Why can't you work in Insurance?

Salaams

Sounds like an ignorant question I know.

As far as I know insurance is an unislamic principle and hence muslims should stay away from it. However, I found myself talking to a sister who claimed that her perfect job would be to work in Insurance. I had to stop her there and say Insurance was an unislamic principle since we shouldnt be putting a price on things we are unable to prevent - we are not in control - Allah swt is.

She wasn't convinced with this statement and started throwing back questions such as what about car insurance, house insurance e.t.c.? I was frustated with myself for not providing a more substantial answer backed up with quran/hadith.

I know there are some knowlegdable people on these forums - so I would appreciate if you could enlighten me and help me fill this big knowlegde gap of mine!

Oh and if you know anything about 'Actuary' and whether this is permissible that would be great too.

I really want to get back to her - and say here, heres the evidence you need.

Wa-alaikum salaam

Question:
I heard that insurance is haraam, whether it is cooperative or otherwise. What should I do, as I have insurance on my car and my driving licence and I intend to get health and life insurance too?.

Answer:
Praise be to Allaah.

Insurance is divided into commercial and cooperative types, between which there are differences which are explained in the answer to question no. 36955 (http://www.islam-qa.com/index.php?ln=eng&ds=qa&QR=36955). Cooperative insurance is permissible if you adhere to the conditions mentioned in the question referred to, but it is hard to find. Some companies claim that they adhere to cooperative insurance but in fact they do not and their insurance is commercial.

Secondly:

If a person is forced or required by the state to take out insurance on his driver’s licence or car, there is no sin on him if he takes out insurance in that case, but he should limit himself to that which will ward off harm from him; he does not have the right to take out comprehensive insurance when there is third party insurance available, because one of the basic principles of sharee’ah is that things are permitted only to the extent that is necessary. See the answer to question no. 45918.(http://www.islam-qa.com/index.php?ln=eng&ds=qa&QR=45918)

Thirdly:

It is not permissible to take out health insurance or life insurance. See the answer to question no. 10805 (http://www.islam-qa.com/index.php?ln=eng&ds=qa&QR=10805) and 39474. (http://www.islam-qa.com/index.php?ln=eng&ds=qa&QR=39474)

And Allaah knows best.


http://www.islam-qa.com/index.php?ref=83035&ln=eng&txt=insurance

JazakhaAllah - but I was hoping that someone could put it in layman terms for me.