What is the ruling on comprehensive insurance for goods and vehicles, and what is its ruling if it covers only the goods or only third-party liability?
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The questioner : The questioner says: May the Shaykh be respected, we have cargo transport trucks, the trailers, that operate on the land roads in the Kingdom for a fee, and the cargo is of very high value. Sometimes Allah decrees a traffic accident for one of these trailers while it is loaded with cargo, and the cargo is destroyed along with the entire vehicle or part of it, and we bear the value of the damaged cargo along with the repair of our vehicles. So my question, O respected Shaykh, is what is the ruling on comprehensive insurance for the cargo and the vehicle?
Second: What is the ruling on insurance for the cargo only?
Third: What is the ruling on insurance for third-party liability only?
The Shaykh : As for the first, if the vehicle is involved in an accident and the cargo in it is destroyed without negligence on the part of the owner and without transgression on his part, then he bears no liability, and it is not permissible for the owner of the goods who loaded them to hold the vehicle owner liable, because this money is in his hand as a trust; he took it with the owner's consent and loaded it in the vehicle, so he is a trustee. And every trustee under whose custody destruction occurs without transgression or negligence bears no liability, and it is not permissible for the owner of the goods to demand compensation from him. Even if it were assumed that he demanded it and made him his opponent, while knowing that the vehicle owner did not transgress or act negligently, then what he takes, even by a judge's ruling, is forbidden for him, by the saying of the Prophet (peace and blessings be upon him):. This is one point.
But if it was due to transgression on his part or negligence, such as unusual speed, or negligence regarding the wheels and not paying attention to them, or something else, then yes, he bears the liability.
As for insurance, it is forbidden, whether on the vehicle, or on the money, or on the vehicle and the money, or for third-party liability; it is all forbidden, it is all gambling. Allah Mighty and Majestic said:[Al-Ma'idah 5:90] So Allah coupled gambling with intoxicants, sacrificial stones, and arrow sticks, and insurance is from gambling.
And some people have confused the issue with the Department of Ifta in the Kingdom of Saudi Arabia, claiming that it permits commercial insurance like what the questioner asked about. The Ifta Committee, headed by His Eminence Shaykh Abdul Aziz ibn Baz, issued a statement that this is a lie against the Committee, and that the Committee only permits cooperative insurance, meaning: that a fund is established among the family into which money is placed, and whoever is involved in an accident is helped from it, and nothing is returned to him. And that what was attributed to the Senior Scholars' Committee is confusion and deception. So my advice to my Muslim brothers in general is to fear Allah Mighty and Majestic and not to violate the sanctities of Allah, and to know that wealth was created for them and they were not created for wealth, and to know that wealth is a loan, either you lose it in your lifetime or you die and it becomes for those who come after you.
So insurance in all its colors and forms is forbidden.
But it was said to us: Some countries compel a person to insure and do not give him a vehicle license or any transaction except with insurance, so what does a person do?
We say: This is a dire necessity. Give them what they asked of you for insurance, but if an accident happens to you, do not return to them except for the amount you gave them, because the contract between you is invalid by the Shari'ah, and if it is invalid by the Shari'ah, then what it entails and necessitates is invalid, and it is not permissible for you to take except the amount that was taken from you only. Yes.
Second: What is the ruling on insurance for the cargo only?
Third: What is the ruling on insurance for third-party liability only?
The Shaykh : As for the first, if the vehicle is involved in an accident and the cargo in it is destroyed without negligence on the part of the owner and without transgression on his part, then he bears no liability, and it is not permissible for the owner of the goods who loaded them to hold the vehicle owner liable, because this money is in his hand as a trust; he took it with the owner's consent and loaded it in the vehicle, so he is a trustee. And every trustee under whose custody destruction occurs without transgression or negligence bears no liability, and it is not permissible for the owner of the goods to demand compensation from him. Even if it were assumed that he demanded it and made him his opponent, while knowing that the vehicle owner did not transgress or act negligently, then what he takes, even by a judge's ruling, is forbidden for him, by the saying of the Prophet (peace and blessings be upon him):
I only judge according to what I hear, so if I cut off for someone something from his brother's right, then I am only cutting off for him a piece of fire, so let him take little or much.
إنّما أقضي بنحوِ ما أسمع، فمن اقتطعت له شيئاً من حقّ أخيه فإنّما أقتطع له جمرة من النّار فليستقلّ أو ليستكثرBut if it was due to transgression on his part or negligence, such as unusual speed, or negligence regarding the wheels and not paying attention to them, or something else, then yes, he bears the liability.
As for insurance, it is forbidden, whether on the vehicle, or on the money, or on the vehicle and the money, or for third-party liability; it is all forbidden, it is all gambling. Allah Mighty and Majestic 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.
يا أيّها الذين آمنوا إنّما الخمر والميسر والأنصاب والأزلام رجس من عمل الشّيطان فاجتنبوه لعلّكم تفلحونAnd some people have confused the issue with the Department of Ifta in the Kingdom of Saudi Arabia, claiming that it permits commercial insurance like what the questioner asked about. The Ifta Committee, headed by His Eminence Shaykh Abdul Aziz ibn Baz, issued a statement that this is a lie against the Committee, and that the Committee only permits cooperative insurance, meaning: that a fund is established among the family into which money is placed, and whoever is involved in an accident is helped from it, and nothing is returned to him. And that what was attributed to the Senior Scholars' Committee is confusion and deception. So my advice to my Muslim brothers in general is to fear Allah Mighty and Majestic and not to violate the sanctities of Allah, and to know that wealth was created for them and they were not created for wealth, and to know that wealth is a loan, either you lose it in your lifetime or you die and it becomes for those who come after you.
So insurance in all its colors and forms is forbidden.
But it was said to us: Some countries compel a person to insure and do not give him a vehicle license or any transaction except with insurance, so what does a person do?
We say: This is a dire necessity. Give them what they asked of you for insurance, but if an accident happens to you, do not return to them except for the amount you gave them, because the contract between you is invalid by the Shari'ah, and if it is invalid by the Shari'ah, then what it entails and necessitates is invalid, and it is not permissible for you to take except the amount that was taken from you only. Yes.