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Search Fatawaa

Subject : Ruling on Working at an Insurance Company

Fatwa Number : 665

Date : 27-04-2010

Classified : Leasing

Fatwa Type : Search Fatawaa

Question :

I'm getting a job at one of the vehicle insurance companies (Vehicle licensing), what is the ruling of Sharia on working in such company and the salary it pays to employee?

The Answer :

All perfect praise be to Allah the Lord of the Worlds. May His peace and blessings be upon our Prophet Mohammad and upon all his family and companions.

From an Islamic perspective, it is forbidden to work for commercial insurance companies because their business rests on gambling. Their profit comes from the difference between what they pay out to insurance claimants and what they take from contractors. What governs this difference is the divine preordainment with regards to car accidents. Thus, the cause of their profit is betting on divine preordainment and this has been forbidden by Almighty Allah Who Said {What means}: "O ye who believe! Strong drink and games of chance and idols and divining arrows are only an infamy of Satan’s handiwork. Leave it aside in order that ye may succeed." {Al-Mai`dah, 90}.

The learned men of the Islamic faith are of the view that it is forbidden to work for such companies and the salaries they pay to staff members are unlawful. Thus, We advise you to look for a lawful job, be mindful of Allah and rest assured that He Will Reward you with that which is better for He The Exalted Said {What means}: "Then, when they have reached their term, take them back in kindness or part from them in kindness, and call to witness two just men among you, and keep your testimony upright for Allah. Whoso believeth in Allah and the Last Day is exhorted to act thus. And whosoever keepeth his duty to Allah, Allah will appoint a way out for him, And will provide for him from (a quarter) whence he hath no expectation. And whosoever putteth his trust in Allah, He will suffice him. Lo! Allah bringeth His command to pass. Allah hath set a measure for all things." {At-Talaq, 2-3}. And Allah The Almighty Knows Best.



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