Is the money my friend took from the National Insurance Institute unlawful (haram), and am I a partner in sin because I helped him submit the papers, knowing that it is impermissible to combine an insurance salary with work? And what must I do to repent? And is this type of insurance considered usury (riba)?
Commercial life and disability insurance is forbidden due to its inclusion of gharar (excessive uncertainty) and riba (interest). However, if a person is forced into it, the sin falls upon the one who compelled them. It is permissible to receive a retirement pension, even if it exceeds the amount contributed, because it is a reward for service, and there is no doubt about its permissibility. It is obligatory to fulfill the conditions agreed upon with the insurance company, based on the Almighty's saying: ﴿O YOU WHO HAVE BELIEVED, FULFILL [YOUR] CONTRACTS.﴾ Therefore, if the company stipulates that the employee must not have another job to be eligible for the salary, it is obligatory to fulfill that condition; otherwise, the employee must relinquish the salary.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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