I have been working in Financial Services, advising clients on Pensions, Investments and Insurance – Life / Building & contents as well as commercial insurance for 15 years, but my family has always been unhappy. Can you tell me if I am able to work in this job, as I have been offered a job for another large employer, an insuance company? Or would it be best in I leave this industry, as I don’t want to work in a haraam job, or one that does not give burkat and happiness. Although with the help of Allah, he was always helps me, and we do have a good living, and we give to charity/ poor, andhave prayed hajj, and I practice namaaz daily.
In the name of Allah, the most Beneficent, the most Merciful.
Briefly, it should be understood that all types of insurances are impermissible for three reasons:
- Interest/ Usury
- There is an element of deception
- Qimar (gambling)
The reason for it being interest is that insurance is the sale of money for money of a greater or lesser amount with a delay in one of the payments. Insurance companies take people’s money and promises to pay them more or less when an accident happens. This is riba, which is haram in Islam.
(Hujjatullahi Baaligah p.98 v.2)
In the Holy Quran Allah (SWA) has said:
“Allah has permitted transactions and has forbidden riba” (Surah Al Baqarah v.275)
The Prophet of Allah (Sallallahu Alahi Wasalam) has cursed the person who takes interest, who gives interest and who writes it and who witnesses it.”
(Mishkaatul-Masabeeh p.244 v.1)
“To take dirham of interest knowingly is worse than committing adultery 36 times.” (Mishkaatul-Masabeeh p.246 v.1)
Also in insurance policies there is an element of deception, which Islamicaly, is termed as garar.
- The amount to be paid is unknown
- The time it will occur is also unknown.
The Prophet of Allah (Sallallahu Alahi Wasalam) has forbidden deception and uncertainty in transactions. (Sunan Tirmizi p.233 v.1)
All forms of insurances are based on uncertainty. The reason why you are being insured must have a possibility of happening or not happening. For example, when an accident happens and the extent of the damage caused.
Finally, the third reason for it being impermissible is because there is an element of qimar (chancing). Insurance policies require payment of money, thereafter if the following mishaps were to occur, a payment will be made. This is pure gambling, thus forbidden in Islam.
The definition of Gambling as stated in Raddul Muhtar;
“Gambling is a dealing in which there is a chance of gain and loss. (P577 V.9)
With regards to your question, if the work involves you in dealing directly with interest based transactions then the work will be considered unlawful. If it just involves in giving advice or helping a customer taking up an insurance policy, then the job would still be considered unlawful as one is assisting someone in sin.
Allah (SWA) in the Holy Quran has said:
“Do not assist in each other in sin and transgression.” (Surah Maaidah v.2)
Furthermore, most likely the salary they are giving to you will be from unlawful means, thus, it would not be permissible for you to take up that job.
It will be necessary for you to look for a halal job and when that is possible it will be necessary for you to leave that job. Until then you can work there and seek Istighfaar and repentance from Allah. (Jadeed Muamalat Ke Sharee Ahkaam p.176 v.1)
Only Allah Knows Best
Mohammed Tosir Miah
Darul Ifta Birmingham