Question: 

If we would like to open a car  rental company, due to the possibility of  the car getting bumped, stolen or damaged is it permissible to take out insurance on behalf of the opposite party that is renting the car from us.

Answer: 

All forms of voluntary insurance are not permissible in Islam. This prohibition would include life insurance, insurance of property and insurance of motor vehicles; be it comprehensive or opposite-party insurance. The reason is that there are two Haraam ingredients involved in insurance schemes, one being interest and the other, gambling. The interest aspect comes in when, after paying a minimal amount of premiums, a substantially greater amount is received to cover one’s losses. The gambling aspect comes to the fore due to the fact that insurance is like a game of chance: If you suffer a loss in your property or vehicle, you would receive a monetary kickback from the insurance company that would be far in excess of the premiums paid in by you. If on the other hand, there is no loss sustained, then instead of receiving something back, you would have to forfeit the entire premiums that you paid in.i

We should abstain from getting involved in insurance and place our trust in ALLAH TA’AALA with the firm conviction that only He will protect our assets and protect us from financial predicaments. If we keep our Yaqeen (conviction) strong then surely ALLAH Ta’aala will assist us in such matters from unimaginable sources. Allah Ta’aala says in the Holy Quraan:

وَمَنْ يَتَّقِ اللَََّّ يََْعَلْ لَهُ مََْرَجًا ) 2( وَيَرْزُقْهُ مِنْ حَيْثُ لََ يََْتَسِبُ وَمَنْ يَتَوَكَّلْ عَلَى اللََِّّ فَهُوَ حَسْبُه ) الطلاق ١ - ٢ )

“He who fears Allah Ta’aala, for him He prepares a way out, and He provides for him from sources he could never imagine and he who puts his trust in Allah Ta’aala, Allah Ta’aala will suffice for him.”

Note: In some countries it is compulsory to contract an insurance policy for one’s vehicle otherwise one is not allowed to drive. In this case it will be permissible to enter into an insurance contract. But you must choose the cheapest (low cost) option available.ii Even in the situation where the law of the country compels one to take out insurance, for Ihtiyat (precaution sake), if a person does receive an amount because of an accident and this person wants to stay away from interest because of his Taqwa, he can add up all the premiums that he paid to the insurance company and also all the amount of money that the company paid to him for claims. If the amount he paid in as premiums is less than what he received for his claims, (and he is of a good financial standing), it will be better for him to give away this difference/excess to the poor.

AND ALLAH TA'AALA ALONE IN HIS INFINITE KNOWLEDGE KNOWS BEST

ANSWERED BY: Mohmmad Anas Khan 

CHECKED AND APPROVED BY: Mufti Muhammed Saeed Motara Saheb D.B. 

Islamic Date:١٦ جمادى الأولى ١44١ 

English Date: 12 January 2020

i ُرْمَْلْا اََّنَِّا اْ وُنَمٰا َنْيِذَّلا اه يَا َیَ{ ُباَصْنَْ لَاَو ُر ِ سْيَمْلاَو ْ وُبِنَتْجاَف ِناَطْيَّشلا ِ لَمَع ْنِم ٌسْجِر ُم َ لَْزَْ لَاَو ه دئالما[ }َنْ وُحِلْفُت ْمُکَّلَعَل ۃ : ۹۰ ] وَأَحَلَّ اللََُّّ الْبَيْعَ وَحَرَّمَ ال رِبََ)البقره/ 2٧٥ )

عن عبد الله بن عمرو، قال: قالِ رسول الله صلى الله عليه وسلم : "إن الله حرم على أمتي الْمر، والميسر، والمزْر، والكُوبَةَ، والقن ين، وزادني صلاةَ - - الوتر"مسند الإمام أحمد بن حنبل 6٥4٧ )دار الحديث القاهرة( –

نَََى رَسُولُ اللََِّّ صلى الله عليه وسلم عَنْ بَيْعِ الحَْصَاةِ وَعَنْ بَيْعِ الْغَرَر)مسلم ١٥١٣ ،سنن النسائي 4٥١٨ )

)الربَ( لغة: مطلق الزیَدة، وشرع اً: فضل خال عن عوض بمعيار شرعي مشروط لأحد المتعاقدين في المعاوضة)اللباب،بَب الربَ(

* انشورنس سود اور قمار پر مشتمل ہونے کی بنا پر بالکل حرام ہے البتہ جو انشورنس حکومت کی طرف سے لازمی ہو، مثلاً موٹر وغیرہ کا بیمہ، اس کو مجبورا کًرا سکتے ہیں، مگر جب رقم ملے تو - صرف اتنی رقم خود استعمال کر سکتے ہیں جتنی خود داخل کی تھی، اس سے زائد نہیں ) ي جلد فتاؤي عثمان 3 ص 314 )

ii الضرورات تبيح المحظورات ومن ثم جاز أكل الميتة عند المخمصة)...( ما أبيح للضرورة يقدر بقدرها)الَشباه(