Anees
1
I live and work in Dubai, UAE.
In the UAE, there is a mandatory by law to have Loss-of-Job Insurance, known as ILOE. This insurance pays employee 60% of his salary if an employee is terminated (not resigned himself).
In November 2024, I lost my job because my company was moving to another country and closing its Dubai office. Just like every employee in UAE have ILOE insurance I also have it but its not mandatory to do a claim. However, I chose to submit a claim after my termination.
To process the claim, I incurred expenses of approximately AED 400 for arranging and submitting the required documents. Please note that the insurance provider, Dubai Insurance Company P.J.S.C., is not Shariah-compliant.
I have now received three installments from the insurance payout, amounting to AED 4,889 each, totaling AED 14,667.
I have the following questions regarding the permissibility and usage of this amount in accordance with Islamic Shariah principles:
1) Is this amount halal? Please note that the insurance provider, Dubai Insurance Company P.J.S.C., is a local insurance company but not Shariah-compliant.
2) Can I use this amount to pay my father’s loans? My father is elderly (over 60 years old, MashaAllah) and is no longer working. I cannot pay his loans from my income becasue his loan amount is huge.
3) Can I use this amount to purchase mandatory insurances in Dubai? For example, can I use it to pay for medical and car insurance, as these are mandatory in Dubai?
I kindly request your guidance to address these queries. I will await your reply to help me resolve this matter.
JAZAKALLAH KHER.
