Insurance on body parts or on wealth
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Fatwa No. ( 16048 )
Q: I would like to bring before Your Eminence an important matter concerning insurance against risks. The General Organization for Social Insurance compels individual establishments and companies to insure with them against risks, whether the establishment is commercial or service-oriented, and whether its workers are exposed to potential risks or the possibility of their exposure is nonexistent or nearly nonexistent. Their argument for this is that it is a regulation that must be adhered to, and that the monthly insurance premium must be paid to the General Organization for Social Insurance. Since this type of insurance carries a suspicion of prohibition, and is among the forbidden contracts according to the fatwa issued by the Council of Senior Scholars in the Kingdom in its tenth session, by its decision No. (55), held in the city of Riyadh, on 4/4/1397 AH, which prohibited insurance in all its types, and this fatwa was affirmed by the Islamic Fiqh Academy by its decision issued in its first session, held on 10 Sha'ban 1398 AH, in Makkah al-Mukarramah, at the headquarters of the Muslim World League.
The insurance that the organization demands is: insurance based on the assumption of a risk that may occur to the worker, whose nature, form, or impact is unknown. Thus, the organization requires us to pay a monthly amount for a contract that contains the defects of financial exchange contracts based on probability; it is a contract of excessive uncertainty (gharar); because the insured does not know at the time of the contract when the risk will occur, and he pays the monthly insurance premiums throughout the period the employee works with the employer. The employee whom we are obligated to insure receives nothing, and the General Organization for Social Insurance cannot determine what it will give to each employee and for each type of risk. Also, this insurance is a type of loss without a crime or causing one, and a gain for the organization without compensation, or with compensation whose amount, value, and time are unknown. Furthermore, this contract contains a suspicion of usury of excess (riba al-fadl) and usury of deferment (riba al-nasi'ah); if the organization pays an amount more than what was paid in money, whether to the employee or his heirs, it contains usury of excess, and since the organization pays him after a period, it becomes usury of deferment. Also, this contract is a contract of gambling; because of the ignorance, uncertainty, and gambling involved in it. It also involves taking money from the owner of the establishment without compensation. It is also compulsion to do what is not obligatory by the Shari'ah, since the risk did not occur to the insured employee, nor did he cause it to occur, but rather it is based on the compulsion by the General Organization to guarantee the risk, assuming its occurrence.
In exchange for what is paid, in addition to it being a contract of coercion, and taking people's money by falsehood without a legal justification, on the pretext that the one in authority issued it, even if it contradicts the command of Allah; because there is no obedience to a created being in disobedience to the Creator. O Master of Eminence: Since the organization argued that you have reviewed the insurance regulations, and therefore this contract is permissible, and it is not forbidden; because it is mentioned in the regulation, and you have reviewed the regulation and approved it, and since this statement contradicts what came in the decision of the Council of Senior Scholars and the Islamic Fiqh Academy, regarding the prohibition of all types of insurance; therefore, I hope to be given a fatwa on the following: Is it permissible to insure with the General Organization for Social Insurance in the occupational hazards branch, according to what is stated in articles 27-37? Is this type of insurance permissible by the Shari'ah? And in the case of impermissibility, would I have committed a forbidden act if I insured; because I have no choice by the ruling that the organization is a governmental authority to which the individual must submit.
A: 1 - It is not permissible for a Muslim to insure himself against illness, whether in Islamic lands or in the lands of disbelievers; because of the excessive uncertainty (gharar) and gambling involved in it. 2 - It is not permissible for a Muslim to insure the soul, or the body parts, in whole or in part, or wealth, or property, or a car, or the like.
of that, whether that is in the lands of Islam or the lands of disbelievers; because that is among the types of commercial insurance, and it is forbidden; because it contains excessive uncertainty (gharar) and gambling.
Q: I would like to bring before Your Eminence an important matter concerning insurance against risks. The General Organization for Social Insurance compels individual establishments and companies to insure with them against risks, whether the establishment is commercial or service-oriented, and whether its workers are exposed to potential risks or the possibility of their exposure is nonexistent or nearly nonexistent. Their argument for this is that it is a regulation that must be adhered to, and that the monthly insurance premium must be paid to the General Organization for Social Insurance. Since this type of insurance carries a suspicion of prohibition, and is among the forbidden contracts according to the fatwa issued by the Council of Senior Scholars in the Kingdom in its tenth session, by its decision No. (55), held in the city of Riyadh, on 4/4/1397 AH, which prohibited insurance in all its types, and this fatwa was affirmed by the Islamic Fiqh Academy by its decision issued in its first session, held on 10 Sha'ban 1398 AH, in Makkah al-Mukarramah, at the headquarters of the Muslim World League.
The insurance that the organization demands is: insurance based on the assumption of a risk that may occur to the worker, whose nature, form, or impact is unknown. Thus, the organization requires us to pay a monthly amount for a contract that contains the defects of financial exchange contracts based on probability; it is a contract of excessive uncertainty (gharar); because the insured does not know at the time of the contract when the risk will occur, and he pays the monthly insurance premiums throughout the period the employee works with the employer. The employee whom we are obligated to insure receives nothing, and the General Organization for Social Insurance cannot determine what it will give to each employee and for each type of risk. Also, this insurance is a type of loss without a crime or causing one, and a gain for the organization without compensation, or with compensation whose amount, value, and time are unknown. Furthermore, this contract contains a suspicion of usury of excess (riba al-fadl) and usury of deferment (riba al-nasi'ah); if the organization pays an amount more than what was paid in money, whether to the employee or his heirs, it contains usury of excess, and since the organization pays him after a period, it becomes usury of deferment. Also, this contract is a contract of gambling; because of the ignorance, uncertainty, and gambling involved in it. It also involves taking money from the owner of the establishment without compensation. It is also compulsion to do what is not obligatory by the Shari'ah, since the risk did not occur to the insured employee, nor did he cause it to occur, but rather it is based on the compulsion by the General Organization to guarantee the risk, assuming its occurrence.
In exchange for what is paid, in addition to it being a contract of coercion, and taking people's money by falsehood without a legal justification, on the pretext that the one in authority issued it, even if it contradicts the command of Allah; because there is no obedience to a created being in disobedience to the Creator. O Master of Eminence: Since the organization argued that you have reviewed the insurance regulations, and therefore this contract is permissible, and it is not forbidden; because it is mentioned in the regulation, and you have reviewed the regulation and approved it, and since this statement contradicts what came in the decision of the Council of Senior Scholars and the Islamic Fiqh Academy, regarding the prohibition of all types of insurance; therefore, I hope to be given a fatwa on the following: Is it permissible to insure with the General Organization for Social Insurance in the occupational hazards branch, according to what is stated in articles 27-37? Is this type of insurance permissible by the Shari'ah? And in the case of impermissibility, would I have committed a forbidden act if I insured; because I have no choice by the ruling that the organization is a governmental authority to which the individual must submit.
A: 1 - It is not permissible for a Muslim to insure himself against illness, whether in Islamic lands or in the lands of disbelievers; because of the excessive uncertainty (gharar) and gambling involved in it. 2 - It is not permissible for a Muslim to insure the soul, or the body parts, in whole or in part, or wealth, or property, or a car, or the like.
of that, whether that is in the lands of Islam or the lands of disbelievers; because that is among the types of commercial insurance, and it is forbidden; because it contains excessive uncertainty (gharar) and gambling.
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.