I’ve been working for a company for the last 2 years. The company provides a health insurance for all employees and pays for the monthly premiums. But since April, the insurance company increased their premium rates by 20%. So now, my employer bears the 10% expense of this increased premium and the other 10% is deducted from the employee’s salary, which is around $19 per month.
So would it be permissible for me to take benefits from the health insurance, since a portion of the monthly premium is being deducted from my salary (10%) ?
Bismillahi Ta’ala
Walaikum Assalam Warahmatullah
At the outset, all conventional health insurance are not Shariah Compliant. When it comes to workplace health insurance, then as long as the coverage is not taken out of volition of the beneficiary.
In the question mentioned, towards the first leg, the insurance was entirely covered by the employer, and there was no premium taken from the employee. In this case, taking all the benefit from the health insurance is permissible and halal, as the payments from the employer will become tabarru’ (gift).
Thereafter, since April when the company moved over to levy the 10% of the additional premium over to the employee, then two scenarios can take place:
a. The employee has a choice of removing himself from the insurance
b. The employee is forced to pay without any volition to remove himself.
In case of a, the employee must opt out of this insurance, as his voluntary opting in would be his choice to engage in a haram transaction.
In case of b the employee will be excused from the sin of entering into a sinful haram transaction, however, since he is still part of this transaction, he must find all the way to get out of it. If it means that he has to seek another job, then that may be his last resort.
In case of b while he is still searching for another alternative, if he happens to have to use the insurance benefits, he must only use the equivalent of accumulation of his 10% worth of premiums. Anything beyond this would be riba for him. For example, if he has thus far paid 5 month worth of premiums, then he is only allowed to use $95 from the benefits from such a insurance.
Wallahu A’lam
And Allah Ta’āla Knows Best
Mufti Faisal al-Mahmudi