Last time when I read about life insurance policy and you said that it is haraam then I cancelled my policy even after paying my premiums for three years
Mu' meneen Brothers and Sisters,
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One of our brothers/sisters has asked this question:
Dear Brother, last time when I read about life insurance policy and you said that it is haraam then I cancelled my policy even after paying my premiums for three years. Brother I wanted to know if we can go for a Mediclaim policy to pay hospital bills. Tomorrow in case of emergency how would a person be able to cope with this problem as now a days hospital bills just ruin your life. Be answer as soon as possible.
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Dear and Beloved Brother, the concept of insurance per say in its essence is not prohibited in Islam; it is the riba or interest element, which is the financial back-bone of modern day conventional insurance, is what has been declared haraam and absolutely prohibited in Islam.
At the times of the Prophet Mohamed (saws) and the Rightly Guided Khalifahs, there was a system of Bayt-ul-Maal or central treasury of the Islamic State, which if needed, would play the role of being the insurers of its citizens.and when one amongst the citizens was burdened with a calamity or necessity which was beyond their means, the leader of the believers had the authority to relieve the person of his burdens and compensate the loss amount from the bayt-ul-maal.
Thus insurance in its essence is not what is prohibited in Islam, it is the interest element involved in modern conventional insurance which is deemed absolutely forbidden in Islam. Alhamdolillah, today there are many Islamic Insurance companies who provide insurance in various categories in accordance with Shariah and interest-free principles. If one is fortunate to live in a Muslim nation which have Islamic Insurance companies that provide medical insurance on Shariah or interest-free principles, then there is absolutely no harm in seeking medical insurance from such institutions.
But if one lives in a nation where there are no Islamic Insurance companies which provide cover for medical emergencies, and one sincerely believes that Allah Subhanah will accept his excuse on the Day of Judgment that he only took out conventional interest-based medical insurance because he feared he and/or his family would be financially ruined in case of an emergency; then if he wills, he may take his chances whether or not his excuse will be accepted by Allah Subhanah on the Day of Judgment.
Whatever written of Truth and benefit is only due to Allahs Assistance and Guidance, and whatever of error is of me alone. Allah Alone Knows Best and He is the Only Source of Strength.
Your brother and well wisher in Islam,