Is Third party insurance permissible?

· 15 Dhuʻl-Qiʻdah 1441 AH1 min readFatwa 45657English

Question

Assalamu'alaikum... How are you? Got another question that I'm assuming you already know.

1) Is Third party insurance permissible (the one where they don't pay you anything but they pay for damage to the other person's car if you're in an accident)?

2) If not then are there any permissible options like takaful?

Answer

In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

1) All types of conventional insurances are harām whether they are third party insurance or comprehensive insurance as they involve interest, gambling and deception. If, however, one is obliged by the law of the country to take out insurance, then one will be excused.

2) The Darul Iftaa has requested a meeting with Takaful experts to understand the Shariah aspect of the scheme. We will be able to advise thereafter.

And Allah Ta’āla Knows Best

Ahmad Patel

Student Darul Iftaa

South Africa

Checked and Approved by,
Mufti Ebrahim Desai.

References (Arabic / Urdu sources)

فتاؤي عثماني جلد 3 ص314

انشورنس سود اور قمار پر مشتمل ہونے کی بنا پر بالکل حرام ہے- البتہ جو انشورنس حکومت کی طرف سے لازمی ہو، مثلاً موٹر وغیرہ کا بیمہ، اس کو مجبوراً کرا سکتے ہیں، مگر جب رقم ملے

تو صرف اتنی رقم خود استعمال کر سکتے ہیں جتنی خود داخل کی تھی، اس سے زائد نہیں

جديد فقهي مباحث جلد 12

امداد الفتاوى جلد 3 ص 161 مكتبه دار العلوم كراچي

Answered by
Ahmad Patel
Checked & approved by
Mufti Ebrahim Desai
Questions about this ruling, answered only from the archive with sources.

Where scholars differ, it’s safer to take the more cautious view.

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