I recently had an accident and was advised to claim for my injuries even though they were minor (basic whiplash). I did so without exaggerating or lying about the injury I had and received a sum of money. Is this money ok to spend? I was told by someone that insurance money claimed is haraam but you are able to pay other insurance company, could I use this money to pay my future motor insurances? Or am I unable to spend it at all?
It is permissible to claim compensation for the injuries. The amount received will be Halaal and may be used for personal use as well as paying towards the insurance premiums, if taking out the insurance was compulsory.
and Allah Ta’ala Knows Best
Mufti Ebrahim Desai