Question Summary:
I am an employee in an organization, which also provides health insurance facility…Please let me know if above Insurance benefits provided by my organisation are Halal for my dependants & me?

Question Detail:

I am an employee in an organization, which also provides health insurance facility, Accidental Insurance, and life Insurance to their employees besides other benefits. My organization pays premium to these insurance companies annually.

1) If an employee or his dependant is hospitalised then he is entitled to reimburse in respect of his hospitalisation bills from the organization. For reimbursement of his hospitalisation bills he is required to submit claim form to his organization, which in turns forward it to the insurance company (along with the hospital bills). In a non-emergency case the insurance company pays directly to the hospital and employee is not required to make payment to the hospital.
2) Same in case of Accidental policy, where employee needs to submit claim in case of his accident, if there is any physical permanent disability, also pre-defined amount is paid for No days employee was on leave if disability was not permanent.
3) Pre defined amount is paid to employee’s dependants in case of death of employee under Life Insurance.
 Please let me know if above Insurance benefits provided by my organisation are Halal for my dependants & me? 

Answer :

In the name of Allah, Most Gracious, Most Merciful
Assalaamu `alaykum waRahmatullahi Wabarakatoh
The general ruling regarding insurance policies is that they are not permissible, as they constitute the components of riba (usury) and qimar (gambling), and these are strictly prohibited in Shari’a. Consider the following:
Allah Ta’ala mentions in the Holy Quran:
الذين يأكلون الربا لا يقومون إلا كما يقوم الذي يتخبطه الشيطان من المس ذلك بأنهم قالوا إنما البيع مثل الربا وأحل الله البيع وحرم الربا.
Those who take ribā (usury or interest) will not stand but as stands the one whom the demon has driven crazy by his touch. That is because they have said: “Sale is but like ribā”, while Allah has permitted sale, and prohibited ribā.
(Verse: 2:275)
يا أيها الذين آمنوا اتقوا الله وذروا ما بقي من الربا إن كنتم مؤمنين. فإن لم تفعلوا فأذنوا بحرب من الله ورسوله وإن تبتم فلكم رءوس أموالكم لا تظلمون ولا تظلمون.
O you who believe, fear Allah and give up what still remains of ribā, if you are believers. But if you do not (give it up), then listen to the declaration of war from Allah and His Messenger. However, if you repent, yours is your principal. Neither wrong, nor be wronged.
(Verse: 2:278,279)
يا أيها الذين آمنوا إنما الخمر والميسر والأنصاب والأزلام رجس من عمل الشيطان فاجتنبوه لعلكم تفلحون
O you who believe! Wine, gambling, altars and divining arrows are filth, made up by Satan. Therefore, refrain from it, so that you may be successful.
(Verse: 5:90)
It has been mentioned in the Ahadith of Nabi (Sallahu Alaihi Wasallam):
عن جابر قال لعن رسول الله -صلى الله عليه وسلم- آكل الربا وموكله وكاتبه وشاهديه وقال هم سواء. (رواه مسلم)
It has been mentioned on the authority of Jabir (Radhiyallahu Anhu) that Nabi (Sallallahu Alaihi Wasallam) cursed those who are involved in usury. Whether it is the person who is giving usury, or the person who is receiving it, or the person who is writing the transaction, or the person who is witnessing the transaction. (Muslim)
As far as the insurance facilities mentioned in the query are concerned, we understand that the organisation you are working for is providing these benefits, and the employee does not make any contribution to the premium. On the premise that this understanding is correct, it will be permissible for you to benefit from the insurance facility provided by the organisation. These benefits will be regarded as a gratuity provided by the organisation to the employees, and the ruling will be similar to the bonus given to employees at the end of the year by some organisations. 
However, if the reality of the situation is different from what we have understood, then you could redraft the query explaining the procedure in detail, as the ruling may differ to the abovementioned. 
And Allah knows best
Wassalam
Ml. Abu Yahya,
Student Darul Iftaa
Checked and Approved by:
Mufti Ebrahim Desai
Darul Iftaa, Madrassah In'aamiyyah