Fatwa ID: 07430
Answered by Mufti Ousman Haye
Question:
I have been offered a project coordinator position at Kaiser Permanente, which as you may know is a health insurance company. I wanted to know if this is considered a halal source of income or not. Awaiting your reply.
In the name of Allah, the Most Gracious, the Most Merciful
Answer:
Firstly, it should be understood that all types of insurances are impermissible for 3 reasons:
1. Maysir (Gambiling): All kinds of insurance is like playing with chances. They tell you, pay this much money, then if this happens to you we will give you this much. If the insured person is afflicted with any loss or damage, he might receive more than what he has paid for or might receive less. The same goes with the insurance company.
This is pure gambling.
2. Riba (Intrest): The amount of damage that were to happen, if any is impossible to quantify beforehand which will lead to interest. If the Insurance Company receives premiums worth more than the value, then that will be usury and interest. If there is any loss and the loss is worth much less than the total premiums that he has paid to the insurance company, such a person would be guilty of undertaking a usurious and interest based transaction.
3. Gharar (Future uncertainty): The obligation of payment from the side of the insurance company is based on a future contingency. Therefore it is uncertain if anything will happen to the or not and whether the insurance company will ever make any type of payment. All kinds of insurance are based on uncertainty to the most extreme kind. Insurance companies and those who sell insurance refuse to insure cases except where there is clear uncertainty in whether or not the condition being insured will happen or not. In other words, the condition being insured against must have a possibility of happening or not happening. All types of transactions which involve uncertainty are forbidden in Islam.
The Prophet (May peace and blessings be upon him) prohibited from all types of transactions which involve Gharar (Future uncertainty) {Sahih Muslim:3807 and Jami-Al Tirmizi: 1215)
Sayyiduna Abd Allah ibn Mas’ud (Allah be pleased with him) narrates that the Messenger of Allah (Allah bless him & give him peace) has cursed the one who accepted usury, the one who paid it, the witness to it, and the one
who recorded it. (Tirmizi:1191)
In light of the above and many other narrations, scholars have ruled that it would be unlawful for a Muslim to accept employment in a bank or any such institution whose dealings are primarily centred on interest-based
transactions, such as an insurance company.
Therefore, employment in an insurance company would be unlawful.
نهى رسول الله (صلى الله عليه وسلم) عن بيع الحصاة و عن بيع الغرر
{صحيح مسلم رقم الحديث:٣٨٠٧ ج٢، ص١٠٠٢، البشرى و جامع الترمذي رقم الحديث: ١٢١٥، ج٢، ص٦٠٨،
البشرى}
لعن رسول الله (صلى الله عليه وسلم) آكل الربا وموكله وشاهديه وكاتبه
{جامع الترمذي رقم الحديث: ١١٩١، ج٢، ص٦٠٠، البشرى}
لا تبع ما ليس عندك
{جامع الترمذي رقم الحديث: ١٢١٧، ج٢، ص٦٠٩، البشرى}
Only Allah (عز و جل) knows best.
Written by Mufti Ousman Haye
Checked and approved by Mufti Mohammed Tosir Miah
Darul Ifta Birmingham
