I would like to ask on behalf of my freind who is working in a medical insurance company.
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:
Assalamualaikum brother burhan
would like to ask on behalf of my freind who is working in a medical insurance
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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 none worthy of worship but Allah Alone, and we bear witness that Muhammad (saws) is His slave-servant and the seal of His Messengers.
Dear and Beloved Brother in Islam, it is not that the system or concept of ‘insurance’ in its essence which has been declared haraam in Islam; but what Allah and His Messenger (saws) have specifically and categorically declared absolutely forbidden and haraam is the concept of ‘riba’.
Allah says in the Holy Quran Chapter 2 Surah Baqarah verse 274-276:
But those who devour ‘riba’ become like the one whom Shaitaan has bewitched and maddened by his touch. They have been condemned to this condition because they say, “Trade is just like ‘riba”, whereas Allah has made trade halaal and ‘riba’ haraam. Henceforth, if one abstains from taking ‘riba’ after receiving this admonition from his Lord, no legal action shall be taken against him regarding the ‘riba’ he had devoured before: his case shall ultimately go to Allah. But if one repeats the same crime even after this, he shall go to Hell, where he shall abide for ever! Allah deprives ‘riba’ of all blessing and develops charity, and Allah does not like an ungrateful, sinful person.
Allah says further in the Holy Quran Chapter 2 Surah Baqarah verse 278:
O Believers!, fear Allah and give up that ‘riba’ which is still due to you, if you are true believers. But if you do not do so, then you are warned of the declaration of war against you by Allah and His Messenger!
Allah says in the Holy Quran Chapter 4 Surah Nisa verse 161:
That they took ‘riba’, although they were forbidden. And that they devoured men’s substance wrongfully. We have prepared for those among them who reject faith a grievous punishment (of Hell Fire)!
Al-Tirmidhi Hadith 2829 Narrated by Ali ibn AbuTalib
Ali heard Allah's Messenger (saws) invoke the curse of Allah on those who took usury, those who paid it, those who recorded it, and those who refused to give sadaqah.
There is absolutely no doubt that conventional insurance is based on the system and concept of ‘riba’, and even though one might not be involved himself in consuming ‘riba’, their working in such institutions would make them an accomplice in what has clearly been declared forbidden by Allah and His Messenger (saws). Thus if one works in any organization whose main source of income is from ‘riba’, or one facilitates or helps further the concept and system based on ‘riba’, it would be safe to assume that one would bear an appropriate share and burden of the sin of indulging in the ‘haraam’. And Allah Alone Knows Best.
It would be absolutely lawful for a believer to work in an interest-free Shariah compliant insurance company whose transactions are devoid of the evil of ‘riba’.
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,