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I live in Saudi Arabia. Is it allowed to use co operative Insurance?

Answered as per Hanafi Fiqh by Askimam.org

Assalamualaikum, Dear Shaikh, I live in Saudi Arabia and bought a new car. One of the insurance companies (NCCI http://www.ncci.com.sa ) says that they offer co operative insurance and following is their policy Cooperative insurance aims to strengthen noble values like cooperation and social consolidation (takaful) among insured. In broad terms, this concept is based on the cooperation of policyholders to contribute funds to compensate those who experience an insured mishap. Because, the insurance operations belong to the NCCI’s policyholders, they are entitled to receive surplus funds from insurance operations after the necessary reserves have been allocated by the Company. Please let me know whether is Halaal to insure my car with this company or not. You can find more about their statements at http://www.ncci.com.sa/www/aboutus_01.htm Wa Salaam Shahab


From the explanation given on their web-site, it is apparent that their policies are not in accordance to Islamic principles and in addition to that they also re-insure with conventional re-insurance companies, thus it would not be halaal to insure your car with them.

and Allah Ta’ala Knows Best

Mufti Ebrahim Desai

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This answer was collected from Askimam.org, which is operated under the supervision of Mufti Ebrahim Desai from South Africa.

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