Working for an insurance company

Al-Salamu ‘alaykum Shaykh,

I got a job offer from insurance company as an independent sales agent. I am looking for whether, I can work in Insurance company as sales representative in the following areas.I have told by the company, training will be starting next week. Please answer my question in the light of Quran and Sunnah. Jazakallah Khairan

 بسم الله الرحمن الرحيم

الجواب حامدا ومصليا ومسلما

In principle, since the main sources of revenue for insurance companies are from haram sources, working there would not be permissible. The two main sources of income for insurance companies are interest (charged for late payments) and premiums that customers pay. Interest is strictly prohibited in Islam and the premiums customers pay fall under gambling and would thus also be deemed haram.  This is because one is unsure about the exact return they will receive for their payments. Thus, this would fall under the ruling of gambling which is prohibited in Islam. Consider the following verses from the Qur’an:

إنما الخمر والميسر والأنصاب والأزلام رجس من عمل الشيطان 

“Indeed wine, gambling, altar stones, and divining arrows are filth and a work of the devil.”

(al-Maidah:90) 

وأحل الله البيع وحرم الربا 

“And Allah has permitted transactions and prohibited interest.”

(al-Baqara:275) 

 ولا تعاونوا على الإثم والعدوان 

“And do not help one another in sins and evil.”

(al-Maidah:2)

The prohibition of interest, gambling and helping in any of these acts is clearly stated in these verses of the Holy Quran. Thus, working for an insurance company which earns revenue from such sources would not be permissible.

والله اعلم

Allah subhanahu wa ta’ala knows best.

Sulaiman Yusufi

Approved by Mufti Husain Ahmad Madani