Fatwa: # 41488
Category: Business Matters
Country: South Africa
Date: 15th January 2019

Title

Shariah Compliant funeral cover

Question

As Salaam Imaam,
I am the Director and Founder of Karama Jinaza Cover. After being in a situation in the past where I was unable to bury my father in a dignified manner, witnessing the rising costs in Jinaza's as well as none registered burial societies running away with peoples money, I decided to start an "Islamic burial society" thats ran in a way to comply with the rules within the country as well as those within Islam. 
I have seeked counsel from many a scholar, the MJC (who has not returned a single call or email), Sanha, Niht, Sanzaf and even international Scholars (namely  Dr. Abou El Fadl).
All who have responded have really been a great help, some even helped me address my customers concerns in the below article https://www.jinaza.com/blog/karama-jinaza-cover-is-not-haraam ,but none in the capacity to declare and sign off my business as Shariah Compliant/Halaal. 
I have recently received guidance from Mufti Hashim Casim (Chairman of Sanzaf), who declared my business as Halaal, but is not able to provide me with the formal confirmation. 
Karama Jinaza Cover is an FSP underwritten by Old Mutual. Premiums are kept in Shariah Compliant bank accounts, payouts work on the collection of multiple premiums to cover the Jinaza costs of a premium paying member. 
I am only a start up business but am willing to pay whatever the fee is for the administration to look into the Shariah Compliance/ Halaal standing of my business. Most of my customers have not really cared to ask but I would like peace of mind knowing that I am complying with what is required of me as a Muslim. In my extensive Insurance and Funeral Cover Experience I should be fine, with my Islamic knowledge which is fair or even basic when compared to a Mufti, I have designed it to comply to the best of my knowledge. 
Let me know if you can help me, need any more information to assist or can point me in the right direction
Shukran and JazakAllah

Answer

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

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

Respected Sister in Islam,

It is pleasing to know about your sincere intention to serve the Ummah.

Our Darul Iftaa focuses on engineering Shariah Compliant products to cater the needs of the community.

If we are provided with your company’s complete business model and contracts, we will advise accordingly. You may forward the documents to admin@daruliftaa.net REF: ANAS SHARIEFF.

P.S: WE DO NOT CHARGE. OUR SERVICES ARE OFFERED GRATIS.

And Allah Ta’āla Knows Best

Anas Sharieff Qasmi.

Student Darul Iftaa

Hyderabad, India.

Checked and Approved by,
Mufti Ebrahim Desai.

 

 

 

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