Insurance on credit cards
Question: 21886
If we want to get a credit card such as Visa or Mastercard, then insurance on it is compulsory, so that if it is stolen or if money is stolen from someone else through it, compensation will be paid by the insurance company.
Praise be to Allah, and peace and blessings be upon the Messenger of Allah and his family.
This insurance is haraam and is not permissible. It is a type
of gambling, which Allaah has forbidden in His Book. Allaah says
(interpretation of the meaning):
“O you who believe! Intoxicants (all kinds of alcoholic
drinks), and gambling, and Al‑Ansaab (stone altars for sacrifices to idols,
jinn, etc), and Al‑Azlaam (arrows for seeking luck or decision) are an
abomination of Shaytaan’s (Satan’s) handiwork. So avoid (strictly all) that
(abomination) in order that you may be successful”
[al-Maa’idah 5:90]
The insurance company
takes the premium, then if the card is stolen it pays compensation, but if
nothing happens it keeps those payments.
Whether a theft will occur or not is something that is
unknown, and the amount, if any, that may be stolen if the card is stolen is
also unknown. This is obviously deceit and ambiguity.
Their taking the money, if nothing happens, is consuming
people’s wealth unlawfully. Allaah says (interpretation of the meaning):
“O you who believe! Eat not up your property among
yourselves unjustly except it be a trade amongst you, by mutual consent”
[al-Nisa’ 4:29]
This is in addition to
the fact that most credit cards are also subject to conditions that involve
riba (usury, interest), etc.
Source:
Islam Q&A
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