Question:
Assalamualaikum. I have tried my best to purchase motor insurance from several insurance companies like Etiqa Takaful and Takaful Malaysia. However, they inform me that it is unavailable because my motorcycle is very old. So, I have to take the insurance from a conventional company. What is the ruling?
Brief Answer:
Waalaikumussalam. Originally, it is wajib for a Muslim to try their best to search for insurance companies which operate in Islamic manner that also provide protection for vehicle. However, if the effort turns to no end and it is proven that there is no takaful company that provides insurance for old vehicle, then it is permissible for him to purchase conventional insurance.
This permissibility is due to abiding by the government’s order in obligating each vehicle with a vehicle insurance. So, this situation may be considered as suppressing need because defying it may result in the owner being punished and fined.
At the same time, it is reminded that this permissibility is temporary until it reaches a time where a takaful company offers such insurance. If that is the case, then changing to takaful company becomes obligatory.
Explanation
Alhamdulillah, praise and thanks to Allah for the countless blessings He has blessed us all with. Blessings and salutations to the Prophet Muhammad PBUH, his wives, his family, companions and all those that follow his teachings to the day of judgement.
Searching for something halal to be eaten or used in our daily life is a commandment made obligatory by Allah SWT upon all Muslims, because searching for halal will boost one’s faith, causes du’a be accepted and all good deeds are counted. Conversely, eating from the haram foods may block our du’a and good deeds from being accepted by Allah SWT.
It is narrated from Anas bin Malik RA, the Prophet PBUH said:
طَلبُ الحَلالِ وَاجِبٌ على كلِ مُسلِم
“Searching for halal is the obligation for every Muslim”
Narrated by al-Thabarani (8610)
The ruling of purchasing conventional insurance has been discussed in the 80th Convention of National Fatwa Committee for Islamic Religious Affairs Malaysia which convened on 1st to 3rd of February 2008. The convention has decided that the ruling of buying and purchasing the General Insurance including car insurance is impermissible in Islam.
Alternative of Takaful
Takaful means agreement of a group of individuals to guarantee and help each other to supply for certain need decided among them like providing compensation for certain calamities as well as other financial needs.
The Sharia Advisory Council, in its 24th meeting dated 24th April 2002, has resolved that the takaful business model based on tabarru` and wakalah is permissible. The wakalah contract is concluded between the participants and the takaful company, whereas the tabarru` contract is concluded amongst the participants only
Refer Sharia Resolutions in Islamic Finance Second Edition (pg. 63) by Central Bank
The dalil is the saying of Allah taala:
وَتَعَاوَنُوا عَلَى الْبِرِّ وَالتَّقْوَىٰ ۖ وَلَا تَعَاوَنُوا عَلَى الْإِثْمِ وَالْعُدْوَانِ
And cooperate in righteousness and piety, but do not cooperate in sin and aggression
Surah al-Mai’dah (2)
Problem Statement
Based on the above situation, firstly, we see that purchasing car insurance has become an obligation set by the government to protect the welfare of car owners if accidents occur. In fact, by not taking insurance or takaful, it may result in punishment and fine. Even if these situations do not affect one’s life, it becomes a suppressing need for each car owner that it may be considered as darurat (necessity).
This is strengthened by a legal maxim mentioned by Imam al-Suyuthi Rhm in his book, Asybah wa al-Nazhair (pg. 88)
الحاجة تنزل منزلة الضرورة عامة كانت أو خاصة
“A hajat (necessity) possibly falls under the category of desperate need whether it is in general or specific form”
Next, different from the Western countries, Malaysia has several takaful companies as alternatives to the available conventional insurance companies. Originally, it is wajib for a Muslim to put his effort to seek and search for takaful company that can provide car protection for him.
However, if after all effort were done and still no takaful company is able to take the responsibility, then in this situation, it is permissible to take conventional insurance until a period of time where a takaful company exists or so that is able to offer the same.
In conclusion, the above discussion shows that Islamic Sharia has given ease (al-taysir) towards its ummah in performing ibadah as well as undergoing his daily life. It functions as a way out from any hardship affecting a person unexpectedly.