Question:

My father was in a small accident. We filed a claim to insurance and they approved. My father asked for lost wages. They said to just rent a similar vehicle; if one is not available then wages will be covered. Me having a different company other them my father, I asked my father if it would be okay if I broker this deal as to to I get it at a certain rate and give it to him at a certain rate. He approved and agreed. I spoke to the adjuster and got $ 225 a day with 25 cents per mile approved and wants us to pay for it and then reimburse my father. I found and rented a vehicle at $70 a day with 19 cents a mile. Will it be permitted for me to broker this deal in such a manner. The adjuster asked me what the name if the company was I told him ABM( which is my company) he approved the rate mentioned above. Now upon returning the vehicle I will pay for the rental then turn around and invoice the insurance company. I am questioning if this will be a Halal earning for me?
 
JazakAllahkher

Answer:

بسم الله الرحمن الرحيم

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

All conventional insurance, including third party and comprehensive car insurance, contain elements of riba (interest) and qimar (gambling), which have been explicitly prohibited in the Holy Quran and the ahaadith. Therefore, it is not permissible to get these types of insurance.  
 
Nevertheless, if insurance is a legal requirement such as in order to drive a car, then one will be excused. However, one should only purchase the minimum insurance which fulfils the legal requirement. Also, in case of an accident, it will be permissible to reclaim from the insurance company only that amount which you had paid (in the form of premium). Any excess will count as riba.   
 
As for making money in the manner you have stated, it is not permissible regardless of whether or not insurance is involved, as it entails lying and deception.
 
Note: If your insurance company is an Islamic institution that works on the principles of takaaful, write back to us. *

And Allah Ta'ala knows best.
 
Sh.   Muaaz Murtaza
 14/11/2023
 
Checked  and  approved  by:
Mufti Faizal Riza
Mufti Anas  Qazi
 
Darul  Ifta Australia
www.fatwa.org.au

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*References:
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قال تعالى :((واحل الله البیع و حرم الربوا)) (سورة البقرة: الآيت ٢٧٥).

 

في سنن ابن ماجه: "مَنْ غَشَّنَا فَلَيْسَ مِنَّا". (سنن ابن ماجه. حديث ٢٢٢٥. باب النهي عن الغش). 

 

في سنن أبي داود: عن خريم بن فاتك قال : صلى رسول الله صلى الله عليه وسلم صلاة الصبح، فلما انصرف قام قائما فقال: "عدلت شهادة الزور بالإشراك بالله" ثلاث مرار، ثم قرأ ((فاجتنبوا الرجس من الأوثان واجتنبوا قول الزور حنفاء لله غير مشركين به)) (الحج:٣١). (سنن أبي داود. حديث ٣٥٩٩. كتاب الأقضية).

 

 في فتاوی عثمانی: سوال: - کیا انشورنس جائز ہے؟ مثلاً زندگی ، گھر ، مال وغیرہ کا؟

جواب:- انشورنس سود اور قمار پر مشتمل ہونے کی بناء پر بالکل حرام ہے، البتہ جو انشورنس حکومت کی طرف سے لازمی ہو، مثلاً موٹر وغیرہ کا بیمہ، اس کو مجبوراً کرا سکتے ہیں، مگر جب رقم ملے تو صرف اتنی رقم خود استعمال کر سکتے ہیں جتنی خود داخل کی تھی ، اس سے زائد نہیں۔ والله اعلم. (فتاوی عثمانی. ج٣. ص٣١٤. ط معارف القران).