Insurance and Hawaala business
| Fatwa #1401 | Category: Business & Trade | Country: Zambia | Date: 11th July 2025 |
| Fatwa #1401 | Date: 11th July 2025 |
| Category: Business & Trade | |
| Country: Zambia | |
Question
Is it business or shop insurance is halal or haram..??
Hawala business is halal..?
Waiting for ur guidelines pls..
Answer
In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.
Business/shop insurance is not permissible due to the elements of gambling and gharar found in insurance.
The current common understanding of Hawaala is a mixture between a transfer of debt as well as agency to make payment. Usually, a payer engages a transferor to pay a debt on his behalf to a creditor. Thereafter, the transferor will hold the payer liable for the amount transferred. This is permissible. In this case, the amounts being rotated will always be equal. If different currencies are used, refer to the link attached at the end. It is permissible for the transferor to charge a fixed fee for providing this service.
If it is only a case of exchanging currencies in two different countries, then this is also permissible and the person facilitating the exchange of currencies may stipulate a charge for doing so. For additional laws regarding currency exchange, refer to the link below.
https://daruliftaazambia.com/fatwa/?id=1493
https://daruliftaazambia.com/fatwa/?id=95
https://daruliftaazambia.com/fatwa/?id=335
And Allah Ta’āla Knows Best
Mufti Bilal Pandor
Concurred by
Mufti Muhammad Patel
Darul Iftaa Mahmudiyyah
Lusaka, Zambia