Question:

Assalamu Alaikum wa Rahmatullah wa Barakaatuhu

What is the ruling on employees working in a non-government firm subscribing to the insurance of this firm which has a contract with a health insurance company?

And, what is the ruling on the employee who represents the firm in conducting contracts and negotiations with the private health insurance company?

Answer:

Wa Alaikumu Assalam wa Rahmatullah wa Baraakatuhu

My brother, perhaps you can further clarify the question.

In any case, if the meaning of the question is to find out the ruling of health insurance that is provided by the firm to its employees, i.e. the firm deducts part of the employee wage in return to guaranteed medical treatment cover to him and his family. Then this is the answer:

Regarding the health insurance:

If the health insurance was a supplement to the work contract, i.e. one of its conditions and not a freestanding contract, then it is permissible. But if it was a freestanding contract, then it is not permissible.

To detail: the employer pledges in an agreement with the employee, to provide the employee alone or with the members of his family with medical treatment cover in return for deducting part of the employee's wage, this is permissible. Because the original contract is a leasing contract of work and this is known. The commitment of the employer to provide treatment cover to the employee or with his family members is a condition; the conditions attached to contracts of work are not blocked unless there is a text that prevents them, like in the case when it legitimises a Haram or it makes a Haram legitimate (Halal). In this case a text is not needed to make it permissible, for it to become permissible, but it requires a text that does not prevent it. I.e. it is not like in actions, which in origin must be restricted by the Shar' rules, so that it requires a text for it to be permissible.

Instead the conditions in contracts are permissible unless there is a text that prohibits them.

On the authority of Katheer Ibn Abdullah Ibn Amr Ibn Awf Al Muzni from his father from his grandfather that the Messenger of Allah (saw) said:

[وَالْمُسْلِمُونَ عَلَى شُرُوطِهِمْ إِلَّا شَرْطًا حَرَّمَ حَلَالًا أَوْ أَحَلَّ حَرَامًا" [رواه الترمذي"

"Muslims are committed to their conditions except that which makes the prohibited (haram) permissible (halal), and makes the permissible (halal) prohibited (haram)" [Tirmithi]

This is on the one hand and on the other, it is part of the employee's wage which is deducted; on this basis the health insurance by the employer is provided for the employee and his family in return for the deduction of part of his wage; whether it is provided for the employee and his family from the onset or it was for the employee alone and then his family are added to him later on, with the agreement of the employer and the employee and it became part of the contract; all of this is permissible.

As for the freestanding health insurance contract, i.e. if the firm is established and it tells the people that if they want it to provide medical treatment cover when they become ill, then they have to pay it a monthly amount in return for this service; this is not allowed, because it is a contract based on an unknown, since the person does not know when they will fall ill, and whether the illness is serious or not.

Your brother,

Ata Bin Khalil Abu Al-Rashtah

26^th Dhul Qi'ddah1434 AH

02/10/2013 CE

The link to the answer from the Ameer's Facebook page.