16 Jun, 2019 | 12 Shawwal, 1440 AH

Question #: 2191

January 21, 2018

Assalamu Alaikum, Company i work for provides insurance benefits from date of joining to each of its employees through an insurance company. Employee does not have to pay any amount of premium during entire stay with the company. Premium is entirely paid by my company only. Insurance Policy covers employee, his/her spouse, 2 children and parents. Recently my father was hospitalised. I can claim his hospitalisation charges and other medical expenses from insurance benefits provided by my employer. will it be permissible for me to do so? Please explain. If it is permissible to claim the amount then for what purposes can i use that money?

Answer #: 2191

Answer of your question is following with the name of Allah (SWT).

There are three ways the employer companies do with insurance companies for company patients.

  1. Insurance companies directly pay the hospital expenses and charges, and hospitals directly receive from them. In this case, the department will be guilty of insurance matters. But this situation is permissible for patients because the responsibility of spending costs is on the department. Then the department is responsible for what he has to pay for the bills.
  2. Patients pay bills and then their employer company pay them back after receiving from insurance companies, this situation is not permissible for Employer Company but it is permissible for an employee to treat such a way.
  3. The department has bounded that the Employees / patients contact directly to the insurance companies to pay their bills... in this situation the employee is getting money from the insurance company, which is mostly prohibited therefore this way would not be permissible for employee. But if employee/patient knows the premium amount that his employer company has paid to insurance company, that amount has not given to employees then as much as the premium left with the insurance company he can receive the amount within that range.

(Taken from: Fatwa Darul Uloom Krachi)

Allah knows best

Abu Bakar Siddique

Mahad ul Faqeer Jhang

22 / Rajab / 1439 AH

09 / April / 2018 AD