FatwaSelangorTransactions & Finance
Hukum Status Pampasan Polisi Insurans Konvensional Selepas Kematian Pembeli Polisi
What is the status of conventional insurance policy compensation received by heirs after the policyholder dies?
Short answer
The Selangor Fatwa Committee ruled that conventional insurance is prohibited in Islam because it conflicts with Islamic principles, so the compensation received by heirs is considered non-Shariah-compliant wealth.
A reference, not a fatwa. First sentence of the summary below — read the original fatwa and consult your state authority before acting.
- Authority
- Selangor State Mufti Department
- Status
- Fatwa committee decision
- Series
- Keputusan Fatwa Tidak Diwartakan
- Topic
- Transactions & Finance
No evidence of gazettement in the source — this is not a gazetted fatwa.
Summary
The Selangor Fatwa Committee ruled that conventional insurance is prohibited in Islam because it conflicts with Islamic principles, so the compensation received by heirs is considered non-Shariah-compliant wealth. Only the principal amount the policyholder paid during their lifetime counts as part of the estate and is distributed under faraid. The compensation must be disposed of for purification, by handing it to Baitulmal or donating it to charity, including to the poor and needy.
Written in our own words from the original fatwa — check the source before acting on it.
Insurans Konvensional adalah suatu muamalat yang diharamkan oleh Islam kerana amat bercanggah dengan Prinsip Islam.
Read the full fatwa on the Selangor website (new tab)
How to cite
Cite the original fatwa and its authority. Rujuk Fatwa is only where you found it.
Selangor State Mufti Department. “Hukum Status Pampasan Polisi Insurans Konvensional Selepas Kematian Pembeli Polisi”, date not stated. https://www.muftiselangor.gov.my/2023/10/26/hukum-status-pampasan-polisi-insurans-konvensional-selepas-kematian-pembeli-polisi/. Found via Rujuk Fatwa: https://rujukfatwa.com/en/fatwa/heirs-conventional-insurance-payout-ruling-selangor-2011/