HEALTH INSURANCE IN ISLAM
QUESTION:
As Salaamu Alaikum,
Based on Dar ul Ifta Deoband fatwa, one can take interest money from government banks to pay income tax to the same government. In light of that fatwa: 1. I am planning to buy SBI medical insurance (Indian govt. company). I am an unemployed person, who recently paid a large amount of money for my wife’s treatment. Is buying this insurance and availing benefits halal? Especially in the changing circumstances post-Covid scenario. 2. If the above is not halal then, another scenario is that my father has worked for 27 years in government services. He must have paid thousands of rupees (say 5 million) in taxes to the government. In this case, can I buy government insurance and claim as much as the amount of taxes paid in his life? He is currently alive and I stay with him as a dependent he takes care of my financial needs. 3. If the above (point 2) is permitted, will this be applicable even after his(father’s) death? Such that I(or my later generations) utilize his paid amount of taxes for medical insurance later on. Jazakallahukhair.
ANSWER:
Wa Alaikum As Salaam,
- Although the Fatwa allows a person to take interest money from the Government banks and pay Government taxes, it does not encourage a person to put his money in a bank to earn interest.
With respect to your plan to buy SBI medical insurance, (which is an Indian Government company), many scholars have prohibited Muslims from buying insurance policies. Therefore, if you have a valid reason for taking out an insurance policy, you can consult an Alim or Mufti in your area and let him guide you along this.
- The taxes paid by your father to the government when he was employed by them are justified, and almost in every country, workers in government services and non-government services are required to pay taxes. These taxes are used for different services that are provided by the government and can be justified. Taxes that are normally taken by the government is not like a pension paid to them. Taxes are not saved up or invested by the government to be given back to employees/workers. Instead, they are used by the government in providing different services and facilities for the Citizens of a Country. Therefore, it will not be permissible for you to buy a government insurance policy simply to claim taxes your father paid towards them. When you make a claim to an insurance company, they normally use monies that are achieved through ‘Riba’ (interest) to pay you, and they do not use the taxes your father paid while he was employed, to pay your claims.
And Allah Knows best
Mufti Waseem Khan
07/06/2022