Q: We are a Saudi institution that is working in the field of trade. We want to establish a company aimed at supporting the coverage of treatment costs and the costs of some surgeries for citizens and other Muslims in the Kingdom. We would like to be enlightened about the way to do this according to the lenient Shari`ah (Islamic law) as a valid alternative to the widely-known health insurance that is organized by commercial insurance companies. We will provide Your Eminence with a presentation of the company's goals and how they are going to be achieved. (Part No. 15; Page No. 303) We hope that you have time to examine them and direct us towards how to accomplish these goals which have become greatly needed by many people bearing in mind the high cost and variety of treatment methods. The following is a statement of the company's goals: the idea behind the company is to achieve cooperation and consolidation through donation in order to meet the health needs of all citizens according to bases consistent with Shari`ah - such as the principle of cooperation to disperse risks. The company's elements are based on the following system: 1- Establishing a fund representing the legal status of the company that is funded by individuals with Shar`y (Islamic legal) personal status. The fund is to contain sums of money on demand to be spent on the needs of subscribers in the fund, including health services and surgeries within the limits that are defined by those in charge of the company. This is to secure the provision of treatment to all subscribers equally and justly without causing a deficit in the fund that may disrupt its goals and the principle of equity in bearing risks for all subscribers. 2- The how-to of financing: A defined annual sum of money, called a share, is to be paid annually by each individual at the beginning of every year. (Part No. 15; Page No. 304) The principle of share independence is applicable to each family member. The contribution of each family member is discretionally defined according to the needs and potential health condition of the individual. The shares of one family member are assembled in one subscription form which cites in detail the value of each individual's share and are assigned one family number. There is a deducted cost in return for opening the form (such as the salary of fund officials) provided it does not exceed 150 riyals per form. 3- The company opens known and advertised bureaus in principal regions of the Kingdom as well as other regions according to the need that is based on the density of subscribers in every region. 4- The company contracts with the best private sector hospitals and treatment centers in all parts of the Kingdom in order to provide every subscription membership form holder with the highest quality services in accordance with health and administrative bases Member between the hospital and the company. 5- The individual (every independent form holder) receives a treatment visit coupon twice a year to any hospital or treatment center. The company assumes all treatment costs incurred by using the coupon, subject to the agreement referred to in the previous clause. (Part No. 15; Page No. 305) Moreover, a family may have no less than 6 and no more than 10 coupons for the same purpose. 6- The company assumes all costs of minor surgeries (to be defined by a medical committee) for every form holder who has paid a subscription fee. 7- The subscriber shall be given the option to have, from the company, coverage for the costs of major surgery within and outside the Kingdom within the limits of no more than 10,000 American dollars and no less than 7,000 American dollars. This entails payment of a sum of money, plus the form price, under the title of major surgery share, which is determined after study. 8- The company undertakes to return 25% of the fund surplus after each annual budget to all subscribers who did not have any treatment services or surgery coverage. The subscriber's right to this percentage is waived if they have used (all or some of) the treatment coupons. 9- The company's budget is issued annually by a legal auditor and is submitted to any subscriber requesting it. (Part No. 15; Page No. 306) 10- After returning the referred-to percentage, the remaining surplus is considered the company's administrative expenses, and salaries of workers and supervisors, including founders, and expenses of any future expansion of services.

A: Ramattan Project for Health Services that is based on the abovementioned clauses is a type of commercial health insurance similar to that organized by commercial insurance companies, regarding which a decree was issued by the Council of Senior Scholars, another by the Islamic Fiqh Academy of the Muslim World League, and a third by the Islamic Fiqh Academy in Jeddah as well as Fatwas of the Permanent Committee for Scholarly Research and Ifta' to the effect of prohibiting all types and forms of commercial insurance, whether it be for life insurance, property insurance or otherwise. Thus, the Committee gave the Fatwa that the idea of Ramattan Bureau for Health Services is not Islamically permissible as it involves Gharar (fraudulent transaction where details about the sold item are unknown or uncertain), risk and unjustly consuming people's money. Allah (Glorified and Exalted be He) says: Help you one another in Al-Birr and At-Taqwâ (virtue, righteousness and piety); but do not help one another in sin and transgression. (Part No. 15; Page No. 307) May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions.