Kind: captions
Language: en
But fordul.
Our topic for today's lesson is
insurance.
And insurance is something that is
unfortunately
has spread among the Muslims
equivalent to how cancer does. And you
rarely find any transaction especially
in the western world that has no
insurance. Every single thing is being
insured.
Pop stars ensure their voices, their
limbs.
Sportsmen ensure their craft and
the sport they play in.
Antique owners,
people insure every single thing you can
think of nowadays. Even doctors
ensure their practice. Why? Because of
the frequency of lawsuits.
And this cripples
the society. It cripples people from
functioning
and being productive.
Insurance as we know it has two
branches.
commercial
and corporate
and
the widely known
insurance is the commercial insurance.
This is what everybody knows about. You
pay a premium
and this premium is a negligible amount
compared to what we
may compensate you if any of the damages
take place.
So you have life insurance. You pay a
premium every year. And if the person
insured dies,
the beneficiaries
hit the jackpot.
There is medical insurance, there is
property insurance, there is car
insurance,
all types of insurance.
and the company takes the premiums.
Knowing that
the possibility of people losing
or having such damages taking place is
negligible.
Even some German experts
say that what is given back
for damages when people
insure
after their premiums does not even reach
almost 3%. Imagine
the companies are doing 97%
profit
of their work while the customers get
only less than 3%.
This is the commercial
type of insurance and it includes
a number of haram.
It includes huge ambiguity
because
when a person pays the premium, he
doesn't know what he will receive. I
have a friend who's been insuring his
cars,
full insurance,
not third party. know the the max
against theft, against natural
disasters, uh against um all all types
of insurance. And he's been doing this
for about like 15 years. And he has like
three or four cars.
And during these three these 15 years,
he had never had any accident.
So imagine the amount of money he's
paying annually
multiplied by 15 where he got zero.
And there is also ambiguity
upon
the insurance company itself.
So they're happy for a number of years
collecting people's premiums and one day
earthquake happens
and everything is destroyed.
People want their money to be
compensated.
Insurance company says we don't have
that much.
the insurers or or the clients say it's
none of our business. So the company
goes to the banks, borrows with huge
amounts of interest
and pays back its clients.
Also, it includes gambling because this
is a form of gambling. You pay premium,
you may win the jackpot and you may not
get a thing.
And it also includes
al and
when you pay little and you get much
much more and this is delayed from when
you have paid. All of these factors make
the commercial insurance which is what's
prevailing haram.
What is the Islamic alternative?
The Islamic alternative is
theoretically known as corporate
insurance.
What's the difference?
In commercial insurance, you're paying a
premium
with the guarantee that you'll get an X
amount for damages if something happens.
And it's not on your business whether
they can afford it or not. The company
is obliged. They borrow by they steal.
They do whatever they do. I don't care.
I paid a thousand and I was in an
accident. The damages are half a mill.
They're obliged to pay it off.
In corporate
insurance,
it is not something that you pay
in exchange of something you may
receive. Rather,
it is paying a x amount of of money,
call it premium,
with the intention of a gift.
What do you mean? See this is an Islamic
concept that was found at the time of
the prophetam
existed since that time till date in
tribes and in big families where every
month you give a small donation.
You don't expect anything back. It's a
donation and it's put in a pot or a
portfolio
and they gather this money
with conditions
that all of us
the 10,000 participants who donated
did not give a premium. It's a donation
to help one another.
You don't expect anything of it. If, may
Allah forbid, something happens to one
of us of these 10,000 contributing,
that person's house was burnt to the
ground, his car had an accident, someone
uh is sick, needs uh medical attention.
We take from this pot, from this
portfolio, and give that person whatever
he needs.
This way we're cooperating with the
group.
So we keep on giving to this person to
this person to this person. After 7 8
months
the money depleted. We have nothing.
I had a car accident. I go to the
management.
I showed them the car uh report, the
traffic reports for the accident and
said, "I need 2,000 of repairs." And
they say, "Sorry, love. We don't have
any funds. That's not fair. I've been
paying 200 for the past couple of
years." He said, "I've
been paying so that we would help one
another.
Usually
the money far exceeds the needs like the
German expert said and they keep on
piling and piling and piling which which
would help and uh the community.
Theoretically speaking, this is fine
because once the money is depleted and
there's nothing in the pot in the
portfolio,
everybody acknowledges this and no
complaints.
Unfortunately, some quote unquote
corporate insurance companies claiming
to be Islamic in their policy and
procedure, it says that once the money
is depleted,
then the management is forced to go to
the shareholders,
borrow from them, promising them to give
them shares as profit, which is
camouflaging haram interest
over the next 5 years or 10 years and
this is not permissible but again we're
talking about theoretically and what is
being practiced in theory it is halal
the Islamic councils the mash the
scholars and others say this is
permissible
in theory but unfortunately what's being
practiced has to be um revisited
and audited
like so many Islamic banks and so many
Islamic financing companies claiming to
be Islamic when actually they are not.
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