Question
With the rising cost of medication, the overpopulated government hospitals and ridiculous prices of private hospitals is it allowed to take out a hospital plan?
Answer
Our Fatwa department still maintains the view that medical insurance whether referred to as medical aid or hospital plan is impermissible due to it comprising of the element of Riba (interest) and gambling.
Yes, if the hospital plan refers to a pure savings account where funds are saved for future medical expenses then there is no harm to subscribing to such a plan. This will obviously mean that you are only entitled to use that amount of money that you have saved (like a bank savings account) and nothing more. On the other hand, if you never use the funds, then you should be entitled to withdraw your total savings as well.
Checked and Approved By:
Mufti Muhammed Saeed Motara Saheb D.B.