Cooperative Insurance and Commercial Insurance and the Difference Between Them
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Question:
Or the one who told him that the Permanent Committee for Scholarly Research and Ifta informed his brothers of the permissibility of insurance in a national company for insurance transactions, and the prohibition of commercial insurance. Is this correct? And what is the difference between them?
Answer:
The Committee did not permit anything, and nothing passed through them here. However, the Council of Senior Scholars tried to issue a decision regarding cooperative insurance, which means, as we mentioned, donations collected in a fund or invested in permissible matters. Then, if a Muslim needs it or is afflicted, they help him from this fund. What returns to them is only reward and merit; no financial profits or financial investment returns to them. That is commercial, not cooperative. What returns something to the donor is commercial and is not permissible.
But nothing was issued, not even regarding the insurance that is donation; nothing was issued regarding it. They wanted to issue it, but they requested reports and data from the competent authorities, and nothing came to them, so they held back from issuing anything. So the Council did not issue anything except the prohibition, the prohibition of commercial insurance. They agreed on its prohibition. And those who say that commercial insurance is cooperative are lying. It is not cooperative; it is commercial. But they named it cooperative and said that the Council of Senior Scholars issued a fatwa on it. This is a matter of deceiving people. And the Permanent Committee issued a statement refuting this news, and that nothing was issued by the Council of Senior Scholars permitting the cooperative insurance they intend, which is investment. It is commercial investment and they call it cooperative, in order to deceive people, in order to say the Council issued a fatwa on its permissibility. The Council did not issue a fatwa on this. This is all lies upon lies. Yes.
The presenter:
May Allah reward you,
Or the one who told him that the Permanent Committee for Scholarly Research and Ifta informed his brothers of the permissibility of insurance in a national company for insurance transactions, and the prohibition of commercial insurance. Is this correct? And what is the difference between them?
Answer:
The Committee did not permit anything, and nothing passed through them here. However, the Council of Senior Scholars tried to issue a decision regarding cooperative insurance, which means, as we mentioned, donations collected in a fund or invested in permissible matters. Then, if a Muslim needs it or is afflicted, they help him from this fund. What returns to them is only reward and merit; no financial profits or financial investment returns to them. That is commercial, not cooperative. What returns something to the donor is commercial and is not permissible.
But nothing was issued, not even regarding the insurance that is donation; nothing was issued regarding it. They wanted to issue it, but they requested reports and data from the competent authorities, and nothing came to them, so they held back from issuing anything. So the Council did not issue anything except the prohibition, the prohibition of commercial insurance. They agreed on its prohibition. And those who say that commercial insurance is cooperative are lying. It is not cooperative; it is commercial. But they named it cooperative and said that the Council of Senior Scholars issued a fatwa on it. This is a matter of deceiving people. And the Permanent Committee issued a statement refuting this news, and that nothing was issued by the Council of Senior Scholars permitting the cooperative insurance they intend, which is investment. It is commercial investment and they call it cooperative, in order to deceive people, in order to say the Council issued a fatwa on its permissibility. The Council did not issue a fatwa on this. This is all lies upon lies. Yes.
The presenter:
May Allah reward you,
Source
شرح نونية ابن القيم [35] — alfawzan.live (1:07:09)
The Arabic text is a machine transcription of the audio recording.