• Transactions & Dealings >> Interest & Insurance

    Question ID: 14202Country: India

    Title: Assalam O Alaikum Mufti Saheb, I would be greatful if you could answer these. 1. My cousin Brother works for ICICI Prudential Life insurance company as Unit Manager, he deals with policies where customer has to pay 1500 per month and after three years the company would give 75,000 instead of 54,000 that is paid as premiums. Is this dealing comes under Riba(Interest) based? If so who will Allah hold responsible for in Aakhirath?--Cutomer or The person from the BANK. Am very much worried if this is Intererst based transaction, because my cousin brother has involed allmost all our Khandaan and can say more than hundred people(Except my Family-though he tried, but was not successful) in these policies. 2.I am very much confused what RIBA(INTEREST) actuall is in Islam? What are its types? Can you please clarify me or can you please refer any name of a book that has complete information on RIBA in Islamic Shariyah? if you could also tell me any website, even that would be helpful. May Allah bless you!

    Question: Assalam O Alaikum Mufti Saheb, I would be greatful if you could answer these. 1. My cousin Brother works for ICICI Prudential Life insurance company as Unit Manager, he deals with policies where customer has to pay 1500 per month and after three years the company would give 75,000 instead of 54,000 that is paid as premiums. Is this dealing comes under Riba(Interest) based? If so who will Allah hold responsible for in Aakhirath?--Cutomer or The person from the BANK. Am very much worried if this is Intererst based transaction, because my cousin brother has involed allmost all our Khandaan and can say more than hundred people(Except my Family-though he tried, but was not successful) in these policies. 2.I am very much confused what RIBA(INTEREST) actuall is in Islam? What are its types? Can you please clarify me or can you please refer any name of a book that has complete information on RIBA in Islamic Shariyah? if you could also tell me any website, even that would be helpful. May Allah bless you!

    Answer ID: 14202

    Bismillah hir-Rahman nir-Rahim !

    (Fatwa: 996/802=L/1430)

     

    Giving 54000 and receiving 75000 is interest; since exchanging rupees with rupees with difference is haram due to being interest. Everyone involved in interest whether he receives interest, gives it, writes it or bears witness to it are equal in sin; all of them will be reckoned for in the hereafter.

    (2) For detailed information, study Maariful Quran 1:578. It is not possible to summarise the same in a short fatwa.

    Allah (Subhana Wa Ta'ala) knows Best

    Darul Ifta,

    Darul Uloom Deoband, India