Thursday, December 17, 2015

Why Interest is Haram?

1. Massive 'Call Money' Scam Takes Andhra Pradesh By Storm, 80 Arrested

Hyderabad:  A massive blackmail, extortion and sex racket linked to "call money" has been exposed in Andhra Pradesh, in which 80 people from different political parties have been arrested.

The police say the scandal operated in multiple districts and involved politicians, businessmen and so-called moneylenders. The Andhra Pradesh government has ordered a judicial probe into what has been dubbed the "call money racket."

Call money is a loan that is literally a phone call away, with money delivered at one's doorstep. The flipside is that the lender can demand it back at any time and if the borrower cannot repay, the lender can take away property.

The police say that in this racket, women were coerced into sexual exploitation.

"Women who are doing small businesses and borrow money to make ends meet, when they can't repay, they are exploited," said a woman.

The lenders demanded rates of interest that were as high as 120 per cent to 200 per cent. Promissory notes and blank cheques were taken against the loans.

The case surfaced after a woman in Vijayawada complained to the police that she was forced to give back Rs. 6 lakh when she borrowed only Rs. 1.5 lakh.

When they started investigating, the police uncovered the web of threats, coercion, extortion, sexual exploitation and even prostitution riding on the money-lending business.

Kanakaraju, who runs a small eatery, says he borrowed Rs. 50,000 and had been paying Rs. 500 every day for the past five years. Yet the lender has not returned his documents and promissory note. "They made my life hell," he said.

"The names of several ruling party lawmakers, ministers and other influential Telugu Desam Party leaders have come up in this shameful scam. Yet the chief minister has not taken any action," alleged YSR Congress president Jaganmohan Reddy, who took the case to the governor.

Andhra Pradesh Director General of Police JV Ramudu said there was no question of sparing anyone, irrespective of political affiliation.

Top sources told NDTV that an accused in East Godavari district, Nallmella Veera Venkata Sairam Reddy, has close links with the YSR Congress. The police recovered 500 promissory notes from him.

Chief Minister Chandrababu Naidu has said tough action will be taken against those involved and has asked district police to invoke Nirbhaya Act in case there is an instance of sexual exploitation.

This Is What Quran Explained About Intrest.

الَّذِينَ يَأْكُلُونَ الرِّبَا لَا يَقُومُونَ إِلَّا كَمَا يَقُومُ الَّذِي يَتَخَبَّطُهُ الشَّيْطَانُ مِنَ الْمَسِّ ذَٰلِكَ بِأَنَّهُمْ قَالُوا إِنَّمَا الْبَيْعُ مِثْلُ الرِّبَا وَأَحَلَّ اللَّهُ الْبَيْعَ وَحَرَّمَ الرِّبَا فَمَن جَاءَهُ مَوْعِظَةٌ مِّن رَّبِّهِ فَانتَهَىٰ فَلَهُ مَا سَلَفَ وَأَمْرُهُ إِلَى اللَّهِ وَمَنْ عَادَ فَأُولَٰئِكَ أَصْحَابُ النَّارِ هُمْ فِيهَا خَالِدُونَ  (البقرة (275)

Those who consume interest cannot stand [on the Day of Resurrection] except as one stands who is being beaten by Satan into insanity. That is because they say, "Trade is [just] like interest." But Allah has permitted trade and has forbidden interest. So whoever has received an admonition from his Lord and desists may have what is past, and his affair rests with Allah. But whoever returns to [dealing in interest or usury] - those are the companions of the Fire; they will abide eternally therein.

البقرة (276)يَمْحَقُ اللَّهُ الرِّبَا وَيُرْبِي الصَّدَقَاتِ وَاللَّهُ لَا يُحِبُّ كُلَّ كَفَّارٍ أَثِيمٍ

Allah destroys interest and gives increase for charities. And Allah does not like every sinning disbeliever.

Story First Published: December 16, 2015 23:37 IST

Wednesday, December 16, 2015

Do not kill yourself by grief.

Sa'd was a student  at the university. Once he was absent for a whole week, so when I met him;

I said "I hope everything is fine, Sa'd? 
"Nothing's wrong at all, I was just a little busy",Sa'd replied. It was, obvious that he was grief stricken. I said to him, "What's the news?"

"How old is he?" I asked."Seventeen years old"he replied.

I said,"I pray to Allah that He cures him and bless his brothers his situation had an impact on me, but I remained firm and said, "Dear Sa'd, in short, do not kill yourself with grief. Nothing will afflict us except what Allah has already written: Then i consoled him and left. Yes, do not kill yourself with grief, for that will not lighten your troubles.

I remember that sometime ago I went to al Madinah al Na­bawiyya and met up with Khalid. He said to me, "What do you say if we visit Dr. 'Abdullah?"

I said, "Why? What's the news? He replied, "For condolences. "

For condolences? I remarked, in surprise.

The Doctor was a righteous man beyond fifty years of age, but never the less, a human being with feelings and emotions. He had a heart in his chest, and two weeping eyes, and of course, a soul that became happy and sad.

When he heard the terrible news, he prayed over them and

He began to wander about his house in bewilderment.He would pass by toys that lay there untouched for days, because the Khulud and Sarah who would play with them had died.

He would return to his bed which hadn't been made because Umm, Salih, his wife, had died.

He would pass by Yasir's bicycle which hadn't moved for days since the one who used to ride it had died. 
He would enter his eldest daughter's room to see her wedding suitcases arranged and her clothes lying on her bed.She died when she was in the middle of arranging her wedding clothes.

Glory,be to the One who gave him patience and made him strong!

Guests would come to his house and bring coffee along with them,as he didn't have anyone to help him prepare anything for them.What is amazing is that if you were to see the man receiving condolences, you would think that he was the one giving condolences, and that the one enduring this tragedy was some one else!

He would repeatedly say,"To Allah we belong and to Him we return. It belongs to Allah, whatever

He takes or gives.

Everything has an appointed time with Allah. "

I know someone who when ever I see him he is happy. Yet, if you were to consider his situation, you would find that he has a very humble occupation, he lives in very small rented accommodation, his car is very old and he has many children. Despite this, he is always smiling and loving. He loves his life. 
That's right! Do not kill your self with grief and do not complain frequently until people become tired of you, like a person whose son is disabled, so whenever he sees you he keeps you busy with his complaints, "My son is ill.... I feel for him... poor son of mine..."

You will soon find your self fed up of him and feel like screaming, Enough, dear brother! Enough! l get your point!" Or imagine a woman frequently saying to her husband, Our house is old the car is about to break down my clothes are out of fashion What is the benefit in complaining? It only increases the suffering. You spend your entire life,A poor man, moaning and grieving.

Your remain with your handstand, complaining, Time is If you do not carry the burdens yourself, who will?


He replied,"My son is ill. He has an injured liver, and a few days ago he also contracted blood poisoning.Also, just yesterday I was shocked to hear that the poisoning has now reached the brain.

I said, There is no might or strength except by Allah! Have patience! I pray to Allah that He cures him. And if Allah were to decree anything for him (i. e.  death), I ask Allah to make him your intercessor on the Day of Resurrection.

He replied, Intercessor? Dear Shaykh, my son is not that young

He lowered his head and said,"Dear Shaykh, he has no brothers.I have not been blessed with any more children, and he has been afflicted with this illness as you can see. "

He said, "Yes.His eldest son went to a wedding party with the entire family in a near by city, whilst he remained behind in Madinah due to his commitments at the university.On the way back they were involved in a terrible road accident in which they died all eleven of them! buried them with his own hands, all eleven of them. 

This is the peak of intelligence, for if he did not behave in this manner, he would have died of grief.

Live your life with what you have available, and you will always be happy.

Tuesday, December 15, 2015

Ibn Qayyim AI-Jawziyyah (691-751 AH.)

Through patience and poverty one attains leadership in religion.The seeker of Truth needs that will inspire him and push him upward and (religious) knowledge that will lead him and guide him."

hese words of  Ibn Qayyim AI- Jawziyyah sum up the personality of this great man, Muhammad ibn Abi Bakr, who is better known as Ibn Qayyim AI- Jawziyyah or Ibn AI-Qayyim, for short. He was born in 691 A.H.
He began his long journey on the road of learning early in his life, moving from one teacher to another to quench his thirst for knowledge. At the age of 21 (in 712 A.H.) Ibn AI-Qayyim met his teacher Ibn Taymiyyah another great hero of Islam and a revivalist of the faith. Their companionship lasted to the end of the teacher's life, Ibn AI-Qayyim kept close company to Ibn Taymiyyah with whom he suffered the pains of prison and flogging many a time.
Apparently, it was from Ibn Taymiyyah that he learn many special qualities such as frankness and courage, indefiance of the falsehood of others, including those in authority. For to both truth had to be said regardless of the consequences. But unlike his teacher, or Ibn AI-Qayyim was less fierce in his attacks (in words or action). The 8th century' Hijra witnessed a state of ignorance and feuds in the Muslim community. Muslims were fighting each other and each trying to impose his authority in everything including religious opinion and scholarship which suffered from stagnation. For the majority of religious scholars acted more like 'recorders' of knowledge rather than true scholars and teachers. To them their teachers were the main. If not the sale, source of knowledge, and the schools of thought they blindly imitated were the only acceptable ways.

Like his teacher Ibn Taymiyyah, Ibn AI-Qayyim spent his life in attempting to correct the wrong course the community was following. He fought the exaggerated reverence for the tombs of the pious despite the strong resistance he met with for the masses. He tried to show the errors committed by the misled sects and their blind followers.
For he considered that the disputes and fights among the Muslims of his time were caused by their sectarian attitude and chauvinistic practices, each one considering himself and his sector school of thought the only right one, and claiming that everyone else was on the wrong path.
Ibn AI-Qayyim spent most of his time and great efforts trying to unite the people, pointing out to them the dangers of blind imitation of the predecessors. He explained that  a Muslim should be open-minded; that is, he should accept what is right and good regardless of the teacher as long as what he or she accepts is consistent with the Quran and the Sunnah and the consensus of the scholars and thgeneral spirit of the faith. To him imitation was wrong in the following cases: 1) if it entails violation of Divine teachings, 2) if it represents an act of blind following of people we are not sure of their knowledge. 3) If it is in defiance of truth after finding it.
It was blind imitation that caused stagnation in scholar· ship and differences among people. Some so-called scholars, he pointed out, were not really scholars of Islam but rather simple propagators of others' opinions. To those people the words and views of their teachers or leaders were the only correct way of understanding the faith to the extent that they subjected even the interpretation if the Quran and the Prophetic teachings to the views of their teachers, which they wrongly took for the ultimate criteria.

Ibn AI-Qayyim considered that the sources of religious knowledge were to be taken in the following order:
1) The Our'an, 2) The Sunnah (Prophet Muhammad's teachings) and 3} The teachings of the companions of the Prophet. To these one could add consensus of Muslim scholars and analogy. Bigotry and prejudice were to him the enemies of learning. To propagate his views, Ibn AI-Qayyim wrote scores of books besides direct teaching.
In his own private life Ibn AL-Qayyim was a very pious and devout worshipper who spent most of his time in prayers and recitation of the Our'an. He was, in fact, an ascetic who rejected the unorthodox practices of some sufis (mystics) who claimed that religious teachings had external and internal sides, meaning that religious obligations (such as prayers, fasting during Ramadan etc. etc.) did not apply to them .
As pointed out earlier Ibn AI·Qayyim was a man of courage and frankness to whom truth was the ultimate goal. His open-minded and flexible attitude is reflected in his views on the correct understanding of religious laws (Shairah), and that these should be interpreted in the light of the circumstances of time and place, because Islam is intended and practicable for all mankind at all times. He wrote many books to

Explain this invaluable principle. Many of his views find their application in the legal system of modern nations more than six centuries after his death in 751 A.H.

Monday, November 2, 2015

Only pass comment on what is good

Some people are over-zealously in making observations and passing comments.  They do not seem to ever stop praising or being complimentary.  However, as the old saying goes, "When something transgresses the limits, it becomes its opposite", or whoever hurries for something before its due time, is often punished by being deprived thereof.

Do praise things that are beautiful and charming things over which a person feels happy when they are noticed, where he expects admiration and is moved upon hearing words of praise. As for things that people usually feel embarrassed about, or feel mortified upon noticing, then close your eyes to those. Dear brother, he did not ask you for your advice. You are not a professional decorator whose advice should be sought. When the guest finished eating, he said, "Praise be to Allah who fed us, quenched our thirst and made us content with what He has given us. 'For example: - You enter your friend's house and notice that the chairs are very old.  Be careful that you do not become an irritating person who cannot cease to offer his unwanted advice. Be careful and do not let your tongue slip by saying: "Why don't you buy new chairs? Half of the chandelier is not functional.  Why don't you buy a new one? The paint on your wall is peeling! Why don't you paint the wall?"

Remain silent. Perhaps he is not able to change the decoration.
Perhaps he is financially restricted, and so on. None is more awkward than a man who embarrasses people by noticing things that humiliate him, and then rouses the topic and begins to pass comments. Similarly, if his garments were old, or his car AC was not working, then either speak well, or remain silent. They say that a man once visited his friend.  His friend, being the host, gave him bread to eat with oil. The guest then said, "If only there was thyme with the bread!" The host then went to his family and asked for some thyme, but found out that they had none.  He then went out to buy some, but he did not have enough money. The shop keeper refused to sell it to him on credit.  Thus, he came back home, took his utensil with which he made ablution and gave it to the shop keeper as a deposit, so that in case he was not able to pay for the thyme, the shop keeper could always sell the utensil to recover his money.  He then took the thyme and returned to the guest and gave it to him.

The host, upon hearing this, sighed in pain and said, "If Allah really had made you content with what He has given you, and then my ablution utensil would not have been given as a security!" Similarly, if you were to visit a patient, do not say to him, "Oh! Your face has gone yellow! Your eyes seem to be wandering! Your skin is dry!" How strange! Are you! His doctor? Speak well, or remain silent.It is said that a man once visited a patient and sat next to him for a while.  He then asked him as to what was ailing him. The patient told him what is wrong with him, and that his illness was serious. The visitors, upon hearing this, screamed and said: "Oh no! So and so, a friend of mine had the same illness and he died because of it! My brother's friend also caught this disease, and he remained bed ridden until he died! My brother in law's neighbor also caught this disease and died:' All the while, the patient listening to this was about to explode! Formerly, when the visitor finished what he had to say and decided to leave, he turned to the patient and said, "By the way, do you advise me with anything?" The patient said, "Yes! When you finally leave, do not bother ever coming back to me!" If you visit a patient, then do not mention death to him. It is also said that once an old woman's friend, who was another old woman, fell ill.  The old woman would ask her sons, one by one, to take her to her ill friend for a visit, but they would continue to make excuses, until one of the sons finally agreed to take her. So he took her in his car. When they arrived at the house, the old woman got out of the car while the son waited. 

The old woman then visited her friend to find that she was completely be set by her illness. She greeted her and prayed for her.
When she began to leave, she walked for a while in the lobby with her friend's weeping daughters, and said, innocently, "Unfortunately, I can’t come to you whenever I want. Your mother severely ill and it seems that she will die.” So let me say to you now ‘May Allah grants you all an appropriate patience to her death. ’Hence, be careful, O intelligent person! Only pass comment on things that are a source of joy, and not depressing.

A problemIf you were ever forced to comment on something bad, such as dirt on a garment, or a bad odor, then do so tactfully. Be clever and kind while doing so.

Thursday, October 29, 2015

The Red Lines

It's about one of my students was very well read and always keen to form relationships with others. However, he was also very unpleasant.

He came to me one day and said, "Dear teacher, my colleagues never like me. They cannot bear my sense of humour:'

I said to myself, "I cannot bear you when you are silent, so how could I when you speak? Moreover, how terrible are you when you try to be lighthearted and joke?"

I asked him, "Why are they unable to bear your jokes? Give me an example of a joke of yours. "

He said, "Once, one of them sneezed, so I said, 'May Allah curse you..... and remained silent....' When he became angry I completed my sentence, '..... lblis! And may Allah have mercy on you, 0 son of and so!"'

How unpleasant this joke was, I thought.

Poor man, he thought he was being pleasant and lighthearted by making such jokes!

No matter how much people tolerate your humour and wit, there are always redlines that they would never like you to cross, especially in front of others.  However, some people do not give any consideration to this and often transgress others' sensitivities. For instance, some people would take your mobile phone and start phoning whoever they like. Others may use it to send text messages to people whom you do not wish to have your number. One of them may drive your car without your permission, or embarrass you by persistently asking for it until you give in unwillingly. You may find a group of students living in a flat and one of them wakes up to go to the university, he finds that so and so has already left with his coat, and so and so has left with his shoes!

Examples of crossing this red line includes finding some people embarrassing their friends by their unpleasant sense of humour or by asking awkward questions in public.  A person, no matter how much he loves you, will always remain a human being who will be happy at times and angry at others.

When the Prophet Sal’lallah ho’wsalam was on his way back to Madinah from Tabuk, there came to him in that same month 'Urwah bin Mas'ud al Thaqafi.  He was a well respected leader and of a noble status am6ng his tribe of Thaqaf.  He met with the Prophet Sal’lallah ho’wsalam before he reached Madinah and embraced Islam.  He suggested to the Pro het that he should go back to his people and call them to Islam. The Prophet Sal’lallah ho’wsalam feared for his wellbeing and said, "They will fight you:' The Prophet Sal’lallah ho’wsalam knew that the Thaqaf tribe was zealously averse to Islam and extremely stern in their dealings, even with their leaders.

'Urwah replied, "0 Messenger of Allah, 1 am more beloved to them than their virgin daughters. " He was, indeed very much beloved and obeyed by his people.  He went to his people to call them to Islam, hoping that they would not disobey him due to his noble status amongst them.

Upon reaching his people's dwellings, he . climbed up an elevated place and called out to them until they all gathered.  He called them to Islam and openly declared that he was a Muslim.  He began to repeat, "I bear witness that there is no one worthy of worship except Allah, and I bear witness that Muhammad is the Messenger of Allah. "

When the people heard this from him, they screamed and became angry about being called to abandon their gods.  They shot at him with arrows from all directions until he fell down.  Thereupon his nephews came to him as he wa breathing his last and said, "0 'Urwah! What do you say regarding the spilling of your blood?" Meaning; shall we avenge your blood by killing those who killed you?

He replied, "This is an honour Allah has bestowed unto me.  This is my martyrdom which Allah has brought to me.  My case is like the that of the martyrs who were killed in the company of the Messenger of Allah So do not kill anyone fore.  and do not avenge my blood from anyone. "

It is said that when this news reached the Prophet Sal’lallah ho’wsalam he said regarding him, "He was among his people like Yaseen among his people:'

Take notice! People have feelings.  No matter how close you get to them, do not be bold with them in your humour or dealings.  Avoid the red line.  Do not hurt them, no matter how high they hold you in regard, even if they be like your brothers or sons.

For this reason, the Prophet Sal’lallah ho’wsalam drew our attention to this and forbade us from frightening a believer. One day the Prophet Sal’lallah ho’wsalam was on a journey with his companions. Each one of the Companions had with him his belongings including weapons, sleeping
mats and food. They stopped over at a place and a man amongst them fell asleep.  His friend turned to a rope he had and took it jokingly. When the man woke up and found the rope missing from his belongings, he was terrified and began looking for it. Thereupon the Prophet Sal’lallah ho’wsalam said,"It is not allowed for a Muslim to frighten another Muslim:' (Abu Dawud)

On another occasion, when the Companions were travelling with the Prophet Sal’lallah ho’wsalam a man was overcome by slumber whilst mounted on his ride.  His friend took advantage of his negligence and took out an arrow from his quiver.  The man realised that someone was playing with his weapons, so he became terrified, frightened and alert.  Thereupon the Prophet Sal’lallah ho’wsalam said,"It is not allowed for a Muslims to frighten another Muslim. " (alTabarani and 0thers, reportedby reliable narrators).
'Similar is the case with someone who jokes with you thinking that you will be happy, whereas in reality, he only harms you, or even worse, fills your heart with fright and anxiety.  For instance, he notices that you have just parked your car outside a grocery with the engine running, so he comes and drives off in your car; causing you to.  think that your car has been stolen obviously as a joke.  The one on the receiving end of such jokes may respond courteously and may even laugh at the joke, but the fact remains that the joke was still cruel.

A point of view: Whatever goes beyond its limits turns into its opposite. How often jokes turn into arguments!. 

Thursday, October 22, 2015

Life Insurance is Haram

Why conventional Life Insurance is Haram

Objections raised on Conventional Life Insurance
Apart from the commonly held view among Muslims that life insurance is not permissible in Islam on the grounds that it reflects disbelief that God has decreed the moment of one’s death, or distrust in God’s providence, some Islamic scholars and many Muslims take a strong view that life insurance is totally prohibited in Islam because of the way life insurance is operated in the conventional system. Conventional insurance contains elements that are not in conformity with the principles of Shari’ah:
Riba: Interest
·         A life insurance policy under the conventional system contains elements of riba where premium income is invested in interest-bearing assets and securities.
·         An element of interest also exists in conventional life insurance products – as the insured, on his death, is entitled to get much more than he has paid
·         Insurance funds invested in financial instruments such as bonds and stocks contain an element of riba. Takaful contributions paid by participants/policyholders under a Takaful scheme are operated on the basis of mudarabah (profit-and-loss sharing) free from elements of riba.

Quran - Allah is All Merciful
Dua - Guidance and Piety

Maysir: Gambling
·         The insured contributes a small amount of premium in the expectation of gaining a large sum
·         The insured loses the money paid for the premium when the insured event does not occur
·         The insurance company will be in deficit if claims are higher than the premiums paid when a life insurance policyholder dies after only paying part of the premium his dependents receive a certain some of money which the policyholder has not been informed of and has no knowledge as to how and from where it has been derived.
·         The idea of a conventionally designed life insurance policy is that if the assured dies at any time before the maturity of the policy, the nominee(s) is entitled to recover from the insurer the whole amount agreed in the policy. While if the assured is alive at the expiry of a permanent life policy period, the insured is also entitled to the whole amount agreed in the policy, plus the interest, dividends and bonus, subject to the company’s policy. On the contrary, the paradigm of a Takaful model of life insurance is that if the assured dies at any time before the policy matures, the beneficiary(s) is entitled to recover from the insurance company the whole amount of paid premiums, the bonus and dividends according to the company’s policy and a share of the profits made on the paid premiums, plus a donation from the company’s charitable fund according to the financial status of the beneficiary(s) (i.e. if the beneficiary(s) is financially in good condition the amount will be less, but if the beneficiary(s) is financially weak and unstable the amount could be greater). Such a transaction is considered as co-operation towards the welfare of the helpless people in society, and it is thus in line with the ruling in The Qur’an. “…Help ye one another in righteousness and piety...” [5:2]
·         However in the case that the assured is still alive upon the expiry of the policy period, the assured is entitled to recover from the company the whole amount of the paid premiums, a share of the profit made on the paid premiums according to the principle of mudarabah bonus and dividends according to the Takaful company’s policy.

Gharar: “Uncertainty”
·         The insurance contract contains excess uncertainty whereby a person pays a cash amount for payment of a claim against the occurrence of a future event when it is not known whether the event will actually take place and the time it will occur is also not known. Any form of contract which is characterized by the domination of one party at the expense and unjust loss to the other is classified as Gharar. When a claim is not made the insurance company may acquire all the profits whilst the participant may not obtain any profit whatsoever. The loss of premiums on cancellation of a life insurance policy by the policyholder, or the "double standard" condition of charging a customary short period in general insurance, whilst only a proportional refund is made if the insurance company terminates the cover is also considered as unjust.
·         In the operation of a life insurance policy under the conventional system, the payments for the agents are to be paid out of the insured’s paid premiums.
·         Whereas under the Islamic model of a life insurance policy the agents work for the company and thus they should be paid by the company itself. This means, the payment for the agents could include a share of the profits made on the paid premiums, plus dividends and bonus according to the company’s policy.
Insurable interest
·         Everyone has unlimited insurable interest in their own life and, theoretically is entitled to effect a policy for any sum assured. In practice, the cost of the policy often limits a person’s ability to insure his or her own life; a person who is married also has interest in the life of his or her own spouse. Certain people can insure the life of others with whom they bear a relationship, recognized in law, to the extent of a possible loss. Accordingly, in a business partnership the partners can insure each other’s lives, as they stand to lose on the death of one of them. In the same way a creditor stands to lose money if an unsecured debtor dies before repaying the loan, and therefore has insurable interest to the extent of the unsecured loan plus interest.
·         In a conventional system of life insurance, the nominee(s) is an absolute beneficiary(s). Suffian J., in Re Man bin Mihat by virtue of Section 23(1) of The Malaysian Civil Law Act 1956, decided that the nominee inter alia in a life insurance policy is an absolute beneficiary who takes absolutely and exclusively the benefits of the policy. In contrast, the nominee(s) in a life policy under the Takaful model is not an absolute beneficiary(s) but a mere trustee, who is in a position to receive the benefits of the policy on behalf of the insured’s heirs and distribute it among them according to the principles of mirath (inheritance) and wasiyah (bequest). In Karim V. Hanifa, The High Court of Karachi ruled that the nominee(s) in a life insurance policy is nothing more than an agent. The National Council of Muslim Religious Affairs in Malaysia, also issued a Fatwa to the same effect in 1979, that the nominee(s) in a life insurance is a mere trustee who is supposed to receive the benefit of the policy and distribute it among the heirs of the assured, according to the principles of mirath and wasiyah.
·         In other words, the insurable interest, under the conventional system it is vested in the policyholder solely, should he/she be alive upon the expiry of the policy period. However, in the event of the death of the insured within the policy period, the insurable interest will be paid to the husband or wife, parents or children, benefactor or other nominated beneficiary or trustee, company and director, partners, mortgagor and mortgagee, according to the policy. In contrast, under the Islamic model, insurable interest is vested in the assured or in the insured’s heirs, according to the principles of mirath and wasiayah.
Rational Outlook
·         Having a life insurance policy does not mean just insuring one’s life but is a fair financial transaction for the benefit of certain helpless people in society. The rationale behind having life insurance may be considered as follows:
·         It is one of the means used to provide a material safeguard for the offspring of the deceased and thus in line with the saying of Prophet Muhammad: “It is better for you to leave your off-spring wealthy than to leave them poor, asking others for help” (narrated by Sayid bin Abi- Waqqas, Companion of Prophet Muhammad)
·         It provides future material security for widows and other dependents of the deceased (assured). Prophet Muhammad in fact encouraged the provision of security for widows and poor persons, as recorded in one of his Traditions: “One who looks after and works for a widow and for a poor person (dependent), is like a warrior fighting for the cause of Allah, or like a person who fasts during the day and prays throughout the night’ (narrated by Safawan bin Salia, Companion of Prophet Muhammad)
·         It ensures that certain persons (widows, orphans, etc) will have protection from unexpected future material difficulties, which otherwise may result in hardship for those people. Prophet Muhammad advised the people to protect one another from any form of hardship and difficulties when he said to them: “Whoever removes worldly grief from a believer, Allah (SWT) will remove from him one of the grief’s of the Day of Judgment. Whoever alleviates the problems of a needy person Allah will alleviate his problems in this world and the next “ (narrated by Abu Huraira, Companion of Prophet Muhammad)
·         It ensures co-operation and solidarity among participants. It is also a positive initiative by the assured towards a positive material status for widows, offspring, etc. Hence, such co-operation towards a positive goal is, in fact, ruled in The Qur’an.
·         “Help ye one another in righteousness and piety’’ [5:2]
·         It is like taking an initiative towards ensuring a self-reliant society and alleviating hardships. It is in line with the Qur’an ruling. “Allah intends easy life for all of you, while He does not want you to be in difficulties...” [2:185]