Islamic marriage advice and family advice

Is it halal to work for an insurance company?

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Salam Everyone,

Is it permissible to work for an insurance company just doing administrative task? The company has an investment division and that's the one I work for. So it's like two companies with the parent one being the insurance. I tried googling it but some people are saying that it's ok to work for one, once you are not doing any transactions that are interest related and some are saying that it's haram altogether. I know banks are not allowed but I am not sure about insurance companies. I am now on a contract with them so it will end eventually but I would like to know for future reference as well.

Thank you in advance for your help.



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1 Responses »

  1. Salaams,

    I won't be able to give you a firm answer, but I can understand your concern because I also work for an insurance company. You didn't, however, specify what kind of insurance you're meaning. Since there are all types, not all are considered haraam or problematic.

    From what I know, insurance for auto and home as they are usually legally required are not considered haraam by many scholars, because we are not advised to do anything against the laws of the land in general. So if Muslims, along with everyone else, are getting car and homeowner's insurance to comply with the laws, then logically Muslims working at these companies to provide the same wouldn't be any more sinful.

    Then there is health insurance. I've heard mixed opinions on whether health insurance is haraam, but when there is no scholarly consensus on an issue then a personal decision must be taken based on your own convictions. Health insurance companies provide a lot of services and many of the functions an employee does there is not exactly haraam. Usually the companies insure people by their employer's company, so an employee is only managing something that was agreed upon by two corporations.

    The last main type of insurance is life insurance, which most scholars say is haraam. Many would probably say working for a life insurance company is also haraam. However, what a lot of people don't consider in all these factors is that when it comes to halal and haraam, it's not really as black and white as it seems. There is a spectrum of things being strictly forbidden, to just mildly disliked. Also there are exceptions for everything 'forbidden' based on needs and circumstances, and a lot of lay people don't take into consideration the caveats that may apply to someone who lives in the west and could take an exception.

    Only a qualified scholar can appropriately guide someone through a maze like that. Unfortunately we don't have anyone here like that, so you will have to check in your locality to see if someone reputable is available. It would be helpful if they were very familiar with your local culture and islamic constraints coming from it, also. That way they can give you a balanced and fair opinion, not an extreme one based on a perfectly ideal and islamic situation.

    -Amy Editor

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