Back to search

Is working in the field of compulsory third-party insurance permissible or forbidden, and if it is forbidden, is it permissible to sell land purchased with its profits to start a new project, and how can these funds be purified?

1 min readAlso available in العربية

Working in insurance companies, its ruling varies depending on the type of insurance. Cooperative insurance is permissible, while commercial insurance is not permissible.

If the earnings are from cooperative insurance, they are lawful. If they are from commercial insurance, they are unlawful.

If you worked knowing it was prohibited, you must dispose of the acquired money by spending it on the welfare of Muslims. You are not required to dispose of what was bought or built with this money; rather, the unlawful money remains your responsibility to spend on the welfare of Muslims.

However, if you worked unaware of the prohibition, some scholars have explicitly stated the permissibility of benefiting from this money, citing the verse: "So whoever receives an admonition from his Lord and desists, then may retain what has already passed; and his affair is [now] with Allah" (Al-Baqarah: 275).

Summarized from the full answer at Ftawy · reviewed Sep 2, 2026

Read the full answer on Ftawy