AskImamDarul Iftaa Mahmudiyyah (AskImam)

There is fear of damage and fire in the coming elections here. Is fire insurance allowed thus?

· 16 Rajab 1425 AH1 min readFatwa 12562English
Finance and Commerce

Question

We have a lot of goods (clothing) in stock - susceptible to fire. In the elections there might be such a problem. Fire insurance is only 0.2 percent of the value payable annually. Can we insure the property thus. As in case of fire, we can get bankrupt.

Answer

This form of insurance is against Islamic principles. Every measure of precaution need to conform to the principles of the Shari?ah and not in any manner against the Shari?ah.

According to the Shari?ah, every transaction between two parties in which payment by party (a) to the other (party b) is certain, while payment by party (b) to party (a) depends on a contingency, will be gambling and deception, hence, unlawful.

and Allah Ta'ala Knows Best

Mufti Ebrahim Desai

Answered by
Mufti Ebrahim Desai
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