Q: I recently accepted a job offer. With the contract papers, there was a form advising that the company could opt me in to private healthcare insurance. It would be free to opt in and benefit from it as it would be classed as a company benefit. However, as it is a company benefit, my employer would have to report it to the HMRC and it would be classed as a ‘taxable benefit’ see https://www.gov.uk/tax-company-benefits/overview for more details).
My questions are as follows:
1) Is the healthcare insurance halal in this context given that I am not paying anything for it?
2) Does the fact that there is some additional tax associated with this benefit make it haram if the answer to 1) is yes.
3) The company also has a group life insurance, whereby if I die whilst in their employ, 3x my salary will be paid out to someone of my choice. This requires no financial commitment on my part and is simply available to me. Please advise on the permissibility.
الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب .
A: 1. If you are opted in to the private healthcare insurance then such ‘benefit’ is effectively an indeterminate part of your salary. Whilst you may not have to make any additional payment or suffer any deduction besides any tax, such benefit is still in lieu of the services you render to your employer. Whilst the benefits remain indeterminate, i.e., whether and to what extent you might benefit under such cover, due to customary practice and the absence of dispute such benefits appear to be permissible and any uncertainty is tolerated.
2. The additional tax associated with this benefit is simply an indication that it is part of your salary. It does not make the benefit haram.
3. The group life insurance as described in the question is also effectively a contingent part of your salary which will be paid in the event certain conditions are met. Due to customary practice and the absence of dispute such group life insurance also appears to be permissible and any uncertainty is tolerated. For further reading see: http://alqalam.org.uk/fatawa/can-i-take-medical-insurance-as-part-of-my-salary-package/