Question Summary:
Is it permissible to use the money received from PPI (Payment Protection Insurance) claims?

Question Detail:

Assalamoalaykum is it halaal to use money from ppi claims??

Answer :

In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

PPI (Payment Protection Insurance)^[1] is a form of conventional Insurance. Conventional insurance entails gambling and interest which renders it impermissible. Therefore it is not even permissible to take out PPI, let aside making claims from PPI ^[2]

If one took out PPI, he should make taubah and istighfaar and terminate it immediately. He may only claim the premiums paid. Any amount above the premiums is haraam.^[3]

And Allah Ta’āla Knows Best

Aboobakr Siddeeq bin Mufti Amjad Mohammad

Student Darul Iftaa

Azaadville, JHB, South Africa

Checked and Approved by,
Mufti Ebrahim Desai.

______

^[1] https://www.fca.org.uk/ppi/ppi-explained

What is PPI?

PPI was designed to cover repayments in certain circumstances where you couldn’t make them yourself. These include if you were made redundant or couldn’t work due to an accident, illness, disability or death.

^[2]  کتاب الفتاویٰ – (5/358)

جان و مال کا انشورنس اصل میں جائز نہیں

جدید فقہی مباحیث – (12/34)

ان اسباب و وجوہ کے تحت جمہور علماء کا نقطہ نظر یہی ہے کہ انشورنس کی مروجہ شکل حرام ہے

 ^[3]  فتاویٰ عثمانیہ  -  (7/289)

تاہم اگر کسی نے لاعلمی کے بناء پر اپنے آپ کو بیمہ کرالیا ہو تو اس کے لئے حکم یہ ہے کہ اس رقم میں سے اس نے جتنی اقساط جمع کی تھیں ، اس کے بقدر لینا صحیح ہے اور اس سے زائد لینا جائز نہیں