Working for a cooperative insurance company

14-1-2010 | IslamWeb

Question:

Assalamualaikum dear Sheik !
I have received a job offer from a Insurance Company operating in Damam Saudi Arabia. The company is publicly listed in the stock market and operates as a "Co-opertaive insurance" company. The management of the company claims that they are "Sharia compliant" and they regulate as per the guidelines given by the Saudi Arabian Monetary Agency (SAMA) which is the key monitoring body of the financial institutions operating in the Kingdom. But to my knowledge there is no formal Sharia board to monitor internal activities in this company. Also, as per my limited knowledge, although conceptually "Co-operative insurance" concept is accepted as "islamic" by the Ulama, conceptually it is to manage an entity with no profit motive for the general benefit of the public. Further, I have heard from Ulemas that it is better to stay away from Insurance. Hence, I'm in a Dilema to know whether I should accept this offer to work in this Company or not. In the event its allowed under what conditions it is? Jazhakhalla khairan for your help!

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Answer:

All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad is His slave and Messenger.

 

Cooperative insurance is permissible and the scholars stated that Cooperative insurance is permissible as per the Fatwa of the Council of Senior Scholars in Saudi Arabia and the reports of the Fiqh Committee. Therefore, you are permitted to work in this company if its activities are in cooperative insurance and not in commercial insurance.

You may also make sure about the nature of its activities by asking the scholars who know this company and its activities in Saudi Arabia.  

Allaah Knows best.