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Is there Zakat on Aviva Life Insurance Plan?

Answered according to Hanafi Fiqh by


Is there Zakat on Aviva Life Insurance Plan?

In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.


Zakat is not binding on the premiums paid to the policy.  More importantly, life insurance policies are prohibited.  Entering into such contracts without any legal requirement or necessity is prohibited and sinful.

The Fiqh (jurisprudence of the Answer):

An insurance contract is a bilateral contract whereby the insurer promises and undertakes, in exchange for consideration called premiums to make a payment to either the insured or a third party if a specified event occurs[1].
Insurance contracts contains elements of interest (Riba), gross uncertainty (Gharar) and gambling (Maysir).  Thus, an insurance contract is an irregular and voidable (fāsid) contract in Shariah.
A voidable (Fāsid) contract results in the transfer of ownership of the counter values upon possession.  Thus, a policy holder loses ownership of the premiums.  Therefore. Zakat is not binding on the premiums.
Additionally, one should rescind and cancel such a policy as soon as possible to free themselves of being involved in contract of interest, gambling and gross uncertainty.
We encourage Insurance firms to consider setting up Shariah compliant windows for Takaful products as an alternative to Insurance for Muslims.
And Allah Ta’ālā Alone Knows Best

Mufti Faraz Adam

The views and opinions expressed in this answer belong only to the author and do not in any way represent or reflect the views of any institutions to which he may be affiliated.
Arguments and ideas propounded in this answer are based on the juristic interpretations and reasoning of the author. Given that contemporary issues and interpretations of contemporary issues are subjective in nature, another Mufti may reach different conclusions to the one expressed by the author. Whilst every effort has been taken to ensure total accuracy and soundness from a Shari’ah perspective, the author is open to any correction or juristic guidance. On the event of any juristic shortcomings, the author will retract any or all of the conclusions expressed within this answer.
The Shari’ah ruling given herein is based specifically on the scenario in question.  The author bears no responsibility towards any party that acts or does not act on this answer and is exempted from any and all forms of loss or damage.  This answer may not be used as evidence in any court of law without prior written consent from the author.  Consideration is only given and is restricted to the specific links provided, the author does not endorse nor approve of any other content the website may contain.


This answer was collected from, which is operated under the supervision of Mufti Faraz ibn Adam al-Mahmudi, the student of world renowned Mufti Ebrahim Desai (Hafizahullah).

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