Fatwa #1498315 March 2007United States of America
I am running a small business of courier business (PO boxes, Fedex, Ups, Dhl, Money order and Money Transfer etc)....
Question
Mufti Sahib I live in California USA, and I am running a small business of courier business (PO boxes, Fedex, Ups, Dhl, Money order and Money Transfer etc), I am sharing the property with our another muslim brother who do the vehicle and home insurance in the same premises, I have started this business over one and a half year and there is no income I am getting in from it truth is I am paying rent from my pocket, now I have decided to close the business but my friend who do the insurance business ask me to be partner with him in his business because he has open another location for the same business and he is short handed at this location. I want to know is this is permisable to do the insurance business in our religion or not. Please reply me so I can tell my decision to my friend. We will than merge both business and become a partnership.
Answer
In the name of Allah, Most Gracious, Most Merciful
Assalaamu `alaykum waRahmatullahi Wabarakatoh
It is not permissible to invest in a business that deals in insurance as this entails engaging in Riba (interest) and gambling.
( Fatawa Rahimiyyah, Ad Durrul Mukhtar)
الربوا هو فضل خال عن عوض بمعيار شرعي لأحد المتعاقدين في المعاوضة. (الدر المختار)
And Allah knows best
Wassalam
Ml. Suhail Tarmahomed,
Student Darul Iftaa
Checked and Approved by:
Mufti Ebrahim Desai
Darul Iftaa