Does cooperative car insurance with a monthly premium and investment of funds in halaal [permissible] ventures fall under the scenario you intended in Fatwa no. 472, and does the compulsory insurance that the Egyptian government obligates shop owners and workers to have fall under the first type, which is permissible, or the second, which is forbidden?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
Cooperative insurance is permissible in Islamic law because it is based on donation and cooperation to alleviate burdens. It is an application of the Almighty’s saying: "And cooperate in righteousness and piety." So, if five people agree to donate a monthly sum to be paid to whoever among them suffers harm, this is permissible cooperative insurance, and it is permissible to invest these funds in lawful ways. As for compulsory commercial insurance, it has been answered previously.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/61309
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- Original fatwa ID
- 61309
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- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
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- Read the full answer on Ftawy