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Employment at an Insurance Company

Question

Someone was working at a bank, he resigned when he found out that it is impermissible to work there. 

Since then he has applied for numerous jobs bit all in vain. 

Recently he was offered to work as a Financial Advisor at ?????? (a life insurance company). 

He wants to know if it is permissible or not or will he be getting himsf I to another Haraam? 

 

Please advise. 

Answer

Insurance companies accrue income via the premiums charged to clients on the policies they have undertaken. These premiums are then gathered in a risk-pool from which claims are paid as they arise. Hence, insurance could simply be explained as the sale of money for money, of a greater or lesser amount, with a deferment in one of the payments. The presence of the following three elements within this business model render insurance impermissible: 

a)     Riba (interest): can defined as a surplus, void of any counterpart, which one of the two contracting/transacting parties receives.

At the time of claiming, the insured party may receive more or less than the amount paid in premiums to the insurance company. 

b)    Qimaar (gambling): To pay for something which a person is unsure of acquiring.

Premiums are paid on the agreement that a claim will be paid out if and when an event occurs. Furthermore, the insurance company reserves the right not to pay out the claim if it deems that the client is in contravention of any of the clauses in the policy.

c)     Gharar (uncertainty): A transaction based on uncertainty.

The client pays money (the premium) for receiving an uncertain amount of money at a deferred, uncertain time and event in the future. 

Employment at an insurance company would result in the aiding and promotion of sin, consequently rendering it being impermissible to undertake employment at such an institution.

Obedience to the Commands of Allah Ta’aala and refraining from that which has been forbidden, along with continuous Dua to Allah Ta’aala will Insha-Allah result in ease in the acquisition of Rizq (sustenance). Paying particular attention to imbibing Taqwa (the fear of Allah Ta’aala) and the performance of Salaah (with Jamaat in the Masjid for males) will invoke the Divine Promise of Allah Ta’aala to provide sustenance from sources a person would never perceive.

We encourage the person concerned to remain steadfast in his endeavour to abstain from impermissible sources of income. No amount of unlawful worldly benefit is worth the torment which could possibly have to be endured in the Aakhirah.

Checked and Approved By:

Mufti Muhammed Saeed Motara Saheb D.B.

References

الَّذِينَ يَأْكُلُونَ الرِّبَا لَا يَقُومُونَ إِلَّا كَمَا يَقُومُ الَّذِي يَتَخَبَّطُهُ الشَّيْطَانُ مِنَ الْمَسِّ ذَٰلِكَ بِأَنَّهُمْ قَالُوا إِنَّمَا الْبَيْعُ مِثْلُ الرِّبَا وَأَحَلَّ اللَّهُ الْبَيْعَ وَحَرَّمَ الرِّبَا فَمَن جَاءَهُ مَوْعِظَةٌ مِّن رَّبِّهِ فَانتَهَىٰ فَلَهُ مَا سَلَفَ وَأَمْرُهُ إِلَى اللَّهِ وَمَنْ عَادَ فَأُولَٰئِكَ أَصْحَابُ النَّارِ هُمْ فِيهَا خَالِدُونَ (البقرة: 275)

عن جابر رضي الله عنه قال لعن رسول الله صلى الله عليه وسلم آكل الربا وموكله وكاتبه وشاهديه وقال هم سواء (صحيح مسلم، الرقم: 106)

 الربا هو الفضل المستحق لأحد المتعاقدين في المعاوضة الخالي عن عوض شرط فيه (الهداية 3/78)

  لأن الربا هو الفضل الخالي عن العوض رد المحتار (5/ 169) HM Saeed

يَا أَيُّهَا الَّذِينَ آمَنُوا إِنَّمَا الْخَمْرُ وَالْمَيْسِرُ وَالْأَنصَابُ وَالْأَزْلَامُ رِجْسٌ مِّنْ عَمَلِ الشَّيْطَانِ فَاجْتَنِبُوهُ لَعَلَّكُمْ تُفْلِحُونَ (المائدة:٩٠)

يَسْأَلُونَكَ عَنِ الْخَمْرِ وَالْمَيْسِرِ قُلْ فِيهِمَا إِثْمٌ كَبِيرٌ وَمَنَافِعُ لِلنَّاسِ وَإِثْمُهُمَا أَكْبَرُ مِن نَّفْعِهِمَا وَيَسْأَلُونَكَ مَاذَا يُنفِقُونَ قُلِ الْعَفْوَ كَذَٰلِكَ يُبَيِّنُ اللَّهُ لَكُمُ الْآيَاتِ لَعَلَّكُمْ تَتَفَكَّرُونَ (البقرة: 219)

عَنْ أَبِي هُرَيْرَةَ، قَالَ نَهَى رَسُولُ اللَّهِ صلى الله عليه وسلم عَنْ بَيْعِ الْحَصَاةِ وَعَنْ بَيْعِ الْغَرَرِ ‏ (صحيح مسلم)

وَلَا تَعَاوَنُوا عَلَى الْإِثْمِ وَالْعُدْوَانِ (المائدة:2)

وَمَنْ يَتَّقِ اللَّهَ يَجْعَلْ لَهُ مَخْرَجًا وَيَرْزُقْهُ مِنْ حَيْثُ لَا يَحْتَسِبُ (الطلاق: 2-3)

وَأْمُرْ أَهْلَكَ بِالصَّلَاةِ وَاصْطَبِرْ عَلَيْهَا  لَا نَسْأَلُكَ رِزْقًا  نَحْنُ نَرْزُقُكَ  وَالْعَاقِبَةُ لِلتَّقْوَىٰ (طه: 132)

وقوله: لا نَسْئَلُكَ رِزْقاً نَحْنُ نَرْزُقُكَ يَعْنِي إِذَا أَقَمْتَ الصَّلَاةَ أَتَاكَ الرِّزْقُ مِنْ حَيْثُ لَا تَحْتَسِبُ، كَمَا قَالَ تَعَالَى: وَمَنْ يَتَّقِ اللَّهَ يَجْعَلْ لَهُ مَخْرَجاً وَيَرْزُقْهُ مِنْ حَيْثُ لَا يَحْتَسِبُ [الطَّلَاقِ: 2- 3] وَقَالَ تَعَالَى: وَما خَلَقْتُ الْجِنَّ وَالْإِنْسَ إِلَّا لِيَعْبُدُونِ- إلى قوله- إِنَّ اللَّهَ هُوَ الرَّزَّاقُ ذُو الْقُوَّةِ الْمَتِينُ [الذاريات: 56- 58] ولهذا قال: لا نَسْئَلُكَ رِزْقاً نَحْنُ نَرْزُقُكَ.

“If you establish Salah, sustenance will come to you from avenues you did not anticipate” (Tafsir Ibn Kathir, Surah: Taha, Verse: 132)

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