Date : 19-09-2017

Question :

What is the ruling on the Military Credit Fund subscribing in Social Takaful Insurance?

The Answer :

All perfect praise be to Allah, The Lord of the Worlds, and may His peace and blessings be upon our Prophet Muhammad and upon all of his family and companions. Having reviewed the Islamic Insurance Co. 's contract, we (The Board of Iftaa') found out that this contract is based on cooperative insurance which is an agreement among people who undergo certain risks in order to reduce possible damages by paying subscriptions as donations. Moreover, the insurance fund is based on those donations (payments)and it has the same ruling of a corporate body that has financial rights and obligations. In addition, the fund gives insurance and compensation over damages that happened to subscribers and in accordance with the regulations of the fund. Furthermore, the aforementioned fund is managed by an authorized elected committee or by a joint-stock company(The Islamic Insurance Co.) against a fair in order to manage the fund`s insurance responsibilities and to invest assets. Therefore, there is no harm in the subscription made by the Military Credit Fund with the Islamic Insurance Co. And Allah knows best.