What is the ruling on cooperative insurance for cars?
Machine translationRead the Arabic original
The Shaykh : And because the women’s questions were absent from us.
The questioner : Indeed, they were absent. Oh, what. My salary.
The Shaykh : That is enough.
The questioner : This questioner says: Honorable Shaykh, I own a new car and I fear for it from theft and accidents. Since I have a colleague who insured his car with this company, the Islamic Cooperative Insurance Company, I ask you to clarify the ruling on this insurance. This company, in its advertising, presents a decision by the Council of Senior Scholars in its introductory brochure.
The Shaykh : All right, I want one of you to explain to me the insurance that the questioner referred to. Please.
The questioner : Every year.
The Shaykh : And if no accident occurs? If no accident occurs, are the money returned to him or not? All right, did you hear the brother say, he says, an insurance company takes from the insured, the car owner, one thousand riyals every year. If an accident happens to the car during that time, they repair the car, even if it reaches ten thousand. And if no accident occurs, the thousand goes to whom?
To the car owner. If this transaction is based on risk, because if an accident happens to the car, it is many times more than what the car owner paid, so what is the company?
Losing, losing, without a doubt. And if no accident occurs, the car owner is the one losing. And this transaction itself is maysir (gambling), which Allah the Exalted linked with the worship of idols, intoxicants, and divination by arrows, and He said:[Al-Ma'idah 5:90] So insurance in this form is forbidden, like the prohibition of intoxicants.
And it is not permissible, and do not be deceived by the large number of workers. The reference in the Shari'ah of Allah is to the Book of Allah and the Sunnah of His Messenger (peace and blessings be upon him).
And I have now clarified this for you. As for if the insurance has other forms besides what we heard, that requires a new understanding and a new ruling.
The questioner : Indeed, they were absent. Oh, what. My salary.
The Shaykh : That is enough.
The questioner : This questioner says: Honorable Shaykh, I own a new car and I fear for it from theft and accidents. Since I have a colleague who insured his car with this company, the Islamic Cooperative Insurance Company, I ask you to clarify the ruling on this insurance. This company, in its advertising, presents a decision by the Council of Senior Scholars in its introductory brochure.
The Shaykh : All right, I want one of you to explain to me the insurance that the questioner referred to. Please.
The questioner : Every year.
The Shaykh : And if no accident occurs? If no accident occurs, are the money returned to him or not? All right, did you hear the brother say, he says, an insurance company takes from the insured, the car owner, one thousand riyals every year. If an accident happens to the car during that time, they repair the car, even if it reaches ten thousand. And if no accident occurs, the thousand goes to whom?
To the car owner. If this transaction is based on risk, because if an accident happens to the car, it is many times more than what the car owner paid, so what is the company?
Losing, losing, without a doubt. And if no accident occurs, the car owner is the one losing. And this transaction itself is maysir (gambling), which Allah the Exalted linked with the worship of idols, intoxicants, and divination by arrows, and He said:
O you who have believed, indeed, intoxicants, gambling, [sacrificing on] stone alters [to other than Allah], and divining arrows are but defilement from the work of Satan, so avoid it that you may be successful.
يَا أَيُّهَا الَّذِينَ آمَنُوا إِنَّمَا الْخَمْرُ وَالْمَيْسِرُ وَالْأَنصَابُ وَالْأَزْلَامُ رِجْسٌ مِّنْ عَمَلِ الشَّيْطَانِ فَاجْتَنِبُوهُ لَعَلَّكُمْ تُفْلِحُونَAnd it is not permissible, and do not be deceived by the large number of workers. The reference in the Shari'ah of Allah is to the Book of Allah and the Sunnah of His Messenger (peace and blessings be upon him).
And I have now clarified this for you. As for if the insurance has other forms besides what we heard, that requires a new understanding and a new ruling.
Source
ابن العثيمين - لقاء مفتوح في جدة — archive.org (31:14)
The Arabic text is a machine transcription of the audio recording.