Health insurance

Fatwa no. 21667 Q. Someone has a dispensary and used to conclude contracts with some companies to treat their employees for a specific amount of money per year. The employees of the contracting companies have the choice to go every now and then without a minimum or maximum limit for their visits. Is this contract Islamically valid? I hope Your Eminence will clarify the issue for me. May Allah grant us all success and guide your steps for He is All-Hearing, All-Answering.

A: This is known as Health Insurance and it is one form of commercial insurance which is Muharram (prohibited) according to the decree of the Council of Senior Scholars. May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions.