buying insurance policy for masjid | buying carpet with insurance money

Question:

One of the masjids in Japan consists of two floors. From the beginning, they have declared that first floor is community center, and second floor is masjid. The committe of masjid has taken an insurance for the building of the masjid (fire insurance).

Once there was a typhoon which caused damage to the first floor of the masjid, and the insurance company has paid some amount to the masjid.

Can we use this amount to buy carpet etc for the first floor of the masjid?

Answer:

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

It is not permissible to buy conventional insurance policy, as all conventional insurance contain haram elements, such as riba (interest), qimar (gambling) and gharar (excessive uncertainty).

If, however, someone did buy an insurance policy (even though it is not permissible) and subsequently the insurance company paid him some money, then the person is only allowed to keep the amount that he paid to the insurance company as premium. The excess amount (i.e. anything more than what was paid to the insurance company as premium) is riba (interest) and it will not be permissible for him to keep it. He must dispose of the excess amount by giving it to the poor without intending to get rewards.

Based on the above, it will not be permissible for the masjid committee to keep the entire amount that was paid by the insurance company; instead, the committee can only keep the amount that they paid as premium to the insurance company. And it will be permissible for them to buy carpets for the masjid with this amount. As for the rest of the amount that the insurance company paid, it must be disposed of as described above; and it will not be permissible to buy carpets with it or to utilise it in any way.

In the future, the masjid committee must abstain from buying insurance policy.

And Allah knows best.

Mufti Faizal Riza
18/8/2012
Darul Ifta Australia
www.mufti-online.net

Answer approved by:

Mufti Husain Kadodia
Mufti Emran Vawda
Darul Iftaa Mahmudiyya, South Africa
www.askimam.org
www.daruliftaa.net

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