Insurance payout from building
Question
Two weeks ago a family member of ours requested that we lend him some money because his geyser had burst ! Because he is staying in a block of flats the insurance covers burst geysers etc. (Please note that he does not have insurance.) The building manager suggested to him to get a plumber to replace it and he will pay the plumber thereafter. The building manager will claim from the insurance and pay him for the cost of the replacement etc! Thereafter he will pay the money to us. Is it permissible for us to accept the money?
Answer
The body corporate deducts a certain amount from the monthly levies (without the owner’s consent) and contributes this amount towards insurance premiums of behalf of the tenants. One is permitted to claim the amount that was unjustly deducted (from levies) and paid towards the monthly premium. Hence, in the queried scenario, the tenant can use up to the amount that was contributed by him/her towards the insurance. Any extra payout from the insurance company must be given out in charity without any intention of reward.
- Answered by
- Mufti Mohammed Desai
Where scholars differ, it’s safer to take the more cautious view.
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Source: Darul Ifta Ibn Masood — https://fataawa.co.za/insurance-payout-from-building/
Fatawa SA: https://fatawa.co.za/fatwa/ibnmasood-30486
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