Fatawa Answer

Question: Insurance

ID: 1832

Name: Dealings and Transactions

Question

Is optional insurance coverages like comprehensive coverage rather than just liability insurance required by law for a car, optional home insurance or flood insurance are allowed in Islam?

Answer

بسم اللہ الرحمٰن الرحیم

الجواب ومنہ الصواب

In essence, insurance is forbidden because it involves interest and gambling.But insurance which is mandatory by the government is allowed under compulsion.However, as much insurance is necessary to avoid litigation, or a legal action is allowed.

Therefore, insurance which:

a. is not legally necessary,

b. or a comprehensive insurance coverage purchased solely for convenience and for personal benefits,

is not permissible according to Shariah rules.

(مستفاد از ھکذا فی فتاویٰ عثمانی کتاب الربا والقمار والثامین :۳؍۳۱۴)

فقط واللہ اعلم بالصواب

Answered On: Thursday, Oct 26, 2023 | N/A

Answered By: Mufti Mohammed Ataur Rahman Sajid

Checked By: Mufti Mohammed Navalur Rahman