Category: Business Matters
Fatwa#: 39487
Asked Country: Australia

Answered Date: Jan 24,2018

Title: Working as a learning and develop person for an insurance company

Question

Is working as a learning and develop person for an insurance company allowed. My job will entail transient and developing the soft skills and the technical skills.

Answer

In the Name of Allaah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

Shariah has emphasized on earning halaal income. Rasulullaah (Sallallaahu ‘alaihi wasallam) said,

طَلَبُ كَسْبِ الْحَلَالِ فَرِيضَةٌ بَعْدَ الْفَرِيضَةِ[1]

Translation: “Seeking halaal earning is an obligation after the primary obligations (such as salaah, zakaah, etc.).” (Sunan Bayhaqi 11695)

We understand from your query that you enquire regarding working as a trainee at an insurance firm.

In principle, insurance is impermissible and therefore it is not permissible to work at an insurance firm.

For further details on the prohibition of insurance, you may refer to footnote (2) or the following link:

http://askimam.org/public/question_detail/39379 [2]

 

And Allaah Ta’aala Knows Best

Muajul I. Chowdhury

 

Student, Darul Iftaa

New York, USA

 

Checked and Approved by,
Mufti Ebrahim Desai.

 



[1]  (السنن الكبرى للبيهقي 6/ 211 حديث 11695) (شعب الايمان 8367) (معجم ابن الأعرابي 1167) 

أَخْبَرَنَا عَلِيُّ بْنُ أَحْمَدَ بْنِ عَبْدَانَ , ثنا أَحْمَدُ بْنُ عُبَيْدٍ الصَّفَّارُ , ثنا إِبْرَاهِيمُ بْنُ إِسْحَاقَ السَّرَّاجُ , ثنا يَحْيَى بْنُ يَحْيَى , أنبأ عَبَّادُ بْنُ كَثِيرٍ , عَنْ سُفْيَانَ الثَّوْرِيِّ عَنْ مَنْصُورٍ عَنْ إِبْرَاهِيمَ عَنْ عَلْقَمَةَ عَنْ عَبْدِ اللهِ قَالَ: قَالَ رَسُولُ اللهِ صَلَّى اللهُ عَلَيْهِ وَسَلَّمَ: " طَلَبُ كَسْبِ الْحَلَالِ فَرِيضَةٌ بَعْدَ الْفَرِيضَةِ " تَفَرَّدَ بِهِ عَبَّادُ بْنُ كَثِيرٍ الرَّمْلِيُّ، وَهُوَ ضَعِيفٌ أَخْبَرَنَا أَبُو عَبْدِ اللهِ الْحَافِظُ قَالَ: قَرَأْتُ بِخَطِّ أَبِي عَمْرٍو الْمُسْتَمْلِي، سَمِعْتُ أَبَا أَحْمَدَ الْفَرَّاءَ يَقُولُ: سَمِعْتُ يَحْيَى بْنَ يَحْيَى يُسْأَلُ عَنْ حَدِيثِ عَبَّادِ بْنِ كَثِيرٍ فِي كَسْبِ الْحَلَالِ قَالَ: قَالَ رَسُولُ اللهِ صَلَّى اللهُ عَلَيْهِ وَسَلَّمَ، قَالَ: إِنْ كَانَ قَالَهُ

 

[2]There are three prohibited elements found in conventional insurance:

  1.                      i.     Gambling:

In the cited example, if A takes out an insurance policy, and pays a monthly premium, there is a possibility that he may not meet up in an accident. In that case, the insurance company benefits from the monthly premium. If he does meet up in an accident, the insurance company makes a payout. The company will lose out. At the time of entering the contract, the possibility of losing one’s money or gaining is possible. This is clearly gambling which is expressly prohibited in the Qur’aan. Allaah Ta’aala says:

يَسْأَلُونَكَ عَنِ الْخَمْرِ وَالْمَيْسِرِ قُلْ فِيهِمَا إِثْمٌ كَبِيرٌ وَمَنَافِعُ لِلنَّاسِ وَإِثْمُهُمَا أَكْبَرُ مِنْ نَفْعِهِمَا

Translation: They inquire from you in regards to wine and gambling. Say: In both there is great sin, and some benefits for people. And their sin is greater than their benefit.”

(Surah Al-Baqarah, v. 219)

 

 

  1.                    ii.     Interest:

In the above example, if A takes out an insurance policy, and pays a monthly premium, and thereafter meets up in an accident, the insurance company will make a payout which may be more than the monthly premium paid by A. This is clearly interest which is expressly prohibited in the Qur’aan. Allaah Ta’aala says:

الَّذِينَ يَأْكُلُونَ الرِّبَا لَا يَقُومُونَ إِلَّا كَمَا يَقُومُ الَّذِي يَتَخَبَّطُهُ الشَّيْطَانُ مِنَ الْمَسِّ ذَلِكَ بِأَنَّهُمْ قَالُوا إِنَّمَا الْبَيْعُ مِثْلُ الرِّبَا وَأَحَلَّ اللَّهُ الْبَيْعَ وَحَرَّمَ الرِّبَا فَمَنْ جَاءَهُ مَوْعِظَةٌ مِنْ رَبِّهِ فَانْتَهَى فَلَهُ مَا سَلَفَ وَأَمْرُهُ إِلَى اللَّهِ وَمَنْ عَادَ فَأُولَئِكَ أَصْحَابُ النَّارِ هُمْ فِيهَا خَالِدُونَ (275) يَمْحَقُ اللَّهُ الرِّبَا وَيُرْبِي الصَّدَقَاتِ وَاللَّهُ لَا يُحِبُّ كُلَّ كَفَّارٍ أَثِيمٍ (276) إِنَّ الَّذِينَ آمَنُوا وَعَمِلُوا الصَّالِحَاتِ وَأَقَامُوا الصَّلَاةَ وَآتَوُا الزَّكَاةَ لَهُمْ أَجْرُهُمْ عِنْدَ رَبِّهِمْ وَلَا خَوْفٌ عَلَيْهِمْ وَلَا هُمْ يَحْزَنُونَ (277) يَاأَيُّهَا الَّذِينَ آمَنُوا اتَّقُوا اللَّهَ وَذَرُوا مَا بَقِيَ مِنَ الرِّبَا إِنْ كُنْتُمْ مُؤْمِنِينَ (278) فَإِنْ لَمْ تَفْعَلُوا فَأْذَنُوا بِحَرْبٍ مِنَ اللَّهِ وَرَسُولِهِ وَإِنْ تُبْتُمْ فَلَكُمْ رُءُوسُ أَمْوَالِكُمْ لَا تَظْلِمُونَ وَلَا تُظْلَمُونَ (279) وَإِنْ كَانَ ذُو عُسْرَةٍ فَنَظِرَةٌ إِلَى مَيْسَرَةٍ وَأَنْ تَصَدَّقُوا خَيْرٌ لَكُمْ إِنْ كُنْتُمْ تَعْلَمُونَ (280) وَاتَّقُوا يَوْمًا تُرْجَعُونَ فِيهِ إِلَى اللَّهِ ثُمَّ تُوَفَّى كُلُّ نَفْسٍ مَا كَسَبَتْ وَهُمْ لَا يُظْلَمُونَ (281)

Translation: Those who consume interest cannot stand [on the Day of Resurrection] except as one stands who is being beaten by Satan into insanity. That is because they say, "Trade is [just] like interest." But Allaah has permitted trade and has forbidden interest. So whoever has received an admonition from his Lord and desists may have what is past, and his affair rests with Allaah. But whoever returns to [dealing in interest or usury] - those are the companions of the Fire; they will abide eternally therein.

Allaah destroys interest and gives increase for charities. And Allaah does not like every sinning disbeliever.

Indeed, those who believe and do righteous deeds and establish prayer and give zakaah will have their reward with their Lord, and there will be no fear concerning them, nor will they grieve.

O you who have believed, fear Allaah and give up what remains [due to you] of interest, if you should be believers.

And if you do not, then be informed of a war [against you] from Allaah and His Messenger. But if you repent, you may have your principal - [thus] you do no wrong, nor are you wronged.

(Surah Al-Baqarah v. 275-281)

 

Sayyiduna Abdullaah ibn Mas’ood (Radhiyallaahu ‘anh) narrates,

لعن رسول الله صلى الله عليه وسلم آكل الربا وموكله وشاهده وكاتبه

Translation: “Rasulullaah (Sallallaahu ‘alaihi wasallam) has cursed the one who consumes interest, the one who pays it, the one who witnesses it and the one who records it.”

(Abu Dawood 3333, Nasaai 5105, Muslim 1598)

 

  1.                   iii.     Uncertainty:

In the quoted example, if A takes out an insurance policy, and pays a monthly premium, there is a possibility that he may or may not meet up in an accident. If he meets up in an accident, he benefits and if he doesn’t then the insurance company benefits from the monthly premium. A pays the monthly premium for an uncertain future event. This is gharar (uncertainty) which is prohibited. Sayyiduna Abu Hurairah (Radhiyallaahu ‘anh) narrates:

نهى رسول الله صلى الله عليه وسلم عن بيع الحصاة، وعن بيع الغرر.[2]

Translation: “Rasulullaah (Sallallaahu ‘alaihi wasallam) forbade transactions determined by throwing stones, and transactions which involve uncertainty.”

(Muslim 1513)

 

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