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The question

Is students' contribution to the "School and University Medical Cooperative" which treats accidents and follows up on illnesses considered prohibited insurance?

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Source: FtawySummary from Ftawy's records · added here Sep 2, 20261 min readAlso available in العربية
The answer

The distinction between commercial and cooperative insurance can be made based on the following points:

- Commercial Insurance: This is a contract based on compensation, where the insurance company undertakes to indemnify the insured in return for insurance premiums. The surplus goes to the company, and any deficit is borne by it. It relies on the company profiting from the insurance premiums themselves, which leads to high premiums. - Cooperative (Takaful) Insurance: This is based on cooperation and donation, and the company's role is limited to management. The premiums are placed in separate accounts. The surplus belongs to the insured, which can reduce subsequent insurance premiums. The company takes a fee for its management and a share of the profits from investing the funds as a mudarib (investment manager).

Summary from Ftawy's records · added here

Reviewed by El Fatwa's sharia committee.

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Where this answer came from
Source platform
Ftawy
Original fatwa ID
139789
Added here
. This is when the answer was added to El Fatwa, not the fatwa's date.
Text
Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
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Read the full answer on Ftawy