public liability insurance

Question:

Is public liability insurance permissible? What about workmen compensation insurance?

Answer:

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

Workmen compensation insurance and public liability insurance contain the same unislamic elements as other types of conventional insurance, namely the elements of riba (interest), qimar (gambling) and gharar (excessive uncertainty). Therefore, just as other types of conventional insurance are not permissible according to Shariah, workmen compensation insurance and public liability insurance will also not be permissible.

And Allah knows best.

Mufti Faizal Riza
3/11/2011
Darul Ifta Australia
www.mufti-online.net

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