Dr.Monzer Kahf, a prominent economist and counselor states: My opinion is to follow what the late Shaikh Mustafa Zarka (Died 1999) said that all kinds of insurance contracts offered by companies that seek profits and by mutual companies are permissible provided two conditions are together satisfied: 1) the contract is not based on interest and 2) the object of the contract is permissible (for instance, it is not permissible to ship or insure liquor).

Accordingly, health insurance is permissible to offer, to buy and to manage. The only reservation I may have about working in or managing a health insurance company is: some of them may have a lot of reserves that they invest on interest. Thus working in the investment department of such a company may raise a serious problem.

On the other hand we may hear other two opinions from respected scholars, though I don’t agree with their argument. 1) only cooperative donation-based insurance is permissible and 2) insurance is prohibited all together.”