Getting rid of insurance company shares

13-12-2016 | IslamWeb

Question:

Assalaamu alaykum. When I first came to the States, I did not know about insurance that it was haram. In any case, I quit it, but while I had it, the company became public and gave me some shares, which I still have. Can I sell them and use the money to make Hajj with it? May Allaah reward you.

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Answer:

All perfect praise be to Allah, The Lord of the worlds. I testify that there is none worthy of worship except Allah and that Muhammad is His slave and Messenger. 

You can sell the shares which the company gave you and which are registered in your name and take the exact amount of the price with which you bought the insurance if you have not already taken it from the company. However, you should get rid of whatever amount that exceeds that price; this is based on the resolution of the Permanent Committee of Iftaa, which reads, “It is not permissible to buy shares in banks or companies that deal with Riba (interest). If the share holder wants to get rid of his Riba shares, then he should sell his shares according to the market price and take his capital money only. He should spend whatever remains in acts of goodness, but it is not permissible for him to take anything from the profit or Riba of his shares...”

Allah knows best.