Jordanian Iftaa' clarifies compensation ruling

The Iftaa' Department stated  Tuesday there is no objection to taking compensation from insurance companies.

A citizen involved in a car accident suffered physical injuries, including muscle bruises from falling on his back. He inquired about the Islamic ruling on receiving financial compensation from the insurance company for these injuries.

The Fatwa Committee clarified that compensation for material damage is permissible in Islamic jurisprudence. Scholars have detailed the legal reasons for financial compensation, supported by numerous evidences from the Quran and the practices of Islamic jurists. One such evidence is the Quranic verse: "And a compensation payment should be handed over to his family" (Al-Nisa: 92), indicating financial compensation for accidental death of an innocent person. Imam Al-Mawardi said: "Whoever destroys something is liable" (Al-Hawi Al-Kabir 7/121).

The legal principle is that compensation for damage is owed by the person directly causing it or responsible for it because the act itself necessitates compensation. Sheikh Al-Islam Imam Al-Ramli said: "Whoever destroys another's property or wrongfully uses it must pay for the damage and the usage fee" (Nihayat Al-Muhtaj 4/380).

Therefore, the Fatwa Committee concluded, "There is no objection to taking compensation from insurance companies if it is due to real damage caused by the accident and there is no fraud or deception involved." God knows best.