Question Summary:
If my premium number comes in the prize draw, i could win a prize.Is this halal??

Question Detail:

In England, you can buy premium bonds. which throughout the year they dont give any interest. But they put the number of the premium bond in a prize draw at the end of the month. If my premium number comes in the prize draw, i could win a prize.Is this halal??
(like in Pakistan its called inaami bond).

Answer :

You have likened the In’aami bond of Pakistan to the Premium bond of England. As far as the In’aami bond, also known as Prize bond is concerned, it consists of two elements that render it impermissible, namely gambling and interest. If they are interest free, they are still impermissible for the following two reasons:
 
1. It involves gambling, which Islam forbids. The bond monies are either invested or given on interest bearing loans. The profits accrued therefrom are collected in a draw. Whoever’s bond number appears in the draw becomes entitled to the money. This is a gamble and is impermissible.
 
2. In’aami bonds could be classified as a partnership, as bond monies are jointly collected and invested, which makes all those that purchased bonds partners in the item invested. The principle in partnership is that all partners share in the profit of the investment in proportion to their contribution. In In’aami bonds, though they are partners, they do not share in the profit accrued from the investment, rather the monies are put in a draw and the one whose bond number appears in the draw becomes entitled to the money whilst the others are deprived of their monies. This is against the principle of a partnership and thus impermissible. (Refer to Aap Ke Masaail, vol 6, pg 272, Maktaba Bayyinaat)
 
 The late Grand Mufti of Pakistan, Mufti Rashid Ludhyani (Rahimahullah) had ruled In’aami bonds as Haraam and impermissible. (Ahsan Al- Fatawaa, vol 7, pg 26, HM Sa’eed)
 
We are unaware of the operational system of Premium bonds in England and thus unable to issue a ruling. We would appreciate if the contract of the premium bond scheme in England be forwarded to us for our review.
 
And Allah Ta'ala Knows Best


Ml. Talha Desai,
Student Darul Iftaa
Checked and Approved by:
Mufti Ebrahim Desai
Darul Iftaa, Madrassah In'aamiyyah