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Can a Muslim Work for Commercial Insurance Companies?

14 November, 2022
Q Dear scholars, as-Salamu `alaykum. Would it be permissible to work for commercial insurance companies that make most of their income through car insurance, more specifically where the work is not directly related to insurance process but the security of the organization's IT infrastructure? Jazakum Allah khayran.

Answer

Prof. Dr. Monzer Kahf
14 November, 2022

Wa `alaykum As-Salamu wa Rahmatullahi wa Barakatuh

In the Name of Allah, Most Gracious, Most Merciful. 

All praise and thanks are due to Allah, and peace and blessings be upon His Messenger.

In this fatwa:

Working for commercial insurance companies is permissible, especially when one’s work does not involve interest-based insurance policies.

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In his response to your question, Prof. Dr. Monzer Kahf, Professor of Islamic Finance and Economics at Qatar Faculty of Islamic Studies, states:

Insurance is not unanimously impermissible. There are many scholars who believe that if insurance is not interest-based, it is permissible provided that the subject of insurance is also permissible (for example, it is prohibited to insure a shipment of liquor). I personally follow this latter opinion.

Accordingly, working in commercial insurance companies is permissible, especially when one’s work is not involved in interest-based insurance policies. Cars, hazards, maritime, and many kinds of life polices are not interest based.

Almighty Allah knows best.

Editor’s note: This fatwa is from Ask the Scholar’s archive and was originally published at an earlier date.