Is health insurance for employees – by deducting a monthly amount – permissible?

Commercial insurance is forbidden in all its forms, due to its inclusion of excessive gharar (uncertainty), gambling, consuming people's wealth unjustly, and imposing obligations not required by Sharia. It also causes great dangers, such as intentional destruction of property and homicides, in order to acquire money.

Therefore, one must not enter into these forbidden contracts. If a company pays for collective insurance for its employees, it is not permissible for the employee to benefit from it or to register their name in the list of beneficiaries. Rather, the company officials should be advised.

If the employee is forced to sign, they must avoid it as much as possible, even if it means leaving the job. However, if they cannot leave the job, neither they nor their heirs are permitted to benefit from the insurance money. They are, however, entitled to benefit to the extent of what was deducted from them without their choice.

The available Sharia-compliant alternative is cooperative Islamic insurance, despite some reservations regarding its application.