What is the permissibility of the pension certificate from Misr Insurance Company, and is it permissible to apply for it, knowing that it is not a life insurance policy, and it can be availed at retirement age, or in cases of total disability or death?
Participation in commercial insurance is prohibited because it involves usury (riba), gambling (), and uncertainty (), and because it is an exchange of money for money with disparity and deferment. Resolutions have been issued by the Islamic Fiqh Academy and bodies prohibiting this type of insurance and considering it a legally invalid contract due to its significant gharar.
Commercial insurance is a contract of probabilistic financial compensation that involves excessive gharar, gambling, and riba al-fadl (excess in amount) and riba al-nasa' (deferment). It is considered a prohibited wager and an unjustified taking of others' money, and it entails an obligation that is not legally binding.
Cooperative insurance is considered the legitimate alternative, based on the principles of donation and mutual assistance.
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