Insurance money accident
Mu' meneen Brothers and Sisters,
As Salaam Aleikum wa Rahmatullahi wa Barakatuh. (May Allah's
Peace, Mercy and Blessings be upon all of you)
One of our brothers/sisters has asked this question:
Al-Salamu Aliekum WaRahmat Allah WaBrakatoh,Over a year ago, a
drunk driver caused the death of one of my kids and seriously injuring the
others. Al-hamed Lillah the injured ones have fully recovered. The driver had
no insurance. My car insurance has covered the medical expenses and offered
monetary compensation. Additional compensation has been offered by the car
manufacturer. Q1. Is this money Halal for us to take?The car insurance wants to
offer part of the money for the young kids as a trust account that is payable
to them at the age of 18. They simply designate another insurance company to
invest for the kids and pay a higher amount for them when they reach 18 years
of age. Assuming the money is Halal (answer to Q1), I am not comfortable with
this arrangement since it sounds to me like Riba. Q2. Is it really a Riba as I
suspect? Q3. Can I donate part of this money to charity given it mostly belong
to my kids who suffered the most in the accident?Jazakum Allah Kahir.
(There
may be some grammatical and spelling errors in the above statement. The forum
does not change anything from questions, comments and statements received from
our readers for circulation in confidentiality.)
Answer:
In the
name of Allah, We praise Him, seek His help and ask for His forgiveness.
Whoever Allah guides none can misguide, and whoever He allows to fall astray,
none can guide them aright. We bear witness that there is no one (no idol, no
person, no grave, no prophet, no imam,
no dai, nobody!) worthy of
worship but Allah Alone, and we bear witness that Muhammad(saws) is His
slave-servant and the seal of His Messengers.
Q-1:
Is this money Halal for us to take?
There is
a provision in Shariah for the inheritors of the deceased to demand and take
the ‘diyya’ or blood money from the one who kills another in an accident. The majority of the scholars are of the
opinion that if the car manufacturer or the insurance company offers
compensation to the heirs of the deceased, there is no harm in accepting it.
Q-2:
The car insurance wants to offer part of the money for the young kids as a
trust account that is payable to them at the age of 18. They simply designate
another insurance company to invest for the kids and pay a higher amount for
them when they reach 18 years of age. Assuming the money is Halal (answer to
Q1), I am not comfortable with this arrangement since it sounds to me like
Riba. Q2. Is it really a Riba as I suspect?
Indeed,
the arrangement that the money is invested in a trust, and a higher amount is
paid after a period of time, would be considered a manifest form of ‘riba’; and
the believers have been commanded by Allah Subhanah to abstain from all
dealings in ‘riba’.
It would
be best to take the amount they offer on an immediate basis, and abstain from
their option of getting an higher amount increased by ‘riba’ at a later date in
time.
Q-3:
Can I donate part of this money to charity given it mostly belong to my kids
who suffered the most in the accident?
The
‘diyya’ or the blood money would belong to the inheritors of the deceased, and
they may use it as they wish. There is
absolutely no harm if one gives a part or even all of it to charity, if one
wishes to do so, and expect their reward from their Merciful and Bounteous Lord
on the Day of Judgment.
Allah Says in the Holy Quran Chapter 2 Surah Baqarah verses 261-262:
261 The parable of those who
spend their substance in the way of Allah is that of a grain of corn: it grows
seven ears, and each ear has a hundred grains!
Allah gives manifold increase to whom He pleases; and Allah cares for
all and He knows all things.
262 Those who spend their
substance in the cause of Allah, and follow not up their gifts with reminders
of their generosity or with injury, for them their reward is with their Lord;
on them shall be no fear, nor shall they grieve.
Whatever
written of Truth and benefit is only due to Allah’s Assistance and Guidance,
and whatever of error is of me. Allah
Alone Knows Best and He is the Only Source of Strength.
Your Brother in Islam,
Burhan
Wister