Takaful : is insurance Haram ?

Fatawa Question

ASAK Dr. Kahf My name is Sumair, forgive me, but I’m being faced with a big test right now, and would be grateful for your guidance. For most of my life I have been taught that conventional insurance (U.S.) is absolutely Haram : when new premiums are required on a fixed time schedule, irrespective of how many premium payments have already been made or used, I believe the insurer is exacting Riba from the customer : Sayyidina Abd Allah Ibn Mas’ud (Allah be pleased with him) narrates that the messenger of Allah (Allah bless him and 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. (Sunan Abu Dawud : book 22, number 3327). I've always been taught that is more just to adopt cooperative forms of group insurance (but that is beside the point). On this basis I've never before considered employment at any type of insurance company. I've never even entertained the idea. However, the fact remains that I am guilty of having paid for both automobile and health insurance in this country, without any hesitation, from my very first paycheck right down to my most recent one. At any rate, I believe that when Obama care goes into effect in 2013, what used to be a Haram industry may in fact become permissible : Riba will become a federally mandated obligation just like auto insurance, and paying for health insurance will become obligatory for all wage earners, Muslim and non-Muslim alike. I'm reaching out to you today because I need a second opinion : I am fearful that my new-fangled opinions are blind and are being driven by my personal circumstances (my need to find new employment) and not by objectivity alone. I realize that a single Hadith cannot be the basis of a fatwa, and that under duress it may be permissible to perform Halal employment (I work in information technology) at a Haram company... but my question to you is : if we must pay for car insurance, is it permissible to work for a car insurance company like AAA or Geiko or 21st century ? Likewise, if we must pay for health insurance, is it permissible to work for a health care insurance company like united health care or blue cross...etc., after Obama care goes into effect in 2013 ? I know it is no joke to make war with Allah. And I know that Shaitan is laughing at me, having teased me with tons of opportunities in insurance locally, while other opportunities for the work I do are 50 miles away. If you are not comfortable answering this question, do please let me know... I will certainly respect that ! But I would be eternally grateful for your opinion in this matter, because you are an expert in Islamic finance, and I am ignorant comparatively. Willing to reform his thinking, Sumair

Fatwa

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Publication Date

2012-10-12

Main Subjects

Economy and Commerce
Islamic Studies

Topics

• Islamic jurisprudence
• Insurance

No. of Pages

2

Data Type

Fatawa

Language

English

Record ID

BIM-729483

• APA
• MLA
• AMA