Insurance of Life and Property due to Communal Violence

The justification or otherwise of Insurance under the prevailing conditions of India was put for deliberation in the light of the questionnaire issued by the Academy. All kinds of life, property and various other insurances were discussed at length in the Fifth Seminar on Islamic jurisprudence and a committee was formed consisting of the following persons to submit its proposals:

The committee considered all pros and cons of the issue and felt that the policy of Insurance Companies is not clear whether the loss of life and properties because of communal riots is covered under the existing laws and regulations of Insurance or not.

It was felt by the committee that the issue should be further probed and discussed at length and full details regarding different schemes be obtained from insurance experts.

This proposal of the committee was accepted in the general session of the Fifth Seminar and the following committee consisting of the following members was constituted to formulate a final opinion after considering the issue from every angle in consultation with the experts.

After due deliberations the committee presented its recommendations in the ensuing Seminar of the Academy and the following statements were accepted by the attending experts.

45.1 The constant peril to the life and properties of Muslims in India under the prevailing circumstances due to recurring communal riots and the gross negligence of the government officials towards their prime duty of providing protection to the Muslims bordering on encouragement and, at times, actual participation in the riots as also the lack of interest shown by the government machinery in providing compensation for the destruction of life and property of the Muslims was discussed at length in the Fourth Seminar held at Hyderabad. It was decided to form a committee to go into the issue and submit its observations to be considered at the next Seminar (See report of the Fourth Seminar). Keeping in view the fact that Majlis-e-Tehqiqat-e-Shariah, Lucknow had taken the decision in favour of Insurance in 1960 and also the recent Fatwa issued by Darul Ifta, Darul Uloom, Deoband, the committee gave its recommendation in favour of Insurance.

45.2 Hence it was resolved: Although insurance itself is not permissible as it contains the elements of chance, gambling and interest, however, in view of the grave and constant danger to the life, property and business of the Muslims under the conditions prevailing in India, Insurance of life and property is allowed against communal violence and with certain conditions.

The following theologians and Muftis have put their signatures on this important decision: