As an example only, we would like to include two Fatwas from a popular Arab website that claims to have a large following. We leave the decision on the readers to see whether the answers to the questions are contradictory or conforming to the Fatwa.
(Names and addresses withheld to avoid personal confrontation)

Question 1:

I was in a traffic accident when I was riding in a taxi. My spinal cord was damaged and I became handicapped for all the life. Now I am getting the salary from the insurance company who also pays the salary to my helper who pushes my wheelchair. What is the Islamic ruling on this compensation, is it legitimate for me?

Answer:
Praise be to Allah.
Firstly:
All commercial insurance contracts are Haraam contracts, as they involve gambling and Gharar (ambiguity). We have discussed the fact that it is Haraam to subscribe to them voluntarily.
Secondly:
The basic principle is that the one who causes the accident is the one who should pay for any injury or damage that results from it, and he should pay the compensation. If he has a contract with an insurance company to pay the costs of any damages, there is nothing wrong with the one who is entitled to compensation taking his rights and compensation in full from the insurance company. The one who is entitled to that has nothing to do with the prohibition on the dealings between the one who caused the accident and the insurance company. He can take his rights from anyone who has an obligation to pay it, and the insurance company is obliged to give him this right.
Based on this, there is nothing wrong with you accepting compensation– even if it is paid monthly – from the insurance company. The same applies to the salary of your companion and helper as answered by Sheikh……………..

Question 2 :

In our country, if a driver kills or injures somebody, the insurance company pays the compensation on his behalf. What is the ruling on this? Please note that the state is ruled by manmade laws.

Answer:
Praise be to Allah.
Firstly:
Commercial insurance is a forbidden kind of contract, and it is Haraam in all forms. It is not permissible for anyone to participate in it unless he is forced to do so.
Secondly:
The fact that it is Haraam to participate in insurance does not mean that it is Haraam to take one’s rights from the insurance company if it is required to pay to someone who has been affected by an accident.
Based on this, there is no reason why one should not take the “Diyah” (compensation) for one who has been killed by accident or injured in an accident from whatever entity those who are entitled to it have been referred, whether by the killer or the court, whether it is an insurance company or otherwise, because those who are entitled to the diyah are people who have a right, and they are not responsible for the other party’s dealings with the insurance company. We asked Sheikh ………… about taking compensation from the insurance company and he replied:
‘That is permissible, because these companies are committed to bearing costs incurred by the one who is insured with them, and there is no reason to refrain from doing that so long as they are obliged to pay compensation. All that the one who caused the accident has to do – in the case of a death
– is offer the expiation for accidental killing, if the accident was caused by a mistake on his part. And Allah knows best”.

The readers have to note that on one hand the insurance is declared Haraam and on the other hand, taking compensation is declared Halaal. The logical verdict of Ulema is based on internal elements or variables involved in Haram and Halal. The elements of Haram and Halaal are different.The compensation paid by the insurance company is conditional. Unless one insures, the company does not pay any money on his behalf. If insuring is Haraam, how is it that the benefit of a Haraam act becomes Halaal for others? If a person makes theft and brings the money to home and his family knows it, is this income Halaal for the wife and children as they are not responsible for the source of the income. Suppose the driver does not insure, how can the insurance company pay the compensation on his behalf? Without the insurance he will have to remain in the prison as long as the compensation is not paid.

By that time shall his family suffer in the same way as the family of the deceased suffers? Is it not fair and just that a third party (insurance) pools the contribution from everyone and helps to each affected? Is this justice against Islam? Taking insurance compensation from the company is Halaal but buying insurance from them is Haraam – is there any logic? As the Sheikh says to neglect the source but use the compensation money, on the same principle, just for the argument sake, why can’t we neglect how the insurance company invests and gets profit? Is it not enough that the insurance company is giving assurance that no investment is being made in any venture, which is against the law.