FatwaPerlisTransactions & Finance
Hukum Syarak Berkaitan Insurans
What is the ruling on life insurance provided by a company for its employees, and may employees receive its benefits?
Short answer
Commercial insurance contracts are prohibited in all forms because they involve gharar (uncertainty), gambling and the wrongful taking of others' property.
A reference, not a fatwa. First sentence of the summary below — read the original fatwa and consult your state authority before acting.
- Authority
- Perlis State Mufti Department
- Date
- Status
- Opinion (irsyad)
- Series
- Panduan Hukum
- Topic
- Transactions & Finance
No evidence of gazettement in the source — this is not a gazetted fatwa.
Summary
Commercial insurance contracts are prohibited in all forms because they involve gharar (uncertainty), gambling and the wrongful taking of others' property. Entering into such a contract is therefore haram if employees have a choice. However, if the company insures all employees with its own funds and deducts nothing from their salaries, there is no wrong in the employees or their heirs taking the insurance money given to them.
Written in our own words from the original fatwa — check the source before acting on it.
Kontrak insurans perdagangan adalah kontrak yang diharamkan dalam semua bentuk dan rupanya kerana mengandungi unsur gharar (ketidakpastian), perjudian, dan pengambilan harta orang lain secara batil.
Read the full fatwa on the Perlis website (new tab)
How to cite
Cite the original fatwa and its authority. Rujuk Fatwa is only where you found it.
Perlis State Mufti Department. “Hukum Syarak Berkaitan Insurans”, 17 June 2025. https://muftiperlis.gov.my/index.php/panduan-hukum/1128-hukum-syarak-berkaitan-insurans. Found via Rujuk Fatwa: https://rujukfatwa.com/en/fatwa/ruling-company-life-insurance-for-employees/