Saudi Telecom Company contracted with one of the insurance companies to provide medical treatment for the company’s employees, along with their sons and wives. This is done by the telecom company paying a fixed amount in exchange for insurance covering the treatment of every person. We ask in this case: 1. Is it permissible for the administration of Saudi Telecom Company to sign this contract with the insurance company, whereby the administration pays a fixed amount for the annual subscription fee for each person, regardless of whether the cost of treating that person during the year exceeds the value of the fee or is less than it? 2. Is it permissible for the employees of Saudi Telecom Company to benefit from the treatment provided under this contract concluded between the administration of the
telecom company and the insurance company? It is known that the employees did not participate in paying the value of this contract, nor are they obligated to pay a portion of the insurance fee.
A: The medical insurance mentioned is a type of commercial insurance that is forbidden by the Shari'ah; because it contains excessive uncertainty (gharar) and gambling, and it involves consuming people’s wealth unjustly. Therefore, it is not permissible for Saudi Telecom Company to enter into this contract, nor is it permissible for its employees to benefit from it or to participate in it.
Q: Recently, the administration of Saudi Telecom Company contracted with one of the insurance companies to provide medical treatment for the company’s employees, along with their sons and wives. This is done by the telecom company paying a fixed amount in exchange for insurance covering the treatment of every person. We ask in this case: 1. Is it permissible for the administration of Saudi Telecom Company to sign this contract with the insurance company, whereby the administration pays a fixed amount for the annual subscription fee for each person, regardless of whether the cost of treating that person during the year exceeds the value of the fee or is less than it? 2. Is it permissible for the employees of Saudi Telecom Company to benefit from the treatment provided under this contract concluded between the administration of the
telecom company and the insurance company? It is known that the employees did not participate in paying the value of this contract, nor are they obligated to pay a portion of the insurance fee.
A: The medical insurance mentioned is a type of commercial insurance that is forbidden by the Shari'ah; because it contains excessive uncertainty (gharar) and gambling, and it involves consuming people’s wealth unjustly. Therefore, it is not permissible for Saudi Telecom Company to enter into this contract, nor is it permissible for its employees to benefit from it or to participate in it.
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.