Karama Jinaza Cover is not Haraam
Updated: Mar 7, 2019
We have had many interactions since our launch, from people being super amped to a very concerning point of Karama Jinaza Cover #KJC being #Haraam. So before we tackle the question on “why us”, I think it’s important to clarify the “#Halaal/Haraam” concern....
#Funeral/Janaza Cover can be a highly complicated matter that requires a good amount of scholarly research to fully understand both the Islamic requirement as well as the way Funeral Cover is designed and delivered to the consumer in today's world.
Many often use the following scripture/hadith out of context when looking at funeral cover and call it Riba Alfidal and Riba Alnisaia.
حَدَّثَنَا أَبُو بَكْرِ بْنُ أَبِي شَيْبَةَ، حَدَّثَنَا وَكِيعٌ، حَدَّثَنَا إِسْمَاعِيلُ بْنُ مُسْلِمٍ الْعَبْدِيُّ، حَدَّثَنَا أَبُو الْمُتَوَكِّلِ النَّاجِيُّ، عَنْ أَبِي سَعِيدٍ الْخُدْرِيِّ، قَالَ قَالَ رَسُولُ اللَّهِ صلى الله عليه وسلم " الذَّهَبُ بِالذَّهَبِ وَالْفِضَّةُ بِالْفِضَّةِ وَالْبُرُّ بِالْبُرِّ وَالشَّعِيرُ بِالشَّعِيرِ وَالتَّمْرُ بِالتَّمْرِ وَالْمِلْحُ بِالْمِلْحِ
مِثْلاً بِمِثْلٍ يَدًا بِيَدٍ فَمَنْ زَادَ أَوِ اسْتَزَادَ فَقَدْ أَرْبَى الآخِذُ وَالْمُعْطِي فِيهِ سَوَاءٌ " .
Gold is to be paid for by gold, silver by silver, wheat by wheat, barley by barley, dates by dates, salt by salt, like by like, payment being made hand to hand. He who made an addition to it, or asked for an addition, in fact dealt in usury. The receiver and the giver are equally guilty. [Sahih Muslim 1584 e]. However, this only reflects the fact that you cannot sell or trade something for something more. Again, Funeral Cover is not defined by this concept.
KJC(Islamic Funeral Cover) is NOT an “Algharar” sale
واتفق العلماء على أن الغرر الكثير لا يجوز ، وأن القليل يجوز ويتسامح فيه
The scholars agreed that Algharar that is a lot is #forbidden, however, if the amount is low it is allowed and forgiven. So when unpacking the definition, most scholars argue that #Funeral Cover is buying into something with no guarantee's or something that is not known.
Yet we know that every living entity will die, as #Allah says “Every soul will taste #death, and you will only be given your [full] compensation on the Day of Resurrection. So he who is drawn away from the Fire and admitted to Paradise has attained [his desire]. And what is the life of this world except the enjoyment of delusion.” As proven by Allah, we all eventually #die. Which means your family will eventually collect the promised amount of money. Making this a NON Gharar sale, not so?
Here are several examples giving by many #Mufasreen:
Selling #fish in the sea - aka. I will sell you tomorrow's fish catches for x Rands. Here you don't know how many you will fish. One time you can fish plenty while sometime nothing. Same for selling birds in the sky. [Shafai]
Selling the fruits before they come - The prophet once said: What will happen if Allah decides to not bring the fruit forth, will you then eat his money?
Basically the idea here is that you are selling something without knowing what the outcome of the product would be (there could be a final item or not). Funeral Cover is more like a program, not a product so the whole thing doesn't even apply. In the same sense Karama Jinaza Cover cannot be gambling, because you’re not getting any money, we pay for everything and you know exactly what you’re getting!
Karama Jinaza Cover is NOT an #Investment
Some Muslim’s see Karama Jinaza Cover as a form of investment (thinking you put little #money in and get more lately), which is the furthest thing from the truth. Karama Jinaza Cover is a form of security, a financial security that will make you more secure in life if an unplanned event such as a Jinaza should happen. It is a system in which you give money, in form of a #premium, regularly to an #organisation or a #company in an agreement that your financial needs will be taken care of in times of urgency and mishaps that may happen to you and you may not be able to cope with it on your own. So its kind of a great #financial help provided for a fee. That's all it is - if anything, its protecting you and your family from a great sin being debt.
Last point is that how are we sure that our underwriter doesn't spend premiums with banks, #casino’s, #alcohol, #Zina etc. My answer is this, firstly it’s not my business even if it is, because when all Muslim’s buy from their #favourite mass retailer, can they guarantee that their money did not fund the mass murder of the #Ummah in the Middle East, can you stop #PnP or Woolies from using your money in Haraam investments? However, Karama Jinaza Cover can guarantee that all our premiums and profits will be invested in Halaal and Shariah compliant funds.