Darul Iftaa Mahmudiyyah

Is it Permissible to use the Insurance Payout?

· 15 Rajab 1438 AH1 min readFatwa 37941English

Question

As SalamuAlaykum,

My farther has taken out insurance on my car which is not compulsory It covered my car incase of an accident , I recently had such an accident and am want to know if it is permissable to use the insurance payout

Answer

In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

Apart from any insurance (third party) which is a legal requirement, it is not permissible to take out any car insurance policy. These schemes contain elements of interest [Riba], gambling [Qimar] and deception [Gharar].

If you are paid out, you may only use the sum of your premiums and not more than that.[i] The excess amount should be disposed in charity without the intention of reward.[ii]

And Allah Ta’āla Knows Best

Imran Patel

Student Darul Iftaa

Zambia

Checked and Approved by,
Mufti Ebrahim Desai.

References (Arabic / Urdu sources)

[i]

فتاوى عثماني( ٣/ ٥٤٤-٥٤٥) مكتبہ معارف القران

[ii]

وَيَرُدُّونَهَا عَلَى أَرْبَابِهَا إنْ عَرَفُوهُمْ ، وَإِلَّا تَصَدَّقُوا بِهَا لِأَنَّ سَبِيلَ الْكَسْبِ الْخَبِيثِ التَّصَدُّقُ إذَا تَعَذَّرَ الرَّدُّ عَلَى صَاحِبِهِ

رد المحتار )6 – 385 ) ايج ايم سعيد

احسن الفتاوى – (7/16) - ايج ايم سعيد

فتاوى محمودية – (16/381)– دار الافتاء جامعه فاروقية

Answered by
Imran Patel
Checked & approved by
Mufti Ebrahim Desai
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Source: Darul Iftaa Mahmudiyyah — https://askimam.org/public/question_detail/37941
Fatawa SA: https://fatawa.co.za/fatwa/askimam-37941

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