What is the ruling on the amount paid by the insurance company in the event of injury or death; is it impermissible (haram) or permissible (halal)?
The prevalent view is that the aforementioned insurance is commercial and forbidden by Islamic law. Therefore, it is not permissible to enter into it unless the employee is coerced into it, in which case he is allowed to take back only the amount he was forced to pay, and no more. If the insurance is cooperative and mutual, then there is no objection to subscribing to it. However, if the company itself deals with the insurance company and pays from its own funds without a direct relationship with the employee except in the event of an injury, then there is no objection to taking an amount that does not exceed what the company paid to the insurance company; because taking anything in excess is considered consuming wealth unjustly.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
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- Original fatwa ID
- 101365
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- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
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