Fatwa ID: 08755

 

 

Written by Alimah Aisha Qureshi

 

Question:

 

Sending this on my husband’s behalf. He has written the following question.

 

I am currently working as an Accidental Claims Manager at a general insurance company.

 

Here is what I do:

 

– I work in the Motor Claims Department.
– My main job is to check vehicles that are totally damaged and settle the claims.
– I also settle personal accident claims when someone dies or gets permanently disabled in a motor accident.
– I manage a team that handles repair loss claims.
– I have a responsibility to check and approve payments for insurance claims.
– I also help the Learning & Development team by conducting training sessions.
– In these trainings, I teach about car technical details and insurance policy terms.
– I help create training material for automobile topics.
– I am part of several internal teams: technical audit team, grievance redressal (complaints handling) team, recruitment panel, and fraud control team.
– Apart from my main job, I regularly meet producers, brokers, and agents to coordinate claims and support business growth.
– I also represent my department and defend the company in legal cases related to claim disputes reported to the ombudsman.

 

My Questions:

 

1. Is my income halal?
2. If not, can you explain clearly why and how it is not halal?
3. If not, what should I do about this job?
4. If not, what should I do about my savings and other assets?

 

 

In the name of Allah, the Most Gracious, the Most Merciful

 

 

Answer:

 

Working as an Accidental Claims Manager at a general insurance company involves dealing with motor claims, personal accident claims, and aspects of insurance that may be problematic from an Islamic perspective.

 

Anything is permissible (halal) unless proven otherwise by clear evidence (dalil) from the Qur’an, Sunnah, or Ijma’ (consensus). Therefore, income from any source is considered halal unless it is associated with actions or transactions that are impermissible. Conventional insurance that involves interest (riba), excessive uncertainty (gharar), and gambling (maysir) is impermissible.

 

Most conventional insurance companies deal with interest-based transactions, where investments are made in interest-bearing instruments. The earnings derived from such investments are considered haram.

 

The contracts in conventional insurance mostly involve uncertainty about the actual value of the insurance claim. The amount the client will pay as premiums and the amount they will receive in case of an accident is not fixed, which leads to uncertainty.

 

Conventional insurance is considered gambling because it is based on chance. The client’s premium is paid without knowing if or when a claim will occur, which is like the uncertainty and risk involved in gambling.Therefore, working in a conventional insurance company, especially handling claims related to motor accidents and personal injuries, is not halal.

 

 

References:

 

يَا أَيُّهَا الَّذِينَ آمَنُوا إِنَّمَا الْخَمْرُ وَالْمَيْسِرُ وَالْأَنْصَابُ وَالْأَزْلَامُ رِجْسٌ مِّنْ عَمَلِ الشَّيْطَانِ فَاجْتَنِبُوهُ

Surah Al-Ma’idah, verse 90

 

لَا تَأْكُلُوا أَمْوَالَكُمْ بَيْنَكُمْ بِالْبَاطِلِ

Surah Al-Baqarah, verse 188

 

 

Only Allah knows best.

Written by Alimah Aisha Qureshi

Checked and approved by Mufti Mohammed Tosir Miah

Darul Ifta Birmingham