In the Name of Allāh,

the Entirely Merciful, the Especially Merciful

Praise is due to Allāh, Lord of the worlds, may the blessings and peace be upon our master Muḥammad, the last of prophets, on his family, and all his companions.

Resolution No. 149 (7/16) Medical Insurance

The Council of the International Islamic Fiqh Academy of the Organization of the Islamic Conference, holding its 16th session in Dubai, United Arab Emirates, on 30 Ṣafar – 5 Rabīʿ al-Awwal 1426h (9–14 April 2005),

Having examined the research papers submitted to the Academy concern- ing Medical Insurance,

Having listened to the discussions on the subject,

Resolves

ONE: Definition of Medical Insurance

The Medical Insurance Contract is an agreement according to which a person (or an institution that cares for his health) undertakes to pay a specific amount or a number of installments to a particular party, against the commitment of that party to provide or bear the cost of medical services required by the person during a specific period.

TWO: Methods of Medical Insurance

Medical insurance may be contracted either through a medical institution or through an insurance company that plays an intermediary role between the in- sured person and the medical institution.

THREE: Shariah Ruling on Medical Insurance

1. If the medical insurance is arranged directly with a medical institution, it is then permissible subject to the conditions that reduce the degree of gharar to a Shariah-tolerable level, especially that medical insurance is needed to the extent that amounts to necessity since it pertains to preservation of self, mind, and progeny which are three of out of fundaments protected by the Shariah. Among such conditions are the following:

   • Detailed specification of the commitments of each

• Inspecting the health state of the insured person and the probable health hazards he may

• The financial claims by the medical institution to the insuring party should be based on the actual services provided by the former, not on presumptive set amounts, as is the case in commercial

  1. The medical insurance is permissible if it is arranged through an Islamic insurance company (cooperative or takaful-based) that observes Shariah criteria stipulated in Academy resolution 9 (9/2) of the Academy, on Insurance and Reinsurance.
  2. If the medical insurance is arranged through a commercial insurance company, it is prohibited, as mentioned in the Academy resolution 9 (9/2).

FOUR: Supervision and Control

It is incumbent upon the competent regulators to supervise and control medi- cal insurance transactions in order to achieve justice and protect insured people against over-charging and exploitation.

Recommendations

1. Calling upon the governments of the Muslim countries, charitable organ- izations, and Awqāf (Endowments) institutions to provide free of charge or low-cost medical insurance for those who do not afford the cost of medical insurance in the private sector.
2. Medical Insurance Cards should not be used except by their owners to not breach the contracts through a commitment of fraud and
3. Warning against abusing medical insurance through pretense of sickness or concealing it or presenting false information.
4. Including cooperative insurance (islamic or takaful insurance) in the agenda of forthcoming sessions of the Academy for further considera- tion in the light of the issues raised in the latest conferences and seminars and the several applications that succeeded the previous resolution of the

Indeed, Allāh is All-Knowing.