We are the staff of a certain company. The company`s management will provide life insurance to all of us as an employer-provided benefit. Actually, the company will pay all insurance premiums and fees, and we will not be liable for anything at all. What is the ruling of Sharia on this insurance? And, is the employee benefitting from this insurance liable for anything from the perspective of Sharia?
All perfect praise be to Allah the Lord of the Worlds. May His peace and blessings be upon our Prophet Mohammad and upon all his family and companions.
All forms of commercial insurance contracts are forbidden as they involve risk, gambling, and eating up people's wealth unjustly. Therefore, it is forbidden to form such contracts if the employee has a say in this matter.
However, if the above company provides life insurance for all its employees without deducting any portion from their salaries, then an employee or his heirs are allowed to benefit from the insurance funds paid to them by the insurance company. And Allah the Almighty knows best.