Does it mean that if someone is co-paying the insurance benefits premium such that employer pays half the premium and the employee pays half the premium, it is categorized as RIBA? Can someone please explain how it becomes RIBA? I am very confused here cuz a lot of people get benefits from employer as co-pay. For some people those benefits are essential for their day to day life. I would greatly appreciate it, if someone can explain this matter. Jazakallah Khair!
Bismillahi Ta’ala
Walaikum Assalam Warahmatullah
1. Yes, as explained in the answer that co-paying for something that is inherently non shariah compliant will be impermissible.
2. When you co-pay for the insurance policy, you are involved in two separate sins.
a. a sin of voluntarily engaging in a haram transaction. [conventional insurance has the elements of riba, gambling (qimar) as well as uncertainty (gharar) in it. Details for this can be learnt from some of the discourses. ]
b. a potential sin of benefiting from the haram from this transaction.
Here, one may argue that part of the money was paid by the employer then that and any benefits accrued from that part of payment should be permissible. However, this is not correct since the voluntary engagement into the transaction where you are the beneficiary for the policy. Thus the employer paying half of the premium simply means that he is paying for you into your policy for which you stand to benefit.
This is different to when the employer chooses to pay for a policy on his own without any consent from you and makes you its beneficiary. In this case, your engagement starts from benefit being given to you. And that is suitable to be a gift according to Shariah.
3. The last part of your question concerns with the essentiality of such co-pay or such insurances. In Canada, all essential health insurance has been covered by Health Care. Regardless of the poor nature of this coverage, the bare essentials are covered and does not leave a room for need beyond. If the question is asked about United States, I often urge people to seek that answer from local American Mashayekh as they are more aware of the conditions there.
Beyond this, it is always encouraged to keep a contingent fund to assist oneself or one’s family if an unforeseen circumstance occurs. Moreover, be vigilant in helping fellow muslims when they do face these problems.
Wallahu A’lam
And Allah Ta’āla Knows Best
Mufti Faisal al-Mahmudi