Newsletter 6
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NEWSLETTER ISSUE #6 RABI UL AWWAL - RABI UL AAKHIR 1442 | OCTOBER - NOVEMBER 2020 INSURANCE - AN ISLAMIC PERSPECTIVE Commercial Insurance is defined as: “An arrangement by that the company may lose money if the customer makes which a company or the state undertakes to provide a a claim greater than the premium he has paid. In the same guarantee of compensation for specified loss, damage, manner, there is a possibility that the customer may lose his illness, or death in return for payment of a specified pre- premium to the company if he makes no claim. Yet there is mium.” also the possibility that he may gain money should he have to make a claim greater than his premium. This is a game of In a commercial insurance policy, there is a transaction be- chance. Furthermore, this possibility is based upon an event tween the customer and the insurance company. The cus- such as an accident, illness, loss, etc. which may or may not tomer pays the insurance company a necessary premium occur. This would constitute of ‘Gharar’. (sum of money) in exchange for money that will be given to him contingent upon the occurrence of an event such 3) Gharar: “Gharar is that transaction in which the result as an accident, illness, loss, etc. The company does not is uncertain” The great companion of the Prophet Sallallahu render any service in receipt of the premium paid by the alayhi wasallam) said: “The Prophet (Sallallahu alayhi wasal- customer. lam) has prohibited the transaction of Hasa and a transaction involving uncertainty” Gharar is the involvement of risk due If an accident, loss, illness etc. does not take place during to uncertainty. Gharar is found when the product, price or the policy term, he will not receive any money and his pre- time period in a transaction is uncertain or dependent upon mium will not be returned to him. This policy trespasses an uncertain factor. Hence in commercial insurance, the oc- two violations of Shari’ah law: currence of the event upon which the company would pay the customer is uncertain. There is also uncertainty as to the 1) Riba: Riba is a stipulated extra amount earned that is amount payable to the insured as such payment is meas- not in lieu of anything”. Shari’ah has forbidden riba. Allah ured according to the loss sustained. Therefore, insurance Ta’ala says: “Allah has permitted trading and has forbidden manifestly and inherently involves uncertainty. riba” In a commercial insurance policy, if an event such as an accident, illness, loss, etc. takes place, the amount of Considering the ethical side of commercial insurance, we money paid by the company to the insured is a consid- find other perturbing effects that commercial insurance eration of the amount of premium (sum of money). It is a may cause. One of these is the issue of ‘moral hazard’. Moral well-settled principle of Shari’ah that where money is ex- hazard is defined as: Lack of incentive to guard against risk changed for money, both the amounts should be equal in where one is protected from its consequences. e.g. through quantity. Any increase on either side is riba which is clearly insurance. Although appealing to a non-participant, a com- prohibited by the Holy Qur’an and Sunnah. In commercial mercial insurance serves a purely capitalistic purpose. Thus, insurance, this principle is violated as the company will pay this instinct instils within the customer a sense of rapacity the customer more than his premium. and depravity which may make him carry out immoral acts such as fraud, for example: burning his property in hope of 2) Qimar: “Qimar is when two individuals are involved collecting the insurance proceeds. in such a transaction wherein each of them could lose or gain money from the other. This is Haraam through the sa- It should be remembered that since some types of commer- cred texts”. Shari’ah has forbidden qimar. Allah Ta’ala says: cial insurance are a mandatory legal requirement in some “Oh you who believe! Alcohol, games of chance, idols and countries for every citizen, one may use these insurances divining arrows are only an infamy of Satan’s handiwork. to the limit that fulfils the legal requirement, not more than Leave it aside in order that you may succeed” Hence in con- this. He should give the proceeds excess to his premium into ventional insurance, there is a possibility that the company charity. [Askimam.org | 34288] may gain the premium of the customer and lose nothing if a claim does not occur. Yet there is also the possibility DARUL IFTAA MALAWI | PO BOX 5085 | MOB: + 265 997 941 870 | EMAIL: [email protected] Q & A Mailto: [email protected] WhatsApp: + 265 997 94 18 70 Question: be regarded as transparent. Sa- Answer: Can I work as a bank teller in the lah will not be valid in such scarf. In principle, it is Makruh-e-Tahri- bank? Any Salah that was performed in mi (prohibitively disliked) for such scarf must be repeated. women to pray Salah with Ja- Answer: [Bahrur Raiq 1/283, Ahsanul Fatawa ma’ah. ‘Ali (Radiyallahu ‘Anhu) A bank teller is a staff member of 3/399 – MH Saeed] is authentically reported to have the bank whose job entails deal- prohibited women from be- Question: ing directly with the public and ing Imams in Salah. Rasulullah I never did Sehri and I am think- handling routine banking trans- (Sallalallahu akayhi wasallam) ing to do my qadha fast today, actions like deposits, withdraw- has also mentioned: ‘There is is it possible to fast it if you ha- als, etc. If this is your job descrip- no good in the congregation of ven’t eaten anything? tion, then there is leeway to work females… [Raddul Muhtar; 1/565 as a bank teller. [Fatawa DUZ 5/659] – Dar Al Fikr, I’laus Sunan 5/242-4 – Answer: Idaratul Qur’an] Question: It is a condition for the validity If a lady wears a scarf for Salah of the Qadha fast that the inten- Question: which isn’t see through but tion be made before Subh Sadiq Should we recite Surah Fatihah when they go in the sun you (true dawn). [Hindiyyah 1/196 – behind the Imam in Salah or can make out the outline of the Fikr] should we remain Silent? hair, will Salah be permitted on Question: that scarf? Can we use Zakat money for a Answer: waqf house? Answer: A Muqtadi (person perform- In principle, the ‘awra (area to be ing Salah behind the Imam) Answer: concealed) of a woman inside Sa- should remain silent regardless It is not permissible to use Zakat lah is the whole body except the of whether it is a Salah wherein funds to repair any house includ- hands, face, and feet. Everything the Imam recites loudly or softly. ing a waqf house. Zakat must be besides the hands, face, and feet He should neither recite Surah given to a poor needy Muslim must be completely covered. Like- Fatihah nor anything else. He who is a legitimate recipient of wise, a woman’s clothing during should remain absolutely quite. Zakat. [Tabyeen Al Haqaiq 1/251] Salah must be thick (non-trans- The Qiraa’ah of the Imam is suf- parent) and loose-fitting so that ficient for the Muqtadi.[Badaius Question: the shape of her body cannot be Sanai’ 1/110 – DKI] Can ladies make their own Ja- exposed or made out regardless mat for praying any Fardh Sa- if she is praying in darkness or Question: lah? in the light. In your query, you I want to purchase a house. A mention that when the scarf is in small portion will have to be sunlight, the outline of the hair is financed which I am intending visible. In such case, the scarf will to take from an Islamic bank. “ALLAH DOES NOT LOOK AT YOUR APPEARANCE OR YOUR POSSESSIONS; BUT HE LOOKS AT YOUR HEART AND YOUR DEEDS.” [MUSLIM] But I am hesitant due to not Answer: a foetus after 120 days for any being sure if Islamic Finance is A Masbooq should only recite reason. [Raddul Muhtar; 3/176 – correct in its current form. the Tashahhud in the last Rakat Dar Al Fikr] of the Imam and thereafter re- Answer: main silent or repeat the Tashah- Question: In order to determine Shairah hud or ideally he should recite I found some money in town, compliancy in dealings, the fol- the Tashahhud slowly. Durood- however I am unable to trace lowing is necessary: e-Ibrahim and Du’aa should be the owner, please advise as to recited after fulfilling the last what I should do with the mon- 1) The concept must be accord- Rakat of his missed Rakats. [Rad- ey? ing to Shariah. dul Muhtar; 1/511 Dar Al Fikr, Ahsanul Fatawa 3/381 – HM Saeed] Answer: 2) The contract must express We advise you to continue to do the Shariah concept correctly. If Question: your best in locating the owner the terms and conditions of the Is it permissible to keep a dog of the money. transaction in the contract are as a pet? incorrect, then the contract will If after searching extensively not be Shariah compliant. Answer: the owner is still not found and It is not permissible to keep a dog there is no hope of finding him, 3) Correct implementation of the as a pet. then the money should be given transaction. If the concept and in charity [sadaqah]. If you are contract are both Shariah com- Nabi (Sallallahu alayhi wasal- poor yourself, you can use the pliant, it is equally important lam) said: “Angels do not enter a money for your personal use.