The Impact of COVID-19 ... Date Added: 10-01-2023

In order not to Regret the ... Date Added: 09-01-2023

First Master`s Dissertation ... Date Added: 02-01-2023

Generalizing Judgments is ... Date Added: 27-12-2022

The Islamic Economy and its ... Date Added: 29-01-2023

The Role of the Media in ... Date Added: 24-01-2023

Family`s Role in Countering ... Date Added: 16-01-2023

Threats and Challenges ... Date Added: 12-01-2023


Subject : Ruling on Taking Reinsurance Commissions

Fatwa Number : 3043

Date : 23-02-2015

Classified : Current Financial Issues

Fatwa Type : Search Fatawaa

Question :

What is the ruling when Islamic insurance companies take reinsurance commissions from non-Islamic reinsurance companies or other companies in the form of shares, and deposit them in the fund of their shareholders?

The Answer :

All perfect praise be to Allah, The Lord of The Worlds, and may His blessings and peace be upon our Prophet Mohammad and upon all his family and companions.

The Iftaa` Council of the Hashemite Kingdom of Jordan has already pointed out, in Resolution (46)/2001, that reinsuring with non-Islamic reinsurance companies is among the essential needs of this age. Therefore, the Council is of the view that: "It is permissible to deal with non-Islamic reinsurance companies as long as there aren`t Islamic ones, and calls for founding Islamic reinsurance companies as soon as possible.

Should an Islamic Insurance company reinsure with an Islamic reinsurance company, it is permissible for the former to take the reinsurance commissions. But, if it reinsured with a non-Islamic reinsurance company, it isn`t permissible to take those commissions. However, it is permissible for the Islamic company to ask the non-Islamic reinsurance company to reduce the subscription amount, as viewed by  the Accounting and Auditing Organization for Islamic Financial Institutions(Criterion (41), Article (7/2)): "It isn`t permissible for the Islamic insurance company to take the reinsurance commissions, but it has the right to ask the non-Islamic reinsurance company to reduce the subscription collected by it."

In case the non-Islamic reinsurance company refused reducing the subscription amount, then the Islamic insurance company is allowed to take the reinsurance commissions provided that they are given to charities and used for the common good. And Allah knows best.




Name *

E. mail Address *


Comment Title *

Comment *


Warning: this window is not dedicated to receive religious questions, but to comment on topics published for the benefit of the site administrators—and not for publication. We are pleased to receive religious questions in the section "Send Your Question". So we apologize to readers for not answering any questions through this window of "Comments" for the sake of work organization. Thank you.