IslamQA

Using interest money to pay for insurance

Answered according to Hanafi Fiqh by Muftionline.co.za

Q: I got a NRI bank account which is a savings account and every quarterly I receive some interest from the bank. Is it permissible for me to use this interest amount in purchasing car insurance or any other insurance like medical, home insurance, etc.?

Bismillaah

A: Give the interest money acquired through the bank in charity without the intention of receiving any reward. You should open an account which does not accrue interest so that you will be saved from the curse of interest.

As far as taking out an insurance policy is concerned, it is not permissible for you to take out an insurance contract (whether car insurance, medical insurance or home insurance, etc.) as all forms of insurance are haraam in islaam due to the elements of gambling and interest being found in them.

Therefore, by you wishing to pay the insurance company with the interest money acquired through the bank, you will only be compounding the sin of interest. Hence, You should refrain from this and sincerely repent to Allah Ta’ala for any type of involvement in interest.

And Allah Ta’ala (الله تعالى) knows best.

 

Answered by:

Mufti Zakaria Makada

Checked & Approved:

Mufti Ebrahim Salejee (Isipingo Beach)

This answer was collected from MuftiOnline.co.za, where the questions have been answered by Mufti Zakaria Makada (Hafizahullah), who is currently a senior lecturer in the science of Hadith and Fiqh at Madrasah Ta’leemuddeen, Isipingo Beach, South Africa.

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