bluecross.ca Features and Offerings

Bluecross.ca offers a comprehensive suite of insurance products designed to cater to various Canadian needs. They specifically highlight:

• Travel Insurance: Positioned as “Canada’s #1 travel insurance,” they emphasize flexibility and affordability for exploring Canada or the world.
• Health Benefits: Plans tailored for specific care needs, including prescriptions, wellness, dental, and vision.
• Group Benefits: Solutions for businesses of all sizes, from local ventures to national organizations.
• Life Insurance: Coverage aimed at protecting loved ones and ensuring financial health.

These offerings are typical of a large insurance provider, addressing common financial risks that individuals and families face. They also mention the “Blue Advantage®” program, which allows members to save on medical and vision care by presenting their Blue Cross identification card at participating providers, eliminating the need for receipts. This is a practical benefit that adds convenience for members.

The Problematic Nature of Conventional Insurance

From an Islamic financial perspective, the services offered by Bluecross.ca, being conventional insurance products, fall under the category of non-permissible transactions due to two primary reasons: Riba (Interest) and Gharar (Excessive Uncertainty).

• Riba (Interest): Conventional insurance companies invest the premiums collected from policyholders, often in interest-bearing instruments (bonds, fixed deposits, etc.). The profits generated from these interest-based investments contribute to the company’s reserves and ultimately, its ability to pay out claims and generate profit for shareholders. Islam strictly prohibits earning or paying interest. Even if the policyholder doesn’t directly receive interest, being part of a system that thrives on interest is a concern.
• Gharar (Excessive Uncertainty): An insurance contract is inherently based on future uncertain events. While a degree of uncertainty is natural in life, the excessive uncertainty in conventional insurance contracts, where the precise amount of payout (if any) and the timing are unknown at the time of contract formation, makes it problematic. Islam encourages transparency and clarity in contracts. The contract also often involves elements of speculation rather than genuine cooperation.

The concept of insurance in Islam is addressed through Takaful, which is a cooperative system based on mutual assistance and donations. In Takaful, participants contribute to a common fund, and these contributions are used to cover the losses of other participants. Any surplus is often shared among participants or used for charitable purposes. The funds are managed in a Sharia-compliant manner, avoiding interest-based investments and speculative dealings. Bluecross.ca, by operating under the conventional insurance model, does not align with these Sharia principles.

The Blue Advantage® Program

The Blue Advantage® program, which offers immediate savings at participating providers, is designed to enhance member value. It’s a direct discount mechanism, which on the surface seems like a benefit. However, when integrated into the overall framework of a conventional insurance policy, it remains part of a system that is fundamentally questionable from an Islamic viewpoint. While the discount itself isn’t problematic, it’s a feature of a product that is. In Sharia-compliant alternatives like Takaful, similar benefits are often structured as part of a cooperative risk-sharing model, ensuring that the entire transaction remains ethically sound.

Bluecross.ca Review & First Look