What is the ruling on profits earned from shares in car insurance companies?
All current forms of commercial insurance are (forbidden) because they involve riba (usury/interest) and (excessive uncertainty), and this includes car insurance. The company may not need to repair anything for some policyholders and yet collect money from them every year. Conversely, it may collect a small amount of money from some and incur significant losses on their behalf. This type of insurance may also lead some policyholders to drive recklessly, causing accidents, fatalities, and damages, simply because they know the company will bear the consequences. Therefore, participating in commercial insurance companies and profiting from them is haram, and these profits must be disposed of by spending them on charitable causes.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
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Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 18340
- Added here
- . This is when the answer was added to El Fatwa, not the fatwa's date.
- Text
- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
- Read the full ruling
- Read the full answer on Ftawy