Fatwa No : 82290
Ruling on Taking an Insurance Policy

Ruling on Taking an Insurance Policy

What do the esteemed scholars and respected Muftis say regarding the following matter: My son, Muhammad Munir Khan, works in Saudi Arabia. Since he has to travel to Saudi Arabia, it is mandatory by the Government of Pakistan to obtain an insurance policy. Without it, permission to travel to Saudi Arabia and other such countries is not granted. In such a situation, is it permissible to take an insurance policy? Furthermore, is it permissible to use the amount received under this policy? The documents of the insurance policy are attached with the question.

الجوابُ حامِدا ًو مُصلیِّا ً

Conventional insurance policies involve elements of gambling and interest-based transactions; therefore, they are not permissible in Shariah. Hence, whether the insurance is related to life or other assets, it must be avoided. However, if a certain policy is legally made compulsory and there is no alternative but to adopt it, then taking such a policy is allowed in Shariah due to necessity. Therefore, in the case of the questioner’s son, there is a valid excuse to take the insurance policy. Nevertheless, any additional amount received from the insurance beyond the original premium paid should not be used for personal benefit; instead, it must be given to an eligible recipient of Zakat without the intention of reward.