Answered by Shaykh Muhammad ibn Adam al-Kawthari
I was working in a surveyor & loss adjusting firm for the past two years. We get business from Insurance companies only, to conduct surveys to the damaged items/equipment of the Insured’s, adjust the loss and report to the Insurance company. For that we receive fees from them. Is this haram? Furthermore, i am receiving more opportunity from Insurance companies in Claim Department as claims engineer. Basically, i am an electrical engineer and entered in the Insurance industry accidentally and gained experience for more than two years. Is it allowed for me to continue working in the Insurance industry or i have to change to different field. Pls advise me…
In the name of Allah, Most Compassionate, Most Merciful,
It is always best to avoid working in the insurance industry. Islamically, if one’s job entails being directly involved with any interest-based transaction, then that job would not be permitted.
Working in the claims department as a claims engineer would mean one being directly involved with the various insurance policies that are based on interest (riba) and/or gambling (qimar).
Moreover, the salary paid by companies that deal with all forms of insurances is not lawful (halal). Premiums paid by the policy-holder to the insurance company are based on a transaction of interest and gambling, hence the money comes into the ownership of the insurance company in an unlawful manner. As such, this money would not be Halal to take as one’s wages.
[ Please search SunniPath Answers (http://qa.sunnipath.com) for related answers on insurance and riba ]
And Allah knows best
Muhammad ibn Adam al-Kawthari