I recently got a job offer at financial group (third party) that sells insurance and recruit people to work as well. Meaning, if I recruit someone I get paid some percentage as well as the person who recruited me. There are Muslims who work in this position and I talked to them about it. They told me that there’s a way since we live in the western world, which is called dividend, and I didn’t find it believable.
Assalāmu ʿalaykum waraḥmatullāhī wabrakātuh,
At the outset, I wish and pray that you find a job that fulfils your needs, is wholesome and ḥalāl and that it draws Allah’s closeness for you and your family.
Your question refers:
a. Selling Insurance:
In principle all conventional insurance policies are at its core designed around interest and ribā. Technically theses insurance policies have the elements of ribā and qimār (gambling) in them, both of which are expressly prohibited in Sharīʿah. This renders all these conventional policies impermissible and haram. By selling these policies, a sales agent becomes a direct assistant towards sale and propagation of haram policy. Allah Taʿālā says in this regard,
وَتَعَاوَنُوا عَلَى الْبِرِّ وَالتَّقْوَى وَلَا تَعَاوَنُوا عَلَى الْإِثْمِ وَالْعُدْوَانِ (المائدة: 2)
“Assist one another is righteousness and piety, and do not assist in sin and rancour.” (Quran 5:2)
The curse of usury and interest is well known to the ummah of Rasūlullāh ṣallallāhu ʿalayhi wasallam. Hence, there is not much need for explanation in it. It will be impermissible for one to become an insurance agent.
b. Referral Commission -Dividends
I am unaware of the connection between referral commission and dividend. Please get further information to provide as much clarity on the issue and re-send. InshaʾAllah I will respond then.
However, if your question is about generic referral bonus then the core concept of referral commission or bonus can be made Sharīʿah compliant. But in an insurance company it will still not be permissible.
And Allāh Taʿālā knows best,
Mufti Faisal al-Mahmudi