Q: I live in Europe (Holland), I want to ask whether it is permissible to take a liability insurance.
I have read many information about this issue and many ulema do forbid it. However i have found a fatwa issued by the European Fatwa Council (see below and the orginal fatwa is located at: http://www.e-cfr.org/data/cat30072008114456.doc on page 50) and see here there members of ulema of the counsil: http://www.e-cfr.org/en/index.php?ArticleID=305
This is the fatwa given by the European Fatwa Counsil (the deobandi scholars Mufti Taqi Usmani and Mufti Ismail Kaccholvi are a member of it):
Insurance and Reinsurance
Resolution
The Council discussed the research and the papers presented to it concerning the issue of insurance and how it is dealt with in Europe and reviewed the publications of the Fiqh Academies, conferences and scientific forums on this matter, and has arrived at the following:
First: Taking into consideration the resolutions issued by some FiqhAcademies that prohibit business insurance (which is based on fixed premiums without giving the insured any of the profits of the company or charging him any of its losses) and the lawfulness of cooperative insurance (which is based on regular cooperation among the insured and distributing the surplus, if any, among them – the role of the company being confined to running the budget of insurance and investing its assets), there are cases and environments that require solutions to deal with special situations and meet their needs, particularly the case of Muslims in Europe where business insurance is prevalent and where people are badly in need of benefiting by it to ward off the risks they are largely exposed to in daily life in all its forms, and in the absence of the Islamic alternative (i.e. the cooperative insurance) and the difficulty to find it nowadays. Therefore, the Council gives the fatwapermitting business insurance in the following and similar cases:
- The cases of legal compulsion, such as insurance on cars, machinery and equipment, for employees and officials (social security and pension), and some cases of health insurance, study insurance, etc.
- Cases where insurance is required to ward off critical situations and severe difficulty and where the risk in the system of business insurance is excused. Following are some examples:
- Insurance on Islamic institutions such as mosques, centers and schools, etc.
- Insurance on cars, machinery, equipment, houses, professional and commercial establishment, to avoid the perils that are difficult to cover such as fires, theft and the impairment of various facilities.
- Health insurance to avoid the high costs which the insured and the members of his family may have to pay, in the absence of free, slow, or technically low level health coverage.
Second: Postponing the subject of life insurance in all its forms to another session to complete its study.
Third: The Council recommends that wealthy and intellectual figures try hard to establish financial Islamic establishments, such as Islamic banks, and Islamic cooperative insurance companies as much as possible.[1]
[Resolution 7/6]
[1] Dr Muhammad Fuad al-Birazi, member of the Council, disagreed by saying: “I see that insurance is permissible if it compulsory by law, in addition to cooperative insurance if it is available. Otherwise, it is prohibited.”
In the light of this, is it permissible to take a liability insurance for the family (parents & children)?
A: We do not see any difference between the insurance system and the interest that is in vogue in banks. To us both seem to be identical. Hence, there is no reason why we should say that one is permissible and the other is not. Both are impermissible.
الَّذِينَ يَأْكُلُونَ الرِّبَا لَا يَقُومُونَ إِلَّا كَمَا يَقُومُ الَّذِي يَتَخَبَّطُهُ الشَّيْطَانُ مِنَ الْمَسِّ ذَٰلِكَ بِأَنَّهُمْ قَالُوا إِنَّمَا الْبَيْعُ مِثْلُ الرِّبَا وَأَحَلَّ اللَّـهُ الْبَيْعَ وَحَرَّمَ الرِّبَا فَمَن جَاءَهُ مَوْعِظَةٌ مِّن رَّبِّهِ فَانتَهَىٰ فَلَهُ مَا سَلَفَ وَأَمْرُهُ إِلَى اللَّـهِ وَمَنْ عَادَ فَأُولَـٰئِكَ أَصْحَابُ النَّارِ هُمْ فِيهَا خَالِدُونَ ﴿البقرة: ٢٧٥﴾
يَا أَيُّهَا الَّذِينَ آمَنُوا إِنَّمَا الْخَمْرُ وَالْمَيْسِرُ وَالْأَنصَابُ وَالْأَزْلَامُ رِجْسٌ مِّنْ عَمَلِ الشَّيْطَانِ فَاجْتَنِبُوهُ لَعَلَّكُمْ تُفْلِحُونَ ﴿المائدة: ٩٠﴾
عن جابر رضي الله عنه قال لعن رسول الله صلى الله عليه وسلم آكل الربا وموكله وكاتبه وشاهديه وقال هم سواء رواه مسلم ( مشكوٰة المصابيح ص244)
عن أبي هريرة عن رسول الله صلى الله عليه وسلم قال ليأتين على الناس زمان لا يبقى أحد إلا أكل الربا فإن لم يأكله أصابه من بخاره ويروى من غباره رواه أحمد وأبو داود والنسائي وابن ماجه ( مشكوٰة المصابيح ص245)
وعن عبد الله بن حنظلة غسيل الملائكة قال قال رسول الله صلى الله عليه وسلم درهم ربا يأكله الرجل وهو يعلم أشد من ستة وثلاثين زنية رواه أحمد والدراقطني وروى البيهقي في شعب الإيمان عن ابن عباس وزاد وقال من نبت لحمه من السحت فالنار أولى به ( مشكوٰة المصابيح ص245)
Answered by: