Mu' meneen Brothers and Sisters,

As Salaam Aleikum wa Rahmatullahi wa Barakatuh.  (May Allah's Peace, Mercy and Blessings be upon all of you)

One of our brothers/sisters has asked this question:

Dear Brother,

Asalam 3laikum

On this issue of Haram and Halal income I have a query. Basically its about working for a Health/Medical Insurance company. Somebody is keen to know a ruling on whether working for Health/Medical Insurance company is Haraam too. As he is about to get a job in one of the Medical Insurance companies in UAE.  Yesterday I was searching for Islamic rulings on this. I came across rulings which emphasized that working for Banks and Insurance companies is among the forbidden sources of income unless they are interest free organizations.

Is working for Health insurance companies forbidden too. Please let me know if you can assist.

Jazak Allah Khair

(There may be some grammatical and spelling errors in the above statement. The forum does not change anything from questions, comments and statements received from our readers for circulation in confidentiality.)

Answer:

Working in banks insurance riba

In the name of Allah, We praise Him, seek His help and ask for His forgiveness. Whoever Allah guides none can misguide, and whoever He allows to fall astray, none can guide them aright. We bear witness that there is none worthy of worship but Allah Alone, and we bear witness that Muhammad (saws) is His slave-servant and the seal of His Messengers.

Dear and Beloved Sister in Islam, it is not that the system of banking or insurance in its essence that has been declared haraam in Islam; but what Allah and His Messenger (saws) have specifically and categorically declared absolutely forbidden and haraam is the concept of ‘riba’.

Allah says in the Holy Quran Chapter 2 Surah Baqarah verse 274-276:

But those who devour ‘riba’ become like the one whom Shaitaan has bewitched and maddened by his touch. They have been condemned to this condition because they say, “Trade is just like ‘riba”, whereas Allah has made trade halaal and ‘riba’ haraam. Henceforth, if one abstains from taking ‘riba’ after receiving this admonition from his Lord, no legal action shall be taken against him regarding the ‘riba’ he had devoured before: his case shall ultimately go to Allah. But if one repeats the same crime even after this, he shall go to Hell, where he shall abide for ever! Allah deprives ‘riba’ of all blessing and develops charity, and Allah does not like an ungrateful, sinful person.

Allah says further in the Holy Quran Chapter 2 Surah Baqarah verse 278:

O Believers!, fear Allah and give up that ‘riba’ which is still due to you, if you are true believers. But if you do not do so, then you are warned of the declaration of war against you by Allah and His Messenger!

Allah says in the Holy Quran Chapter 4 Surah Nisa verse 161:

That they took ‘riba’, although they were forbidden. And that they devoured men’s substance wrongfully. We have prepared for those among them who reject faith a grievous punishment (of Hell Fire)!

Al-Tirmidhi Hadith 2829 Narrated by Ali ibn AbuTalib

Ali heard Allah's Messenger (saws) invoke the curse of Allah on those who took usury, those who paid it, those who recorded it, and those who refused to give sadaqah.

There is absolutely no doubt that the conventional banking and insurance systems are based on the system and concept of ‘riba’, and even though one might not be involved himself in consuming ‘riba’, their working in such institutions would make them an accomplice in what has clearly been declared forbidden by Allah and His Messenger (saws). Thus if one works in any organization whose main source of income is from ‘riba’, then one could not say with absolute conviction that the working and earnings from such ‘riba’ based organizations would be absolutely lawful in the Sight of Shariah.

But it would be absolutely lawful for a believer to work in an Islamic Bank or Shariah compliant insurance company whose transactions are devoid of the evil of ‘riba’.

If one turns down an offer from working and earning in a ‘riba’ based environment only because they wish and strive to obey the Commands of their Lord Creator; not only will their Lord Most Gracious be pleased with their sacrifice and reward them for their piety and righteousness, but if the Lord Wills and Pleases, He will provide them abundant lawful sustenance from His Unlimited and Infinite Bounties.

Whatever written of Truth and benefit is only due to Allah’s Assistance and Guidance, and whatever of error is of me alone. Allah Alone Knows Best and He is the Only Source of Strength.

Your brother and well wisher in Islam,

Burhan