Major Earning of State Life Insurance is through Interests which it gets from giving loan to government and other government Institutes. But still they do declare it Halal. It’s up to people who are investing in it that they shouldn’t get fooled by the charm of false advertisement and promises.
Here are some investment details on investments of State Life
State Life Insurance Corporation of Pakistan invests its funds in accordance with the provisions contained in Insurance Ordinance 2000, Insurance Rules 2002 and SRO(309) K of 1970 as amended to date by the Government of Pakistan.
- Securities
Definition by State Life: These include instruments issued by Government of Pakistan such as Treasury bills, Pakistan Investment Bonds etc.
What Govt. Securities Really are:
Answer: Interest
There are many types of government securities. Let’s take a look at them and see how they differ.
Treasury bills are short-term securities issued by the federal government. Their maturity periods range from days to 52 weeks. These securities are sold at a discount rate and will be paid at face value, which is how the investors make their money.
Treasury notes are government securities with maturity periods longer than treasury bills. Their maturity periods can be two, three, four, five, seven, and ten years. Interest is paid every six months.
Treasury bonds are long-term investments with a maturity period of 30 years. Interest is paid every six months.
- Approved Govt. Securities
State Life is getting Interests on these as well
These include instruments as Wapda Bonds, Provincial Securities/TFCs etc.
- Loans
State Life is getting Interests on these as well
These include loans in the form of Term finance certificates etc.
Fatawa On Insurance
Praise be to Allah.
- All kinds of commercial insurance are clearly and undoubtedly ribaa (interest/usury). Insurance is the sale of money for money, of a greater or lesser amount, with a delay in one of the payments. It involves riba al-fadl (interest-based transaction) and riba al-nas’ (interest to be charged if payment is delayed beyond the due date), because the insurance companies take people’s money and promise to pay them more or less money when a specific accident against which insurance has been taken out happens. This is riba, and riba is forbidden in the Qur’aan, in many aayaat.
2. All kinds of commercial insurance are based on nothing but gambling which is haraam according to the Qur’aan:
“O you who believe! Intoxicants (all kinds of alcoholic drinks), and gambling, and Al-Ansaab (stone altars for sacrifice to idols etc.) and Al-Azlaam (arrows for seeking luck or decision) are an abomination of Shaytaan’s (Satan’s) handiwork. So avoid (strictly all) that (abomination) in order that you may be successful†(al-Maa’idah 5:90 – interpretation of the meaning).
All kinds of insurance are kinds of playing with chances. They tell you, Pay this much money, then if this happens to you we will give you this much. This is pure gambling. Insisting on differentiating between insurance and gambling is pure stubbornness that is unacceptable to any sound mind. The insurance companies themselves admit that insurance is gambling.
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