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:

I am a 32 year old lady who is currently employed by New York Life Insurance company as an agent. My main duites are to solicit customers for buying life insurance. I have noticed that you have provided injunctions against life insurance in your web site. My question to you is wether i can continue to work for this company and wether my earnings are HALAL. It might be very difficult for me to find another job. I am a mother of two children and i need the money earned from this job very badly. Kindly advise in the light of the Quran and the Sunnah of our beloved prophet (S.A.W.S)

(There may be some grammatical and spelling errors in the above statement. The forum does not change anything from questions, comments and statements received from our readers for circulation in confidentiality.)

Answer:

Working in insurance company

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.

The present conventional insurance format as practiced in the modern world is predominantly interest-based, and Allah and His Messenger (saws) have clearly forbidden the concept of ‘riba’ and interest in Islam. Besides, a believer is commanded to put his trust in Allah Subhanah; and with the present concept of conventional insurance, one puts his trust on the insurance he has taken out in case of a calamity.

The concept of Insurance itself is not declared haraam, and there are ways to be Islamically insured in the modern world through one of the many Islamic Insurance Companies, who adhere to the principles laid down in the Shariah.

When Allah and His Messenger (saws) have declared something forbidden, then to derive any income from such an establishment would also be forbidden. Thus, if one is seeking employment, he should abstain from seeking work in a conventional Insurance company. But if one is already working in an insurance company, it would be prudent for him to seek repentance of Allah, and search for another place to employ his talents; and when he finds an appropriate job, resign from the present Insurance job. And if one does this move purely for the sake of Allah Subhanah, it is expected that the Bounteous Lord will enrich him from His Infinite resources and give him a huge reward for his striving to obey the commands of Allah and His Messenger (saws).

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

Your Brother in Islam,

Burhan