I have an insurance which is legal required. Is money from the insurance company halaal

Question

Assalamoualaikoum warahmatoullahi wabarakaatuh.

My shop recently caught fire. It seems to have been due to an electrical short circuit.

1. Most of the goods have perished or became unsellable. Does this count as sadaqah?

2. I have an insurance which is legal required. Is money from the insurance company halaal?

JazakAllah khair

Ebrahim Ibn Ahmed Dadan · Accepted Answer

In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

Respected brother in Islam,

We are extremely sorry to hear of your loss and we make Dua that Allah ﷻ restore your goods and business. Ameen.

Any calamity which afflicts a believer brings him reward and expiates his sin, see the following Hadith:

Translation: Every calamity which afflicts a believer is a means of expiating his sin, even if it be sadness which overcomes him or a thorn which pricks him. [Muslim][1]

You will be rewarded for the stock which was lost during the fire.

If one has a mandatory insurance, it is permissible for him to claim proportionately to the premiums he has paid. It is not permissible to claim more than this. The extra amount will have to be distributed to the poor and needy.

And Allah Ta’ala Knows best

Ebrahim Ibn Ahmed Dadan

Student Darul Iftaa
Pietermaritzburg, South Africa

Checked and Approved by,
Mufti Ebrahim Desai.

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