If the car insurance is mandatory by law, is it permissible to submit a claim for the car repairs on the insurance? – Ibn Baaz

Q1: In this country, car insurance is mandatory by law. If a one has a car accident, is it permissible to submit a claim for the car repairs on the insurance?

A: If it is compulsory and a person has no choice, they should not take more than what they paid because this is a form of gambling.

For example, if a person pays ten thousands to an insurance company, they should only take ten thousands only and if they pay four thousands, they should take four thousands only; for it is not permissible to accept any profit. If one receives an additional amount it should given it in charity.

Fatwas of Ibn Baz – http://www.alifta.com

Note from AbdurRahman.Org : If the car insurance is mandated by Law, then it is not permissible to opt for Comprehensive Insurance or Full coverage  but one should opt for Third Party Insurance / Basic Coverage.

Ruling about life and property insurance : Ibn Baz

 Question:

What is the ruling on Insurance, wether it be life insurance or property insurance?

Answer:

Insuring one’s life and property is forbidden; it is not permissible due to the fact that Al-Gharar (Uncertainty, Risk or Speculation) and usury are involved therein. And Allah – the Almighty the All-Powerful – has forbidden all types of dealings that involver usury and dealings in which there is Al-Gharar (Uncertainty, Risk or Speculation), as a mercy for the (muslim) community and a protection for them for what is harmful to them. Allah – Most Glorified, Most High says:

“where as Allah has permitted trading and forbidden riba” (usury). Al-Baqarah 2:275

And it has been authentically reported from the Messenger of Allah (sallAllaahu ‘alayhi wa sallam) that he forbade selling AL-Gharar. And Allah is the granter of success.

Shaykh `Abdul-`Azeez Bin Baz
Fatawa Islamiyah, volume 5 / page 19

Ruling on medical insurance made by institutions and companies on the employees and their families – alifta

Source : alifta.com – Issued by the Permanent Committee

Q: Some private companies and businesses offer medical insurance to their employees and their families. To provide this service, they make an agreement with some private hospitals. This agreement is as follows:

1- The company pays the hospital a fixed monthly amount of 100 Riyals for each employee, regardless of the number of times they visit the hospital to have treatment.

2- The hospital is responsible to treat the employees, giving them the necessary medications and performing surgery for them when necessary. It is important to mention that the hospital spends more than 100 Riyals some months on treating an employee, especially when the person has an operation.

At other times, an employee may not visit the hospital at all and thus, does not benefit from the 100 Riyals or he may benefit only from a small amount. The question now is: First, is this type of medical insurance permissible or does it involve uncertainty and deception?

Second, does this kind of insurance fall under the permissible Ji’alah (payment for a permanent job, not a fief) as some researchers have said (i.e., Majallat Al-Buhuth Al-Fiqhiyyah Al-Mu`asirah, “Contemporary Jurisprudence Research Journal”, issue no. 31)? Third, what are the characteristics of a lawful cooperative medical insurance?

A: The transaction mentioned in the question falls under the category of prohibited commercial insurance, which involves uncertainty, deception and devouring people’s money falsely. The permissible cooperative medical insurance is to establish a charity fund that is paid to help the needy and sick people without the donor expecting any financial benefit from it. Giving the money to the fund should only aim at helping the needy, and hoping for the Reward of Allah (Exalted be He). May Allah grant us success! May peace and blessings be upon our Prophet Muhammad, his family, and Companions!

Permanent Committee for Scholarly Research and Ifta’
[Issued by the Permanent Committee, Fatwa no. 19399]