Q: A family member's car was stolen. They are getting paid out by the insurance. They have been accredited for Hajj today. Can this insurance money be used to perform Hajj?
A: If the payout is equal or less than the amount that they spent in insurance premiums, then this money is halaal for them as it is the same money that they paid to the insurance company. However, if they receive more than the amount they paid, then the extra amount is haraam and should be given to the poor without the intention of receiving any reward.
Note: All insurance contracts and policies are haraam in shariah as they contain the elements of gambling and interest. Hence, a believer should refrain from getting involved in this.
And Allah Ta'ala (الله تعالى) knows best.
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