The Ruling on Commercial Insurance
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Fatwa No. ( 4948 )
Q: The Global Gulf Insurance Company, whose main headquarters is in the city of Ajman in the United Arab Emirates, has offered us in the Kingdom to represent them. They engage in commercial insurance, and it is well known that no banks or international companies allow any cargo to be transported on ships, or any letters of credit to be opened, unless it is insured. The aforementioned company has requested
us to be their agents in the Kingdom of Saudi Arabia, since no non-Saudi company is permitted to conduct any business unless it has a Saudi agent. Out of our desire not to fall into any doubt that would be contrary to the pure Islamic religion, we seek your guidance on what you see as appropriate in this matter, so that we may act accordingly. May Allah guide you and direct your steps toward what is good and correct.
A: Commercial insurance, in all its forms, is forbidden; because it contains excessive uncertainty, usury or interest, and gambling. Working with its companies is forbidden, and representing them or acting as their agents in Saudi Arabia or elsewhere is forbidden; because that involves cooperating in sin and aggression. And Allah the Exalted said:[Al-Ma'idah 5:2]
Q: The Global Gulf Insurance Company, whose main headquarters is in the city of Ajman in the United Arab Emirates, has offered us in the Kingdom to represent them. They engage in commercial insurance, and it is well known that no banks or international companies allow any cargo to be transported on ships, or any letters of credit to be opened, unless it is insured. The aforementioned company has requested
us to be their agents in the Kingdom of Saudi Arabia, since no non-Saudi company is permitted to conduct any business unless it has a Saudi agent. Out of our desire not to fall into any doubt that would be contrary to the pure Islamic religion, we seek your guidance on what you see as appropriate in this matter, so that we may act accordingly. May Allah guide you and direct your steps toward what is good and correct.
A: Commercial insurance, in all its forms, is forbidden; because it contains excessive uncertainty, usury or interest, and gambling. Working with its companies is forbidden, and representing them or acting as their agents in Saudi Arabia or elsewhere is forbidden; because that involves cooperating in sin and aggression. And Allah the Exalted said:
but do not cooperate in sin and aggression
وَلاَ تَعَاوَنُوا عَلَى الإِثْمِ وَالْعُدْوَانِ
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.