Question
1. Ulama now seem to have opened the door on Medical aid subscriptions. Our internal senior accountant was given this 'fatwa' a few years ago and started his own business with selling this medical aid product/service to municipal employees, and for each sign up, he gets a R100 per month per employee, and basically helps them with admin if ever they need to use it and see a doctor etc. It's also something that's as commonplace as retirement savings, pension and tax deductions, meaning most people simply pay it or expect it to be part of any employment package, as often the employer matches the employees payment with a contribution from employers side, effectively meaning a medical aid policy thats R1000 per month is paid for by R500 deduction from the salary and R500 contribution from the employer. Now this person wants us to start offering it as some of our employees are asking, and further, he says, since its so much in demand and so commonplace and so necessary in these times, he wants us to start selling it to our clients as a add-on or new business product / service, so with any client that takes this medical aid, we will get a monthly amount and if poor when they want to claim or use a doctor visit etc., we will be their admin contact, this will be rather easy as we will merely get our salespeople to mention this to clients and we believe we will be able to generate new revenues and profit from this. Is it permissible / advisable for us to get into such a new business? 2. Secondly, this medical aid product has many similarities to short term insurance / vehicle, mechanical and 3rd party, and is likewise a necessity for some pertinent reasons, least of which transport is now an essential part of life and repairs from even small damages or breakdowns are exorbitantly expensive, to a point that it could compound the problem and leave 1 without a car to use, and compound the debt if the car was purchased on instalment sale... Further, the law is also a major factor that could create extra burdens - for example, if a staff during work hours has an accident, the other party legally has ground to sue the employer, and whether or not the employee/ driver was negligent or not, the employer will be legally liable and has no ground to contest this - the claim simply says. "in the course and scope of employment, your employee / driver was involved in the accident causing loss/ damages." And thats the end of it as its the law, and litigations too to defend it in extreme circumstances is expensive, hence insurance companies each have their own internal legal teams and usually fight between themselves where they have the manpower, and legal expertise as well as budget for this and settle between themselves... further, a client hiring a car, if they have an accident, they do not want to be liable - and some clients say up-front, we want to pay for extra cover or pay a higher rental rate per day, but we do not want to be liable for any repairs or damages whatsoever irrespective of whether we are at fault, negligent or not, this 'super cover' or premium rate rental is almost a norm, and by us not offering it to our clients, creates confusion or suspicion since such insurance, like medical aid has largely become a 'norm'. And just like medical aid, the same insurers will pay a commission for each and every client that we refer to them, 3. Going further, the accountant said that the Mufti / Principal of the darul uloom said in his opinion, the short term insurance cover is more of a necessity than medical aid as, firstly its a legal requirement is SA for any vehicle purchased on instalment sale, further, since the vehicle is an amaanat that is being paid off monthly, the lender/ financier could be negatively impacted and the client could get sued too if or when any damages or accident occurs irrespective of who is at fault or whether there was negligence or not as the realist is with such high costs related to damages and repairs- so this will create a debt burden onto the client driving whilst he may not even be able to pay for repairs, instalments as well as the other party - with amounts getting so high from even a seemingly small accident, it could be a very long time to get free of the zulm costs, charges and legal fees. Please advise if short term insurance has any similar allowance as medical aid in the current circumstances, and if its ok to refer our clients and earn a commission on this?
Answer
1) In the Shariah there is a principle: "Dire need legalizes prohibitions." This principle is based on the Qur'aanic Aayat which makes permissible pork in cases of dire need when there is no alternative food available for a person starving and on the verge of death.
This principle is regulated by another principle of the Shariah, viz. "The legalized prohibition will be permissible only to the degree of absolute need." Thus, it is not permissible to keep pork in freezers for future use in places where people are starving and dying of hunger.
In these times, due to the real need, many Ulama have issued the fatwa of permissibility for medical aid. The government hospitals are deplorable and torturous. Medical costs in the private sector are so extortively and exploitingly high and blood-sucking that it would not be an exaggeration to say that doctors are butchers created and destined for Jahannam.
Since haraam medical aid may be availed of to the degree of need, it remains haraam to set it up as a business to make money. It is just not permissible to make profit from selling pork and carrion. Medical aid is insurance, hence it is haraam spiritual carrion which may not be the subject of making money. It may be used only to the degree of absolute need.
Another example is photography. Due to the real need, taking passport and identity photos is permissible. But this permissibility does not halaalize opening a studio for photography and making money from haraam photography.
2) One haraam act may not be based on another haraam act for transferring the first haraam act's acquired permissibility to the second haraam act. Transference of a ruling whether permissibility or prohibition, halaal or haraam, is subject to the logical reasoning (Qiyaas) process of the Shariah. There are conditions for valid transference of rulings.
It may not be argued that since medical aid is decreed lawful due to need, car insurance too is halaal. If the basis on which medical aid is proclaimed halaal is found to exist in car insurance, then the latter will be permissible. But this permissibility will not be because medical aid is permissible. Its permissibility will be on the basis of the Shariah's principle of Dhuroorat (Dire Need).
Thus, if there is a real need in the car insurance you have described, it will be permissible to the degree of need.
3) If 'short-term insurance' is truly a 'legal necessity', that is, it will be a criminal offence to abstain from it, then this one factor will suffice for permissibility. Since this factor is adequate, there is no need for the Mufti to traverse beyond its confines and to introduce figments of opinion. The 'amaanat' argument is baseless.
It is haraam to earn a commission from a haraam act rendered permissible temporarily. It should be understood that if the dire need which is the basis for permissibility disappears, then the original ruling of haraam will return.
- Source
- themajlis.co.za
- Published in
- The Majlis Vol 27 No 06
- PDF page
- 1
Appears under MEDICAL AND VEHICLE INSURANCE (approximate).