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The question

Does the contract between a brokerage firm and commercial and cooperative insurance companies, as well as investment with a percentage of profit for subscribers and investors, fall under the issue of juristic disagreement regarding what is seized through a void contract?

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Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 20261 min readAlso available in العربية
The answer

Insurance is of two types: permissible and impermissible. The ruling on mediation follows the ruling of what is being mediated. If it is for permissible cooperative Islamic insurance, then there is no harm in it nor in taking a fee for it. However, if it is for impermissible commercial insurance, then it falls under aiding in sin, and Allah has forbidden that, saying: "And do not cooperate in sin and aggression." Intention does not justify committing forbidden acts. Investing the participants' funds for a percentage is permissible if the investment is in a lawful manner, and the transaction is considered (profit-sharing). The fee earned from mediating for commercial insurance is forbidden, and it must be spent on charitable causes and for the benefit of Muslims. The profits of a permissible project made with that fee are permissible after deducting the amount related to the forbidden earnings.

Summarized from the full answer at Ftawy · imported

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Where this answer came from
Source platform
Ftawy
Original fatwa ID
123831
Imported
Translation status
Source text, unreviewed
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