QA-ID-0054
QUESTION
What is the ruling on taking out phone insurance or insurance on other electronic gadgets?
Is it permissible to get home insurance?
ANSWER
﷽
In general, insurance of any kind is impermissible since it is tantamount to gambling. It involves paying premiums to mitigate future risks, where the outcome is uncertain, and the loss of premiums is the most probable scenario. Thus, obtaining insurance for phones and electrical devices is certainly not permissible. The same ruling applies to home insurance.
The only exception to this general prohibition is when insurance is mandated by law, such as in the case of car insurance, where non-compliance results in legal consequences. When it is mandated by law in this manner, it becomes a form of compulsion similar to taxation, for which individuals are not considered sinful and are excused. In all other cases, any type of insurance is not permissible.
As an alternative, individuals should build an emergency fund by saving a portion of their income regularly. This fund can then be utilised to cover any future issues or unexpected expenses that may arise.
(See Majlis e Shar’ī Ke Faisle 1/126)
والله تعالى أعلم
And Allāh Knows Best
Muhammad Kalim Misbahi
