Is it permissible to undertake an administrative role in a reinsurance company?

31 Aug 2013 · 24 Shawwal 1434 AH1 min readFatwa 26767English

Question

Is it permissible to undertake an administrative role in a reinsurance company?Some of the

Primary functions will be:

· Take part in administration audits and provide data in required format for functional audits.

· Participate in the analysis of monthly statistics produced by administration.

· Take ownership of clients, and be responsible for converting client data and treaties on to the appropriate system, including gathering treaty information from Pricing and Marketing teams and analyse

· Creating and testing mapping specifications.

· Set up treaties on the administration systems, both assumed and retrocession and load premium rate tables.

· Verify data clean-ups carried out by IT teams.

· Extract and document business requirements.

· Data analysis.

· Provide support and direction for system User Acceptance Testing.

· Provide Microsoft, Access and SQL assistance to others in the Administration Team.

Answer

In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

Conventional Insurance constitutes interest,[1] gambling[2] and excessive uncertainty (Gharar)[3] all of which is prohibited in Islam[4].

It is not permissible to be an administrator in the company in reference as you will be advancing the core aims and objectives of the company which are un-Islamic[5]. Verily Allah says:

Translation: And do not cooperate in sin and transgression[6].

And Allah Ta’āla Knows Best

Hanif Yusuf Patel

Student Darul Iftaa
UK

Checked and Approved by,
Mufti Ebrahim Desai.

www.daruliftaa.net

References (Arabic / Urdu sources)

لا تعاونوا علي الإثم والعدوان و

[1] The prohibition of Riba:

الذين يأكلون الربا لا يقومون إلا كما يقوم الذي يتخبطه الشيطان من المس ذلك بأنهم قالوا إنما البيع مثل الربا وأحل الله البيع وحرم الربا

[Al-Qur`an, 2:275]

يا أيها الذين آمنوا اتقوا الله وذروا ما بقي من الربا إن كنتم مؤمنين. فإن لم تفعلوا فأذنوا بحرب من الله ورسوله وإن تبتم فلكم رءوس أموالكم لا تظلمون ولا تظلمون

[Al-Qur`an, 2: 278-9]

فان تأجيله لا يصح ... وعلي اعتبار الانتهاء لايصح لانه يصير بيع الدراهم بالدراهم نسيئة وهو ربوا

[Al-Hidayah, 3:76]

[2] يآ ايُّها الَّذين امنوا انّما الْخمر والميسر والانصاب والازلام رجس من عمل الشيطان فاجتنبوه لعلكم تفلحون

[Al-Qur`an, 5:90]

[3] عن أبي هريرة قال نهي رسول الله عن بيع الحصاة وعن بيع الغرر

[Sahih Muslim: 3170]

[4] ولا خلاف بين أهل العلم في تحريم القمار

[Ahkam al-Qur`an li al-Jassas, 2:465, Dar Ihya at-Turath al-Arabi, Beirut]

وهو حرام بالنص القمار ...

[Radd al-Muhtar ala ad-Durr al-Mukhtar, Kitab al-Hadhr wa al-Ibahah, 6:403]

Also see: [Fatawa Mahmoodiyyah, 16:387-340; Takmilah Fath al-Mulhim, 1:320; Ahsan al-Fatawa, 7:24-5]

For a detailed discussion see: [Islam aur jaded ma`ashee masa`il, 3:307-19, Idarah Islamiyaat]

[5] عن جابر قال لعن رسول الله صلى الله عليه وسلم آكل الربا وموكله وكاتبه وشاهديه وقال هم سواء

[Sahih Muslim: 3403]

(وَكَاتِبَهُ وَشَاهِدَيْهِ) : قَالَ النَّوَوِيُّ: فِيهِ تَصْرِيحٌ بِتَحْرِيمِ كِتَابَةِ الْمُتَرَابِيَيْنِ وَالشَّهَادَةِ عَلَيْهِمَا وَبِتَحْرِيمِ الْإِعَانَةِ عَلَى الْبَاطِلِ

Mirqat al-Mafateeh, 5:1916, Dar al-Fikr

[6] [Al-Qur`an: 5:2]

Also see [Fatawa Dar al-uloom Deoband, 14:491]

من يشفع شفاعة حسنة يكن له نصيب منها ومن يشفع شفاعة سيئة يكن له نصيب منها

[Al-Qur`an, 4:85]

Answered by: Hanif Yusuf Patel
Checked & approved by: Mufti Ebrahim Desai

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Questions about this ruling, answered only from the archive with sources.

Where scholars differ, it’s safer to take the more cautious view.

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