Riba and installment sale : selling insurance policies and inflation interest

Fatawa Question

[Question one] : Respected Sir, Assalam Alaikum, Hope this finds u in best of your health and spirit. I m a new immigrant to Canada .Recently I did my certification in life license course and have got an opportunity to work in Sunlife financials (www.sunlife.ca ) as an advisor. My job will primarily of selling insurance policies for first few months. I wish to have guidance from u if doing this type of job is Haram in Islam. I will wait for your mail anxiously. [Question two] : Respected Sir, Assalam Alaikum, Hope this finds you in best of your health and spirit. I have a certain query pertaining to commercial banking and about its validity in Islam. Is money earned on fixed deposit in any commercial bank kept for certain period of time is Haram or not ? I will wait anxiously for your reply. [Question three] : Wassalam Sir, Thanks for your reply. I have one more query generally to have better understanding. Suppose there are 2 persons (A) and (B). (A) Lends (B) a sum of $10.00.At present let’s assume $ 10 can buy 10K g of iron ore. (B) Returns $ 10.00 to (A) after 3 yrs. but at that time $ 10.00 can buy only 5K g of iron ore. Therefore just to have same buying power if (A) wants to have $ 20.00 will this difference of $ 10.00 between principal ($ 10.00) and money now demanded ($ 20.00) will be regarded as interest / usury or not. I will wait for your reply anxiously. Best regards

Fatwa

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Publication Date

2009-07-21

Main Subjects

Financial and Accounting Sciences
Islamic Studies

Topics

• Islamic jurisprudence
• Sales
• Inflation(Finance)
• Insurance
• Usury

No. of Pages

3

Data Type

Fatawa

Language

English

Record ID

BIM-730466

• APA
• MLA
• AMA