Fatwa ID: 03045
Answered by: Maulana Mustafa Umar
Assalamu Alaikum Wa Rahmatullah
Is it Jaaiz, Makrooh, Jaaiz ma'lKaraahah, Khilafe Awlaa, Khilafe Wara, Mushtabih, Haraam Ligayrihi, Haraam Li Aynihi to work in an Insurance Company as an agent to Market and Sell Insurance Policies and Packages?
Would the above ruling have an effect on the money earned? Meaning if the actions of an agent on behalf of the company, for example, is Mushtabih Haraam or Makrooh, would it still be possible that the MONEY which is earned could still be considered as KASBUL HALAL or something at least less than KASBU MAALIL HARAAM?
بسم الله الرحمن الرحيم
In the name of Allah, the Most Gracious, the Most Merciful.
Assalamualaikum Wa Rahmatullahi Wa Barakaatuh
According to many contemporary scholars, conventional insurance policies are based on interest [riba] and/or gambling [qimar]. Allah has forbidden interest, “O you who believe! Be afraid of Allaah and give up what remains (due to you) from Ribaa (from now onward) if you are (really) believers. And if you do not do it, then take a notice of war from Allaah and His Messenger but if you repent, you shall have your capital sums. Deal not unjustly (by asking more than your capital sums), and you shall not be dealt with unjustly (by receiving less than your capital sums).” [al-Baqarah 2:278-279] Allah has also clearly forbidden gambling, “O you who believe! Intoxicants (all kinds of alcoholic drinks), gambling, Al-Ansab (stone altars for sacrifices to idols etc), and Al-Azlam (arrows for seeking luck or decision) are an abomination of Shaitan’s (Satan) handiwork. So avoid (strictly all) that (abomination) in order that you may be successful.
Shaitan (Satan) wants only to excite enmity and hatred between you with intoxicants (alcoholic drinks) and gambling, and hinder you from the remembrance of Allah and from As-Salat (the prayer). So, will you not then abstain?”[al-Maa’idah 5:90-91]
Due to this prohibition, it would be prohibited to work in this field. Since the worker is not the owner, and would mainly be processing transactions and convincing clients, it would fall under the haram lighayrihi [prohibited due to another reason], which would be promoting a forbidden action.
As for the money that is earned through such a profession, not all the money working in such an occupation is considered unlawful. It will be advisable to give a certain percentage of your wages to charity without the intention of reward.
Only Allah knows best
Written by Maulana Mustafa Umar
Checked and approved by Mufti Mohammed Tosir Miah
Darul Ifta Birmingham