The Permissibility of Hospital and Accident Insurance in the Absence of Takaful: An Islamic Perspective #
Original Question:
Is it permissible to have hospital & accident insurance, considering concerns raised about its permissibility?
Response:
Currently, there is no takaful (Islamic insurance) product available in Singapore specifically for hospital and accident coverage. In light of this, the religious authority in Singapore has left it to individuals to decide which insurance product best suits their needs. You can find more information on the stance of our religious authority here.
We recognize the importance of having hospital and accident insurance to protect against unforeseen events that may lead to hospitalization and significant medical expenses. This aligns with Islamic teachings, which emphasize the need to take precautions and put in effort before placing trust in Allah (tawakkal) and to preserve the five higher objectives (maqasid) of Shariah: faith, life, intellect, lineage, and wealth.
Applying this to hospital and accident insurance:
- Taking Precautions:
While saving money in Islamic banks and investing proceeds is encouraged, hospital bills in certain situations may far exceed one’s available assets. Currently, no investment option can rapidly increase asset value to cover such costs. In the absence of takaful, resorting to conventional insurance becomes a necessary measure. - Preserving Maqasid:
In the event of an accident that leads to prolonged hospitalization, the resulting medical bills can be overwhelming. These costs, along with potential loss of income and additional expenses, can deplete savings quickly. This situation can harm an individual’s wealth, family, and life, making it difficult to sustain themselves and their dependents. Therefore, our Islamic principles suggest that conventional insurance, although typically viewed as unlawful due to non-compliance with Shariah in its structure, may be acceptable in the absence of a takaful alternative in Singapore.
Islam, as a flexible religion, allows exceptions to original rulings in cases of necessity while maintaining the integrity of its principles. This is based on the Islamic legal maxim: “When in a predicament, facilitation (rukhsah) is given. When the predicament ceases to exist, then it returns to the original ruling.”
Given Singapore’s unique circumstances, we lean towards allowing rukhsah or facilitation in financial matters related to insurance, provided that the decision is made with careful consideration of the maslahah-mudarat (benefits and harms) and adheres to Shariah guidelines. This approach preserves the sanctity of Shariah while addressing the practical realities of our context.
We hope that, when takaful products become available in Singapore, the community will gradually transition to them.
Finally, we advise everyone to approach such matters with caution, ensuring that decisions are based on individual necessity to seek Allah’s pleasure (redha). By striving for lawful means and seeking Allah’s approval, our affairs will be blessed and made easier by His bountiful sustenance.
As Allah SWT says in Surah al-Talaq, verses 2 and 3: “And whoever fears Allah – He will make for him a way out (2) And will provide for him from where he does not expect (3).”
Allah knows best.
