FatwaNationalTransactions & Finance
Insurans
What is the ruling on life insurance as operated by most insurance companies?
Short answer
The 16th Muzakarah of the National Fatwa Committee (MKI), held on 15-16 February 1979, ruled that life insurance as operated by most insurance companies is haram and a defective transaction (muamalah fasad).
A reference, not a fatwa. First sentence of the summary below — read the original fatwa and consult your state authority before acting.
- Authority
- National Fatwa Committee (JAKIM)
- Date
- Status
- Fatwa committee decision
- Series
- Kompilasi Pandangan Hukum Muzakarah Jawatankuasa Fatwa MKI (JAKIM, terbitan 2016)
- Topic
- Transactions & Finance
No evidence of gazettement in the source — this is not a gazetted fatwa.
Summary
The 16th Muzakarah of the National Fatwa Committee (MKI), held on 15-16 February 1979, ruled that life insurance as operated by most insurance companies is haram and a defective transaction (muamalah fasad). The contract was found inconsistent with Islamic principles because it contains gharar (uncertainty), elements of gambling and riba-based dealings.
Written in our own words from the original fatwa — check the source before acting on it.
insurans nyawa sebagaimana yang dikendalikan oleh kebanyakan syarikat insurans yang ada pada hari ini adalah haram dan sebagai suatu muamalah yang fasad
Read the full fatwa on the National website (new tab)
How to cite
Cite the original fatwa and its authority. Rujuk Fatwa is only where you found it.
National Fatwa Committee (JAKIM). “Insurans”, 16 February 1979. https://www.islam.gov.my/images/ePenerbitan/KOMPILASI_MUZAKARAH_MKI_2016.pdf#insurans. Found via Rujuk Fatwa: https://rujukfatwa.com/en/fatwa/ruling-on-conventional-life-insurance/