Is insurance permissible ? Life, car, health, property, hazards, shipping, etc. : life and property insurances

Fatawa Question

Can u give some information on : 1. Life insurance to cover mortgage, 2. House contents insurance to cover loss and theft, 3. Building insurance to cover loss, damage etc. what is the Islamic stance on these issues given that life insurance will mean that if the breadwinner dies then the insurance company will pay the remaining mortgage thus meaning the wife could continue to live in the house without having to settle the remaining mortgage which would have been the case had there not been life insurance. In the case of contents insurance, one pays a premium and the insurance company pays out if there is any damage or theft of the household contents. In the case of the buildings insurance the mortgage lender requires it as a condition of lending the money in order to protect his / her property against any damage / fire etc. but the premium is paid by the lender. Your advice on the Islamic stance in each of these instances would be much appreciated. Wassalam

Fatwa

Click hereto view more

Publication Date

2002-04-27

Main Subjects

Financial and Accounting Sciences
Religion
Islamic Studies

Topics

• Islamic jurisprudence
• Contracts
• Insurance
• Taboos
• Business
• Life insurance
• Property
• Subprime mortgage

No. of Pages

2

Data Type

Fatawa

Language

English

Record ID

BIM-724408

• APA
• MLA
• AMA