Mu' meneen Brothers and Sisters,

As Salaam Aleikum wa Rahmatullahi wa Barakatuh.  (May Allah's Peace, Mercy and Blessings be upon all of you)

One of our brothers/sisters has asked this question:

Assalam Walaikum,

I work in an life insurance company as a manager in IT dept and maintain the computer systems there.I want to know whether working in an insurance company is allowed. Also what is the comment on insurance policy (life & non life) in eyes of Islamic Shariah.

Waiting for response

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Answer:

Insurance life and non life

In the name of Allah, We praise Him, seek His help and ask for His forgiveness. Whoever Allah guides none can misguide, and whoever He allows to fall astray, none can guide them aright. We bear witness that there is no one (no idol, no person, no grave, no prophet, no imam, no dai, nobody!) worthy of worship but Allah Alone, and we bear witness that Muhammad (saws) is His slave-servant and the seal of His Messengers.

Beloved brother in Islam, it is not the concept of insurance per se which is illegal or prohibited in Islam, but rather what is ‘haraam’ and forbidden in Islam is the ‘interest-based’ aspect which is utilized by the conventional insurance companies during their transactions when conducting the insurance business.

Almost all the conventional insurance companies transact their business based on interest, and it is this interest aspect which is deemed absolutely haraam in Islam. But Alhamdolillah, today there are several Islamic Insurance Institutions which provide insurance cover on various aspects based on Shariah principles, and there is absolutely no harm in seeking insurance from such ‘interest-free’ institutions.

Your Question: Also what is the comment on insurance policy (life & non life) in eyes of Islamic Shariah.
The absolute majority of the scholars are of the opinion that ‘life-insurance’ is impermissible in Islam because unlike other calamities and eventualities which may or may not effect man, death is one thing that is Decreed for every son of Adam by their Lord and Creator, Allah Subhanah.

The scholars and jurists in Islam are of the opinion that non-life insurance policies are permissible, provided one transacts and documents such policies which honor the principles of Shariah.

Your Question: I want to know whether working in an insurance company is allowed.

One cannot say with absolute conviction that every person who works in a conventional interest-based insurance company devours or consumes interest…thus it would not be accurate that say that their earnings are all ‘haraam’. But without an iota of a doubt, those who work in the conventional interest-based insurance field are obviously involved in promoting something (interest) which has clearly been prohibited by Allah and His Messenger (saws); thus it is expected that they will at least share a part of the burden of the sin. And Allah Alone Knows Best.

Whatever written of Truth and benefit is only due to Allah’s Assistance and Guidance, and whatever of error is of me alone. Allah Alone Knows Best and He is the Only Source of Strength.

Your brother and well wisher in Islam,

Burhan