Putting money in an LIC policy

Answered according to Hanafi Fiqh by

Q: My parents may have not been aware of LIC policy where we send money monthly and after many years we get back money with some extra amount. Now that extra amount is obviously interest (riba). As my parents have started that, they say that at last they will put the extra money in charity. Till then, we would be sending money.

Now because of us, the company would have to give extra money. Are we then responsible for his sin? Or we will be getting the same sin for him? In Quran ayah its mentioned that whoever eats riba after knowing its haram he will remain in hell forever.

1. Is this sin for us also because of him (company owner) giving us extra money? And due to us taking part in it, the owner would be little encouraged to continue his business. (As its obvious tht if a new customer comes in shop, the owner will be happy and would like to do more buisness) Then if the owner does more buisness and more people join the LIC policy. Now bcz of us many people joined and they may eat riba. Are we gonna get same sin of them (hell forever)?


A: Obviously putting the money into a policy is sinful. You should terminate the policy immediately.

And Allah Ta’ala (الله تعالى) knows best.


Answered by:

Mufti Ebrahim Salejee (Isipingo Beach)

This answer was collected from, where the questions have been answered by Mufti Zakaria Makada (Hafizahullah), who is currently a senior lecturer in the science of Hadith and Fiqh at Madrasah Ta’leemuddeen, Isipingo Beach, South Africa.

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