Wednesday, September 4, 2013

Insurance: The forgotten sin

بسم الله والحمد لله والصلاة والسلام على رسول الله ، وبعد

Becoming a norm doesn’t make a Haraam thing Halaal; nor does forgetting about its ruling makes it Halaal.

In almost all countries, taking out insurance policies is mandatory, especially when it is related to motor vehicles. Growing up, we learned that is Haraam, but with the passage of time and with a lot of indulgence in it, obscurity has settled in the hearts about its ruling. A lot of people today don’t know or have almost forgotten about its ruling. If a person has an accident, the first thing his friends question him is: “is the car insured?” or they’ll say: “don’t worry; the insurance company will pay for it.” 

How the ruling becomes obscured:

 It is a big deception by Shaitaan. He first introduces an evil in one generation, and when this generation passes away, he misguides the next generation even further till it becomes a norm in that generation and no one considers it Haraam anymore. Similar to what has been mentioned from Ibn `Abbaas رضي الله عنهما in Saheeh al-Bukhaaree, about how idol worshiping began. Shaitaan first made them make idols and images of “godly” men. When the first generation passed away and the purpose of making these images became obscure to the next generation, Shaitaan whispered to them saying that your forefathers used to worship these idols.

Two wrongs don’t make a right:

In the past, the people of Prophet Shu`aib عليه السلام, their lack of faith in Allaah and in the Day of Judgment led them into cheating and injustice in their business dealings. So widespread was this that it was considered the norm in the society and no one would question this. It has now become the norm of our society too where water is added to milk (to gain maximum profits), chemicals in food (to generate profit out of nowhere), small stones/particles in food grains (to increase the weight) etc.

Allaah تعالى says:

{Woe to those that deal in fraud. Those who, when they have to receive by measure from men, demand full measure. And when they have to give by measure or weight to (other) men, give less than what is due. Do they not think that they will be resurrected (for reckoning), On a Great Day? The Day when (all) mankind will stand before the Lord of the Worlds?} [Surah al-Mutaffifeen (83): 1-6]

The ruling on insurance:

Shaikh Muhammad Ibn Saaleh al-`Uthaymeen رحمه الله said:

“And from gambling is insurance: insuring the cars, commodities, or something similar (like machineries, houses etc.). This is because the two parties involved in the contract (the insurer and the insured), their matter is like (a game of chance) where one gains and the other pays for it.

So if you were in a country where it is compulsory (by law) for you to take out an insurance policy; you only get into the contract with them (while keeping in mind) that this contract is incorrect and that you were compelled towards it.

Thereafter, if you are involved in an accident and you are insured for it, you should not take anything from it. This is because this contract is incorrect (and illegal). But if there is no accident, and the insurance company gets away with all the gain, then in this case they have oppressed you and there will be nothing upon you (i.e. you will not be sinning) because you have already disliked it.

In this matter, this is what we see to be as correct:

a. If getting insured is a matter of choice, then it is Haraam (to get into the contract).

b. But if it is forced upon you, then you only get into a dummy contract with them unwillingly.

Thereafter, (in an accident) if the person is reimbursed with more money than he paid for, then he should not take this (excess amount). If they do not give you anything (as there was no accident), then do not request anything from them; because, even if he asks, they won’t give him. Thus, their taking the wealth from this man for insurance will be oppression on their part.”

[التعليق على القواعد والاصول الجامعة (1/147)]


He رحمه الله also said in another place:

“However, it has been mentioned to me that in some countries people are forced to take out insurance policies. So what can Muslims do if this is the situation? In my opinion, he should pay whatever money that he is forced to pay for insurance but he should not consider that it is a legal contract or agreement, but rather that it is money paid unjustly under pressure. If no loss occurs, this is by the Grace and Mercy of Allaah towards him and the money has been taken from him unjustly and he shall find it on the Day of Resurrection. In the event that he suffers some loss to his property and the insurance company intends to reimburse him, then, if the amount he is due back is equal to what he paid for his policy, he can justly take it. If, on the other hand, what he is due from the insurance company is more than he paid, he should not take more than the amount that he paid them. In this way, the process will, in my opinion, be in accordance with Islaamic law.”

[al-Aqalliyaat al-Muslimah – Page 63, Fatwa No.3]




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