|
Muslim desire for certainty clashes with annuity 'gamble'
Annuities are not good news for Muslims. Not only do they involve interest, which is forbidden under Islamic law, they also involve uncertainty.The issue with an annuity is that you are being given a rate, but nobodys sure how long it will be paid for, so it introduces an element of uncertainty, which conflicts with Islamic law, Alun Williams, of the Islamic Bank of Britain, said. This is one of the principles underlying so-called Shariah finance, he said. Contracts should be very clear and certain as to their outcome. An annuity, by most interpretations, would be considered an unclear and uncertain contract, because, if you think about it, its a bit like gambling nobody is sure whether you are going to win or the insurance company is going to win. Ian Oliver, of Norwich Union, the insurer, believes that several religious groups, including Muslims, may have objections to annuities on ethical grounds: Its really anyone who objects to, putting it bluntly, gambling on when you are going to die, and there are a number of groups who fall into that camp. Mr Williams said that many Muslims are unhappy about investing in the sort of pension fund needed to pay eventually for an annuity. Alternatively secured pensions might be of interest to them instead of annuities, but they have objections to pensions before they get to the annuity stage, he said. Posted by: ryuge 2006-07-15 |
| http://www.rantburg.com/poparticle.php?ID=159343 |