Ihyaaud Deen An Effort to Revive Deen in Totality
Allah Ta‘ala has created this world as a place of cause and effect, where man fulfils his needs through worldly means. However, Allah Ta‘ala has commanded man to utilize the halaal means to fulfil his needs, and prohibited him from fulfilling his needs through haraam means.
In the Mubaarak Hadith, Rasulullah (sallallahu ‘alaihi wasallam) commanded the ummah to only utilize halaal means to fulfil their needs and requirements, and refrain from adopting haraam means.
Rasulullah (sallallahu ‘alaihi wasallam) said, “Fear Allah Ta‘ala, O people, and make a moderate effort in searching for worldly sustenance. If any of you regards his worldly sustenance to be delayed then he should not seek it through avenues whereby he will disobey Allah Ta‘ala, for indeed the grace of Allah Ta‘ala (i.e. barakah in wealth) cannot be acquired through engaging in sins (and adopting haraam means to acquire it).” (Mustadrak Haakim #2136)
While living in this worldly abode, we are all exposed to risks and dangers that threaten the safety of our lives and wealth. In the face of these dangers, some people resort to taking out insurance policies and schemes in order to secure themselves against potential future losses. However, it should be borne in mind that all prevalent forms of conventional insurance have been ruled as prohibited and haraam in Islam.
Adopting Halaal Means and Halaal Precautionary Measures
Some people who wish to prove the permissibility of insurance present the argument that one should tie his camel, and thereafter, place his reliance on Allah Ta‘ala, as it is recorded in the Hadith that once, Rasulullah (sallallahu ‘alaihi wasallam) advised a Sahaabi saying, “Tie your camel and then place your trust upon Allah Ta‘ala.” (Sunan Tirmizi #2517)
Thus, the impression these people give the public through presenting this Hadith is that Shari’ah commands us to adopt the means, and in insuring one’s wealth and assets, one is adopting a form of means to protect and secure one’s wealth.
However, this argument they present in trying to prove the permissibility of insurance is incorrect. The reason for this argument being incorrect is that Islam does not stop one from adopting precautionary measures to save oneself and family from harm – on condition that the precautionary measures are halaal. It is permissible for one to install alarm systems, burglar guards, and employ armed response to protect oneself and one’s family from any contingent fear or harm.
In the battle of Uhud, Rasulullah (sallallahu ‘alaihi wasallam) wore a double armour when coming out for jihaad. This was to teach the ummah that adopting the permissible means to protect oneself is not against tawakkul (placing one’s trust upon Allah Ta‘ala). (Sunan Abu Dawood #2590)
Similarly, a believer is commanded to adopt a means of earning a livelihood to sustain himself and his family. However, one should understand that when adopting the means, we have been commanded to only adopt the halaal means and we have been strictly prohibited from utilizing haraam means.
If a person steals or gambles in order to acquire sustenance and feed his family, then what will be said regarding such a person? Undoubtedly, such a person has adopted a means to sustain himself and his family, however since the means which he has adopted is haraam, the food that he consumes and feeds his family will be ruled as haraam and such a person will be declared a criminal in the court of Allah Ta‘ala.
The problem, however, in regard to insurance schemes and policies is that they are haraam means which one is adopting to gain security and protection. Hence, just as all other aspects of our life must conform to Shari’ah, similarly the measures of precaution that we take must also conform to the laws of Shari’ah and should not, in any manner, exceed the limits prescribed by the Quraan Majeed and Sunnah.
Insurance – A Combination of Gambling and Riba (Interest)
After scrutinizing the various forms of conventional insurance schemes which are prevalent today, the Ulama have concurred that these insurance schemes are haraam as they contravene and violate the laws of Islam mentioned in the Qur’aan and Sunnah.
Upon examining these insurance schemes, one realizes that they contain the elements of riba (interest) and qimaar (gambling) in them. These two elements are so serious that they render the insurance contract invalid, as stated by the Fuqahaa.
The definition of gambling, according to all the four mazhabs, is for one to pay for something which he is uncertain of acquiring. Any transaction wherein one pays for something which is suspended upon an uncertain event is in actual fact gambling.
One is uncertain as to whether one will be hijacked or meet in an accident or one’s house or business will be burgled in the future or not. One is required to promptly pay the monthly insurance premiums (otherwise the insurance policy will be cancelled), but one does not know whether one will face a contingent event in the future due to which one will be paid out by the insurance company.
If one does not face any tragedy, one will lose all one’s money and get nothing, and if one does face a tragedy and receives a pay-out, then too, one does not know how much one will be receiving from the insurance company. Hence, we see the element of gambling glaringly found in an insurance policy.
Furthermore, if one receives the insurance pay-out and one is paid more than the amount one had paid to the insurance company in monthly premiums, then in this case, the extra amount one has received is riba (interest).
Thus, it is evident that the insurance scheme is a combination of gambling and interest which are both major sins and have been severely condemned in Shari’ah. There are severe warnings in the Qur’aan Majeed and Mubaarak Ahaadith for those who get involved in the grave sins of gambling and riba. It is for these two reasons that all prevalent forms of conventional insurance have been ruled by the Fuqahaa as prohibited in Shari’ah.
Takaaful Insurance
When the topic of Takaaful Insurance is discussed, then unfortunately, some people do not associate it with conventional insurance and regard it to be permissible. The reason is that it is currently being marketed and promoted as a “halaal insurance” and a permissible alternative to conventional insurance. However, when one reflects and ponders over the matter, one realizes that the reality on the ground is something else.
Those people who advocate that Takaaful Insurance is permissible say that Takaaful is an Islamic model of insurance which has been approved by Shari’ah. They explain that the person giving the monthly premiums to the Takaaful company is actually giving it as a “donation”. Hence, just as one gives donations to musjids, madrasahs and Islamic institutes, and this is permissible and rewarding, similarly, in the case of contributing to the Takaaful company, one is receiving reward for every contribution one is making, as it is tantamount to giving it for deen. However, in the event where one faces a tragedy, then the Takaaful Insurance company will pay him out, as he is linked to this Islamic fund, and all the people contributing to the fund are helping each other.
If one has to reflect over the way the Takaaful Insurance operates compared to conventional insurance, then one will realize that there is no difference between the both. Apart from changing the name, the workings and operation of both is identical. In the case of conventional insurance, if one stops paying the monthly premiums, his contract is cancelled, and in the event of a tragedy thereafter, he will not be paid out anything.
Similar is the case of Takaaful Insurance. If one stops paying the Takaaful Company the monthly premiums, they will cancel his contract, and one year later, if he faces a tragedy and asks for assistance saying, “I helped you people out with donations in the past,” they will not look at him favourably and they will not help him.
Hence, just by changing the name, the reality will not change by Allah Ta‘ala, and it will not make this insurance “halaal” in any way. In fact, in the Mubaarak Hadith, Rasulullah (sallallahu ‘alaihi wasallam) prophesized the coming of such times before Qiyaamah where people will begin to change the names of things that are haraam to make it halaal. Rasulullah (sallallahu ‘alaihi wasallam) said, “People from my ummah (before Qiyaamah) will regard consuming wine to be halaal by merely changing its name.” (Sunan Abi Dawood #3689)
It should be borne in mind that in deen, when one gives a donation, then one gives the donation solely for the sake of Allah Ta‘ala to acquire reward in the Hereafter. One does not give a donation through which one will be entitled to claim something in the future. When a person gives a musjid a donation, he cannot claim anything from the musjid later on. Being able to claim for one’s donation and being entitled to some exchange refutes it being a donation in Shari’ah. Rather, this type of contract is a monetary exchange between two parties, and since this contract is a gambling and riba-based contract, it is no different to conventional insurance, and thus it is haraam for one to get involved in it.
It is obvious that all those people who are shifting from conventional insurance to Takaaful Insurance are only doing so for the purpose of them enjoying the same benefits of a conventional insurance. Otherwise, no person will wish to pay anything or give any “donations” if he is not going to receive a monetary benefit in return. If the “donors” are told that they will not get anything but reward for their donation, will they still donate their money to this scheme? Definitely not!
Takaaful Insurance – A Branch of Conventional Insurance
Apart from this, it should be noted that the so-called “Islamic Takaaful schemes” found today, in order to secure themselves, reinsure with conventional insurance schemes and are connected to them. In this case, when the Takaaful is under the umbrella of the conventional insurance scheme and is being secured by them, then for one to move from conventional insurance to Takaaful Insurance is akin to moving from a bigger umbrella to a smaller umbrella of the same type. How can this scheme be then regarded as something Islamic and permissible, whereas it is a branch of conventional insurance, through being secured by them?
Lamentably, in today’s times, we find that many people are shifting from conventional insurance to Takaaful Insurance, thinking that they are coming out of haraam and entering into halaal, as this is “Islamic Insurance”. However, this is not the case, rather they are involving themselves in riba and gambling, but doing it in the name of Islam and attributing it to Shari’ah – may Allah Ta‘ala save us!
