Fatwa ID: 06315

 

 

Answered by: Alimah Zakiratul Hoque

 

Question:

 

 

Asalaamualaikum ww Mufti sb, I wanted to ask if this answer I read from a layperson on the net is correct. Specifically the last paragraph”(the opinion of Mufti Taqi Usmani is that you are entitled to be reimbursed for the damages in full, regardless of whether the money comes directly from the other party (preferable) or from his insurance company.)” I’ve copied and pasted from there.

 

When dealing with forced vehicle insurance (and to an extent, any form of insurance), there are a few extra considerations, which I will summarise thus:

 

If you are not claiming more money than you have already contributed to your insurance company, then it can be argued that you are not profiting from gambling, rather you are merely recovering your own money which you were forced to pay out. In this case, the opinions of Shuyukh Muhammad Salih al-Munajid and Muhammad ibn Adam al-Kawthari are that there is nothing wrong with accepting money.

 

Any claim amount exceeding the amounts already paid as premiums would be considered unlawful and should be disposed of as mentioned above (e.g. donated to charity). However, my own personal opinion is that any exceeds can be kept aside for paying off future insurance premiums to the same company, as this would be a reasonable method of returning the money to its rightful owners. If circumstances change such that you are no longer paying these insurance premiums, any remaining exceeds can then be disposed of accordingly.

 

However, there may be situations where the other party is clearly at fault, and the claim is paid out by either the offending party or his own insurance company. In this case, the opinion of Mufti Taqi Usmani is that you are entitled to be reimbursed for the damages in full, regardless of whether the money comes directly from the other party (preferable) or from his insurance company. This is completely independent of how much you may (or may not) have contributed to your own insurance company.

 

 

 

In the name of Allah, the Most Gracious, the Most Merciful

 

Answer:

 

Impermissibility of insurance

 

Insurance is considered unlawful because it has elements of chancing (the money is paid but the return is uncertain; the company may never need to pay on your behalf or they may pay more than you contributed), uncertainty, and interest (exchanging money for money).

 

Regarding chancing, Allah says in the Qur’an:

 

“They ask you about intoxicants and gambling. Say, “There is great evil in both, as well as some benefit for people—but the evil outweighs the benefit.” They ask you what they should donate. Say, “Whatever you can spare.” This is how Allah makes His revelations clear to you, so perhaps you may reflect.” (Qur’an, 2:219)

 

 

Allah says regarding interest:

 

“O believers! Do not consume interest, multiplying it many times over. And be mindful of Allah, so you may prosper.” (3:130)

 

 

Vehicle insurance

 

Vehicle insurance is considered permissible because it is a legal requirement within certain countries, and necessities can cause unlawful things to become lawful (Qawaaid Fiqhiyyah, Pg 43). This ruling of permissibility does not apply to all types of insurance, as you alluded to.

 

After discussing the permissibility of vehicle insurance, we can discuss the situations that arise from it.

 

Firstly, if one is paid insurance, it would only be lawful to claim the amount one has contributed – which should be the minimum legal requirement – as only the necessary amount is considered lawful (Qawaaid Fiqhiyyah, Pg 44). Any amount beyond that would be considered interest as it is an exchange of money for money in which one party is gaining and the other is losing. As such, one should not keep any exceeds to pay off future insurance premiums to the same company. Rather, if one is paid in excess, he should dispose of it via charity.

 

 

Secondly, if an individual damages another’s property, he is responsible for reimbursing the victim (Badai Al Sanai, Vol 10, Pg 63). Ideally, the person himself should pay the money. However, if there are legal processes in place and the insurance company pays on his behalf, that is also valid and the reimbursed money would be Halal for the victim, as it is his right.

 

 

يَسْـَٔلُونَكَ عَنِ ٱلْخَمْرِ وَٱلْمَيْسِرِ قُلْ فِيهِمَآ إِثْمٌ كَبِيرٌ وَمَنَـٰفِعُ لِلنَّاسِ وَإِثْمُهُمَآ أَكْبَرُ مِن نَّفْعِهِمَا وَيَسْـَٔلُونَكَ مَاذَا يُنفِقُونَ قُلِ ٱلْعَفْوَ كَذَٰلِكَ يُبَيِّنُ ٱللَّهُ لَكُمُ ٱلْـَٔايَـٰتِ لَعَلَّكُمْ تَتَفَكَّرُونَ

يَـٰٓأَيُّهَا ٱلَّذِينَ ءَامَنُوا۟ لَا تَأْكُلُوا۟ ٱلرِّبَوٰٓا۟ أَضْعَـٰفًا مُّضَـٰعَفَةً وَٱتَّقُوا۟ ٱللَّهَ لَعَلَّكُمْ تُفْلِحُونَ

عَنْ أَبِي سَعِيدٍ الْخُدْرِيِّ رضى الله عنه أَنَّ رَسُولَ اللَّهِ قَالَ‏ لاَ تَبِيعُوا الذَّهَبَ بِالذَّهَبِ إِلاَّ مِثْلاً بِمِثْلٍ، وَلاَ تُشِفُّوا بَعْضَهَا عَلَى بَعْضٍ، وَلاَ تَبِيعُوا الْوَرِقَ بِالْوَرِقِ إِلاَّ مِثْلاً بِمِثْلٍ، وَلاَ تُشِفُّوا بَعْضَهَا عَلَى بَعْضٍ، وَلاَ تَبِيعُوا مِنْهَا غَائِبًا بِنَاجِزٍ

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فلا شك أن الإتلاف سيي لوجوب الضمان عند استجماع شرائط الوجوب لأن اتلاف الشيء إخراجه من ان يكون منتفعا به منفعة مطلوبة منه عادة و هذا اعتداء و اضرار

 

 

 

 

Only Allah knows best.

Written by Alimah Zakiratul Hoque

Checked and approved by Mufti Mohammed Tosir Miah

Darul Ifta Birmingham