Islamic Law

Law of Working in an Insurance Company According to Islam

In order to make a living, a Muslim should work. Islam never told its believer for lazing around. When a Muslim is going out of his house for work, his deed is equal with jihad, especially when he is fighting to make the ends meet for the family. There are thousands of jobs human can do, but there are not a few who are mismatched with Islamic sharia.

There are workplaces who system are violating the Islamic law, thus make Muslims who work there become haram too. Among the questionable jobs are banker and insurance agent. While working in a conventional bank is indeed haram, another remains unclear: how is the law of working in an insurance company according to Islam?

Here are some explanation to help you understand about this better.

  1. Commercial Insurance is Haram

Modern commercial company typically operates with the commercial system, which is haram in Islam. The transaction involves many haram aspects on Islam including riba and gambling.

All Muslims know that riba and gambling had been prohibited inside the Holy Quran and mentioned several times in it as well as in the hadith. Also read Reasons For The Prohibition of Riba In Islam

  1. Insurance is Close with Riba

“Allaah has permitted trading and forbidden Riba.” (2:275)

As said above, insurance becomes haram because it’s included several transactions that is prohibited in Islam such as riba. Sharia doesn’t allowed a Muslim to be involved in any things that is close with riba.

  1. Insurance is Full of Ambiguity

Another reason that makes working in an insurance company haram is because it lacks of assurance. Anything that is ambiguous is forbidden in Islam. Also read Importance of Dignity of Work in Islam

On the authority Abi Ab’dillahi al-Nu’man ibn Basheer (RA) who said: I heard the Messenger of Allah (peace be upon him) say: “That which is lawful is clear and that which is unlawful is clear and between the two of them are doubtful [or ambiguous] matters about which not many people are knowledgeable. Thus, he who avoids these doubtful matters certainly clears himself in regard to his religion and his honor.” (Bukhari and Muslim)

  1. Finding Other Job is Better

“O you who believe! Fear Allaah and give up what remains (due to you) from Ribaa (from now onward) if you are (really) believers. And if you do not do it, then take a notice of war from Allaah and His Messenger.” (2:278-279)

Every job that is related with riba, even if you’re not directly involved with the transaction, it’s still haram. Thus, finding other job that doesn’t violating the sharia rule is better.

  1. It Same with Letting Others Commit Falsehood

Say that you work in an insurance company as cleaning service, you think it’s not haram because you’re not directly involved with the transaction nor writing them the contract. Also read Law of Treated with Haram Money in Islam

But you are still a part of it, and you are helping two parties to commit falsehood. Letting something wrong to happen in front of you is equal with committing the sin itself.

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  1. No Tolerance in Dealing with Riba

“Help you one another in Al‑Birr and At‑Taqwa (virtue, righteousness and piety); but do not help one another in sin and transgression.” (5:2)

Allah SWT had made it clear for Muslims that they are prohibited to get involved in any transaction that included riba or working in company that practice it. Don’t think you’re safe from riba just because you don’t write down the contract yourself.

Everyone work in a company that do riba, including the doorkeepers and security guards because they are considered helping falsehood to happen.

  1. Haram Things Prevent Goodness to Come

Everything in Muslims life must be halal. Allah SWT doesn’t tolerate haram things, especially what they do to make a living. When their job is haram, then the food the buy with the money earned is also haram.

All those haram things only prevent good things from happening. The Hellfire awaits for anyone who let haram things included in their life. Also read Law of Being Banker in Islam

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  1. Allah SWT Will Replace for Something Better

A job in bank or conventional company surely helps you to earn a lot, which is hard to give up. But when you give up something haram to be obedient to Allah SWT, He will replace it with something better. Never hesitate to do good for the sake of Allah SWT. Truly, He forbids something because it’s not good to you.

Remember that committing sins is always easier and someone more fun than staying in right path of Allah SWT. But Allah SWT will never leave His servant who give his best to be devoted.

  1. There are More Negative Things Rather Than the Positive Ones

Maybe there are many good things you can gain from working in insurance company, but remember there are more negativity than the positive ones. If you already know that insurance transaction is haram, you better leave it right away. Also read Rights of Workers in Islam

  1. Dedicating Your Job for Sharia is Important

While you are making a living, never forget to dedicate it to the sharia. Everything worldly won’t last for a long time. Looking for a job that is aligned with the sharia and not violating any of it.

  1. Ask Around to Islamic Scholars

If you are not sure yet about the law of working in an insurance company, go ask around to Islamic scholars near you. Upon hearing their opinion and suggestion, you will be more assured.

  1. Not Taking the Risk is Better

Once again, insurance company practice riba. It’s better to stay away from it. There are more job that doesn’t violate the sharia rule and is not haram.

So those are the explanation about the law of working in an insurance company. Hopefully it will be helpful for you who are still unsure and hesitating about the job.

Indah Ariviani

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