WHAT IS THE RULING ON THE USE OF INSURANCE MONEY IN ISLAM ?

 Order for insurance money

 Question:

 A man met with an accident in which he died.  The company he was employed in gave money and the driver he met also gave some money to his family.  And the deceased had also taken insurance for himself. 

 (1) What should be done with this insurance money now?  .  The deceased has small children who are not adults, now his uncle wants to collect all these money along with insurance money and buy a house and rent it to the children.  And since insurance money is haram, he says that some money from the rent should be given to a poor person, through which this haram money will be eliminated. 

 (2) Is this situation permissible?

 (3) If not, how to help these children, what should be done about this insurance? 

 (4) If trade is made with the property of orphans so that the property is not wasted and the orphans benefit, then how should this property be invested in trade or how should the profit be distributed among the children? 

ANSWER

 (1): Insurance is forbidden and impermissible in the Shariah;  Because both interest and gambling (gambling) are found in insurance and both of them are strictly forbidden.  And if someone had taken out insurance in the law, then the entire amount received in the name of insurance on completion of the period or before the accidental death will not be lawful and permissible;  Rather, the original money collected by the insurance holder in different installments, only that amount will be halal and permissible, and it will be necessary to give the remaining money as a reward to the poor and needy.

 (2): All the insurance money will not be permissible for the purchase of a house for the children of the deceased;  Rather, only halal and permissible money can be invested in the purchase of a house or any goods etc.

 (3, 4): The legitimate money for the purpose of insurance will be distributed among all the heirs of the deceased according to Sharia.  Will continue to do.  And if any suitable and satisfactory business can be done with this money, it should be followed after advice from experience.