Fatwa ID: 04358

Answered by: Alimah Nasima Umm Hamza

Question

Assalamu Alaikum.

Car insurance (at a minimum level) has been permitted in countries where it is a legal requirement. What is the basis of permissibility?

بِسْمِ اللهِ الرَّحْمنِ الرَّحِيْم

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

Answer:

In countries where car insurance is mandatory, the contemporary jurists, such as Mufti Taqi Usmani have permitted taking the minimum insurance to drive a car (such as third party insurance). It becomes like a type of tax since there is no choice in the matter. ^[1]

From a usooli perspective, the scholars apply qa’idahs (principles) to ascertain the permissibility of taking car insurance in this case. In the case of car insurance, the following principles and their branches are applied:

الَمَشَقَّة تَجلِبُ التَّيسِير

“Hardships brings about ease.” and

الحاجَة تُنَزَّلُ مَنزِلَة الضَّرَر عامَّةً كانَتْ أَو خاصَّةً فِي إِباحةِ المَحظُور

“The need will be made to descend according to the necessity, whether it is general or specific, in permitting the unlawful thing.” ^[2]

Only Allah knows best

Written by Alimah Nasima Umm Hamza

Checked and approved by Mufti Mohammed Tosir Miah

Darul Ifta Birmingham

^[1] https://muftitaqiusmani.com/en/the-insurance-of-cars/

^[2] Izzat Ubayd ad-Du’aas, Al-Qawaid al-Fiqhiyyah Ma’a Sharh al-Moojaz, Qaidahs 27 and 32