Category: Business Matters
Fatwa#: 41186
Asked Country: Poland

Answered Date: Sep 27,2018

Title: Is it permissible to use the money received from PPI (Payment Protection Insurance) claims?

Question

Assalamoalaykum is it halaal to use money from ppi claims??

JazaKAllah 

Answer

In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

PPI (Payment Protection Insurance)[1] is a form of conventional Insurance. Conventional insurance entails gambling and interest which renders it impermissible. Therefore it is not even permissible to take out PPI, let aside making claims from PPI [2]

If one took out PPI, he should make taubah and istighfaar and terminate it immediately. He may only claim the premiums paid. Any amount above the premiums is haraam.[3]

And Allah Ta’āla Knows Best

Aboobakr Siddeeq bin Mufti Amjad Mohammad

Student Darul Iftaa

Azaadville, JHB, South Africa

Checked and Approved by,
Mufti Ebrahim Desai.

 


[1] https://www.fca.org.uk/ppi/ppi-explained

What is PPI?

PPI was designed to cover repayments in certain circumstances where you couldn’t make them yourself. These include if you were made redundant or couldn’t work due to an accident, illness, disability or death.

 

 

 

        [2]  کتاب الفتاویٰ – (5/358)

جان و مال کا انشورنس اصل میں جائز نہیں

جدید فقہی مباحیث – (12/34)

ان اسباب و وجوہ کے تحت جمہور علماء کا نقطہ نظر یہی ہے کہ انشورنس کی مروجہ شکل حرام ہے

 

 [3]  فتاویٰ عثمانیہ  -  (7/289)

تاہم اگر کسی نے لاعلمی کے بناء پر اپنے آپ کو بیمہ کرالیا ہو تو اس کے لئے حکم یہ ہے کہ اس رقم میں سے اس نے جتنی اقساط جمع کی تھیں ، اس کے بقدر لینا صحیح ہے اور اس سے زائد لینا جائز نہیں

DISCLAIMER - AskImam.org questions
AskImam.org answers issues pertaining to Shar'ah. Thereafter, these questions and answers are placed for public view on www.askimam.org for educational purposes. However, many of these answers are unique to a particular scenario and cannot be taken as a basis to establish a ruling in another situation or another environment. Askimam.org bears no responsibility with regards to these questions being used out of their intended context.
  • The Shar's ruling herein given is based specifically on the question posed and should be read in conjunction with the question.
  • AskImam.org bears no responsibility to any party who may or may not act on this answer and is being hereby exempted from loss or damage howsoever caused.
  • This answer may not be used as evidence in any Court of Law without prior written consent of AskImam.org.
  • Any or all links provided in our emails, answers and articles are restricted to the specific material being cited. Such referencing should not be taken as an endorsement of other contents of that website.