Monday | 20 March 2023 | 28 Shabaan 1444
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Fatwa Answer

Question ID: 1589 Category: Dealings and Transactions
Insurance as Business

اَلسَّلاَ مُ عَلَيْكُمْ وَرَحْمَةُ اللهِ وَبَرَكَا تُهُ 

i am used car business & my friend is an accountant. We both thinking to start an insurance business. ( All sort of insurances) Please Advice also explain why if its not permissible. 

بسم اللہ الرحمن الرحیم

الجواب وباللہ التوفیق

Both usury and gambling are forbidden in Islam. There are very strong warnings of divine punishment in the Qur'an and Hadith regarding this. Interest has been described as more severe than adultery with his own mother, and is equivalent to fighting with Allah (SWT). In view of its abomination, the Shari'ah has cursed be the usurer, the giver, the witness, the writer of interest deal and the accomplice or the co-worker in this matter.

What are the reasons for this? That would be a detailed article. Since it has been declared haraam in the Qur'an and the Hadith, it is obligatory to acknowledge it without hesitation.

Because both interest and gambling are found in the case of insurance, the employment related to it is haraam according to shari'ah rules.

قال اﷲ تعالیٰ:  یَا اَیُّہَا الَّذِیْنَ اٰمَنُوْا اِنَّمَا الْخَمْرُ وَالْمَیْسِرُ وَالْاَنْصَابُ وَالْاَزْلَامُ رِجْسٌ مِنْ عَمَلِ الشَّیْطَانِ فَاجْتَنِبُوْہُ لَعَلَّکُمْ تُفْلِحُوْن ۔(المائدہ:۹۰

 قال اﷲ تعالیٰ:وَاَحَلَّ اللّٰہُ الْبَیْعَ وَحَرَّمَ الرِّبَا۔ (البقرہ:۲۷۵

{وَتَعَاوَنُوْا عَلَی الْبِرِّ وَالتَّقْوٰی وَلَا تَعَاوَنُوْا عَلَی الْاِثْمِ وَالْعُدْوَانِ} (المائدۃ :۲

{ یَٓا أَیُّھَا الَّذِیْنَ اٰمَنُوْا لَا تَأْکُلُوا الرِّبَا أَضْعَافًا مُضَاعَفَۃً ، وَاتَّقُوْا اللّٰہَ لَعَلَّکُمْ تُفْلِحُوْنَ ( آل عمران :۱۳۰

O’ you who believe! devour not usury, doubled and multiplied; but fear Allah; that you may (really) prosper.

It is stated at another place:


یَٓا أَیُّھَا الَّذِیْنَ اٰمَنُوْا اتَّقُوا اللّٰہَ وذَرُوْا مَا بَقِيَ مِنَ الرِّبَا إِنْ کُنْتُمْ مُؤْمِنِیْنَ، فَإِنْ لَّمْ تَفْعَلُوْا فَأْذَنُوْا بِحَرْبٍ مِّنَ اللّٰہِ وَ رَسُوْلِہٖ، وَإِنْ تُبْتُمْ فَلَکُمْ رُوْسُ أَمْوَالِکُمْ ،لَا تَظْلِمُوْنَ وَلَا تُطْلَمُوْنَ  

(البقرۃ :۲۷۸-۲۷۹) 

O' you who believe! Fear Allah and give up what remains of your demand for usury if you are indeed believers.

If you do it not, take notice (ultimatum) of war from Allah and His Messenger, but if you turn back (repent), you shall have your capital sums; deal not unjustly, and you shall not be dealt with unjustly.

عن جا بر رضی اللہ عنہ  قال لعن رسول اللّٰہ  صلی اللہ علیہ وسلم الربا وموکلہ وکاتبہ وشاھدیہ وقال ھم سواء ( مسلم: ۲۹۹۵،مسند احمد:۱۳۷۴۴

الربا اثنان و سبعون بابا،أدناھا مثل إتیان الرجل أمہ( معجم الاوسط:۷/۱۵۸


فقط ،والسلام