Medical Insurance in Islam
4-10-2003 | IslamWeb
Question:
My employer sets a side a specific amount of money for each employee to purchase their own selves a medical insurance which will suite their need. I understand medical insurance is not Islamically legal. My question is: will I be able to make a fake invoice that shows I have medical insurance to get my share from the company? Please note the following: 1. If the employee does not bring a proof of medical insurance and a receipt of payment. He/she will not be reimbursed from the employer. 2. There is no cash option i.e. an employee must have insurance to be reimbursed. 3. This kind of ‘fringe benefits’ according to their terms are considered part of the employee total compensation.
Answer:
All perfect praise be to Allah, The Lord of the Worlds. I testify that there is none worthy of worship except Allah, and that Muhammad 
is His slave and Messenger.
We have already issued Fatwa 81425 concerning medical insurance, so please refer to it.
In brief, medical insurance is forbidden since it includes high risk, aleatory interest and gambling. Therefore, any kind of commercial insurance is not allowed. On the other hand, the cooperative insurance is lawful. Due to the above facts, you are not allowed to deliberately engage in any medical insurance. If you are forced to apply for such insurance and an amount is taken from you, then, in this case, you have to take only the same amount that was taken from you. It is also permissible to use trickery, or even forgery to escape from the insurance or to get your right if there is no other lawful way. As for the "fringe benefits", if the authorities consider them from insurance, then you should take only the amount that is equal to the amount that was deducted from your rights. If they allot fringe benefits as gifts, or bonus, then it is permissible to use them.
For more benefit on medical insurance, please refer to Fataawa 408565, 107087, and 82599.
Allah knows best.