Q: Is a warranty permissible for car repairs, including parts and labour? الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: Such warranties are a form of conventional insurance and suffer from the prohibited element of gross uncertainty and are not permissible.
Read more...Category: Insurance Fatawa
Is conventional insurance permitted when required by law?
Q: Is conventional insurance permitted when required by law? الجواب حامدًا و مصليًا و منه الصدق و الصواب A: If the law of a country requires its citizens to take out insurance, such as in the case of car-insurance within the law of England and Wales, one should first seek to take out a policy […]
Read more...How can I make up for being dishonest with insurance companies?
Q: I have been dishonest when it comes to car insurance for e.g. by claiming on someone else’s, falsifying mileage and driving without insurance. How can I rectify these mistakes? I used my dad’s break down cover on my car which covers, the cover holder on multiple cars, with my dad’s permission, to get my […]
Read more...Is the Takaful model the government wants to introduce for funding university tuition permissible?
Q. Please can you advise as to the shariah permissibility of the Takaful model the government wishes to introduce as alternative finance for funding university tuition fees? الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A. The tentative opinion of Al-Qalam Panel is that an amended version of the Takāful model proposed in the BIS consultation […]
Read more...Please can you advise on the Shariah permissibility of guarantees and extended warranties.
Q: Please can you advise on the Shariah permissibility of guarantees and extended warranties. By guarantees I mean when the manufacturer gives a guarantee for a product without any monetary compensation and extended warranty where essentially a guarantee for the product is purchased. الجواب حامدًا و مصليًا و منه الصدق و الصواب A: Guarantee The […]
Read more...In the case of an insurance claim, can one include the value of the premiums paid for other cars?
Q: I understand that with car insurance claims, one should only recoup a sum equivalent to the total paid to a particular company to date, and any excess received beyond this sum be ‘repaid’ through future premiums to that same company. In both cases (historical payments and futures insurance cover), can one include the value […]
Read more...Is comprehensive car insurance permitted or should third party insurance only be taken?
Q: Is comprehensive car insurance permitted or should third party insurance only be taken? الجواب حامدًا و مصليًا و منه الصدق و الصواب A: In the case that only conventional insurance is available, if the requirements of the law are met by third party only insurance and this incurs less cost in payable premiums than […]
Read more...What is the ruling on life insurance?
Q: What is the ruling on life insurance? Does the ruling differ if one truly thinks ‘they need it’, as oppose to seeking financial security. And lastly, is it OK for them to take it if they have found an edict espousing a view holding it as permissible? الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: […]
Read more...Is it permissible to purchase car insurance in instalments?
Q: Is it permissible to purchase car insurance in installments due to necessity when one cannot afford a one off payment. installments also have an added interest charge per month. For example: a one off payment will cost 1000 pounds and in 12 installments it’ll cost 1200 pounds. As insurance contains elements of interest could […]
Read more...Can I take medical insurance as part of my salary package?
Q: Can I take medical insurance as part of my salary package? If an employer gives you a choice between taking some extra cash other than salary or get medical benefits, and one knows that medical benefits / insurance is more beneficial to him in terms of his expenses, and therefore he chooses to get […]
Read more...If a Muslim needs to claim on their car insurance policy, can they benefit from the entire amount of money?
Q: If a Muslim needs to claim on their car insurance policy, can they benefit from the entire amount of money, or only that amount which equals premiums paid to date? الجواب حامدًا و مصليًا و منه الصدق و الصواب A: The premiums paid under conventional insurance are paid through an irregular contract according to […]
Read more...Should one opt for third party or fully comprehensive insurance cover if third party is more expensive as is the case in many situations?
Q: Should one opt for third party or fully comprehensive insurance cover if third party is more expensive as is the case in many situations? الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: You should opt for the cheapest quote irrespective of the level of cover as the purpose is to fulfill a […]
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