Participate in Islamic insurance 

Assalamu ' Alaykum, sir Ustadz. Is Islamic educational insurance in accordance with Islamic guidance,? I asked my friend, he said, the insurance money (our money) was used for business, then later if it was profitable, it was given to us some percentage. But if you lose, your money stays that much, but you don't get the percent. Also, Islamic banks, is that in accordance with Islamic law? Thank you. Assalamualaikum.

Answer:

Wa'alaikumussalam warahmatullah.

Insurance transactions between us and Islamic banks are " deposit money ". If later we need, we will take the money. Where can we get "profit-sharing", while we have no loss at all if it turns out that the business that uses our money capital fails? Isn't this the same as usury (riba)?

Conventional insurance with all kinds of life insurance, merchandise insurance etc. is forbidden because it contains things that are forbidden in the Shari'a such as gharar (obscurity), usury (riba), taking people's property without rights etc.

As for insurance cooperation/help ( ta'min ta'awuny ), where a group of person collects money then if someone gets a disaster then is helped by the money, then this is allowed because his intention is pure cooperation in goodness and helping people in need, not seeking profit from what he paid. 
(See Fatawa Al-Lajnah Ad-Daimah 15/266)

Some Shari'ah life insurance that already practiced this day, there are those who try to recover/giving back some of the customer's funds when there is no accident in the specific period of time, but this still cannot come out of the elements of gharar (uncertainty), gambling (Maysir), and usury (riba) (if returning the same or more than the customer paid ) Similarly, the intention of most customers is not due to Sadaqah as in ta'awuni ta'min, but because they want to take advantage and profit.

Insurance Law for Employees

Question:

I want to ask about the insurance that is currently rampant. I know that the law of participating in insurance is haram because there is a characteristic of gharar (please correct if I wrong).

However, the question is, what if we are included in health insurance by the company where we work? And keep in mind, that the company that pays the premium is the company itself. Can we use the insurance?

Likewise with Employees insurance or old age insurance that is usually included by each employee company. And we need to know that our salary is cut by a percentage of that. Can we join the insurance? Then are we allowed to take only the basic amount that has been deducted from our salary for that when the time has arrived (usually it can be taken in the 5th year or when we retire)? Or absolutely no to all for that insurance fund?

Answer:

Alhamdulillah, salawat and salam greetings may always be bestowed upon the Prophet Muhammad, his family and sahabah (Companion).

Responding to your question about addressing insurance that has been regulated by the company or government agency where you work, then here I will answer, the answer from the Member of the Kingdom of Saudi Arabia Fatwa Committee:

...

[Question] 
The red rooster (Fire) has crushed a Muslim shop, and consumed almost everything in it. And because since a few years ago he had insured the store, the insurance company paid him the entire amount of the loss. What is Allah's law about the money he received, especially the contributions he had deposited over the years were not comparable, even though only half of the insurance money he received. Whereas you know that some countries require insurance?

[Answer] 
This type of insurance is commercial insurance, and it is prohibited; because in the insurance there is an element of riba, gharar (uncertainty), and the practice of consuming other people's property in a way that is not justified. And the shop owner you mentioned, is allowed to take some deposit money that he ever paid to an insurance company. While the rest, it should be given to the poor, or used in other social activities. And he should immediately stop himself from being a customer of the insurance company.

Wabillahit Taufiq, and may the Salawat and Salam always be bestowed upon the Prophet Muhammad, his family and friends. "

...
Thus, if there is a claim, then you can take a fee that has been deducted from your salary and the company is paid to the insurance company. Whereas the rest, you channel it to social channels not with the intention of giving charity but leaving yourself from Haram (forbidden) property. And if there is no claim, then you can take back the fee that the company has paid the total amount of your salary deductions for 5 years or when you retire. 

Wallahu a’alam bisshowab.

Allah knows well.


This post Link (For references): 

https://yourdakwah.blogspot.com/2018/08/islamic-insurance-law.html

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