Insurance called cooperative in schools

The questioner:
He says: Honorable Shaykh, may Allah grant you success. There is a military officer in the school, and he started talking about insurance for the group, and he started urging the students and teachers. During the speech, he said that this is cooperative insurance, and that there is a religious ruling for this work. What is the ruling on this? And will a ruling be issued by the Committee of Senior Scholars regarding this matter, since the truth and falsehood have become mixed up for us?

The Shaykh:
This is a lie. Their claim that it is cooperative is a lie. It is not cooperative; it is commercial. This is a commercial generalization. No ruling has been issued by the Committee of Commerce and Scholars regarding this. A ruling was issued for the cooperative type intended for donating to help the needy, where donations are collected and the needy are helped from them. That is what cooperative means. As for the insurance they are referring to now, it is not cooperative. It is commercial. Companies gather and pay money, and they bear the fines on the victims. They invest these funds in banks and take their profits, and they divide them at the end of the year. This is their method. It is investment, not commercial in the sense of their intent. Their intent is not to benefit the needy without investment or donation. It is not donation; their work is this. Their work is investment. They invest the collected funds in banks, and they earn huge profits from them, and they divide them. And if a fine occurs for someone, they pay it, and it is not covered by what they earned and gained from the huge profits. They settle it from the people's money and from the profits they obtained, and they did not get anything.

The questioner:
He says: Honorable Shaykh, may Allah grant you success. In our school, during the morning assembly.

The Shaykh:
And it is also a lie regarding the lives of the Senior Scholars that we believe in this. Yes.