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Are protection plans Insurance plans? Is it haram to sell them?

682 viewsGeneral (Misc)halal haram protection plans

I have a question regarding a job I got. Right now I am having training and I came to know exactly what is the job about.
Its work from home call center job. I will be taking in bound calls. Company name is reliance.

My duties are as follows

People call with different issues regarding their heating cooking equipments or regarding their plumbing issue and I have to book the technician appointment. Besides this I also have to sell the companies plan on customer heating and cooling equipments. Heating cooling plans are on customer owned equipments that customer have to pay every month certain amount that if their equipments not working or any other issues they will be covered. They will call and technicians will go out and fixed their issue. Similarly the company has plumbing plan that if customer purchase then they will be covered for plumbing issues

My question is

  • Are these plans insurance?
  • And is it haram to sell these plans

Please let me know soon

As my training will finished this week and I have to join from next week

Bismillahi Ta’ala

Walaikum Assalam Warahmatullah,

After reviewing the website, we take note that your job will be working under the Protection Plans of the company. Protection plans which outwardly may seem like insurance plans, but in reality offer a service plan (offering repairs and service on a flat monthly rate) are treated under ijarah (employment) according to contemporary fuqahā’. (a detail explanation for this here could be counterproductive, hence it is being omitted) . This offers a scope for engaging in them and selling those plans as well. However, a key condition for this permissibility is that the insured/client does not directly receive any monetary compensation. Instead, the insurer undertakes the repairs directly.

If the structure of the business you are starting your work at, aligns with this model, then there is scope for permissibility. Consequently, working within such a framework and selling these plans would be acceptable.

However, if the business structure differs from the above model, please provide further details, and we will assess its permissibility accordingly.

Wallahu A’lam

And Allah Ta’āla Knows Best
Maulana Israar Ahmed

Checked and Approved by

Mufti Faisal al-Mahmudi

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