Health Insurance and Other Issues (Live Fatwa)

Questions and Answers of a Live Fatwa Session with Dr. Monzer Kahf
MK - Foto

On Wednesday, Sept. 26, 2012, we managed to run a successful e-mail based Live Fatwa session on “Health Insurance and Other Issues” with Dr. Monzer Kahf—the prominent Muslim economist and counselor.

Interestingly, users reacted positively and sent their questions via the Fatwa section’s e-mail address in and ahead of the session’s time. The honorable guest, Dr. Monzer Kahf answered all the questions.

Below you can review all questions and Dr. Kahf’s replies:


Question 1:


BSD and GPL Projects

As-salam `alaykum. Is contributing to and creating new BSD and GPL projects halal? 




Dear Br. Anas,

Please, explain in English words what these are. I cannot give opinion on websites.


Question 2:

Naved – 27 – Male – Indian

Health Insurance

I am an Indian. I just want to know: is it permissible in Islam to have the health insurance?


Dear Br. Naved,

Of course, insurance is what is controversial. Once we solve that it does not matter whether it is health or others.

Insurance is objected to by many scholars on the basis of ambiguity in the responsibility of the company because of inability to determine at the time of contract what will happen in the future.

There are scholars who believe insurance is permissible because this ambiguity is contained by maximums and by probability theory and actuarial studies. I belong to this view.

Therefore, in my opinion, health insurance is permissible.

Allah Almighty knows best.


Question 3:

Khurram Shiraz

Islamic View of Power f Sales Houses

Salam. In Canada, there is no Islamic banking so far. There are some Islamic financial organizations, but the problem is that most of them are taking money from non Islamic financial organizations. So people criticize Islamic way of financing by saying that although agreement between Islamic Financial Organization and lender is free from interest, the agreement between Islamic organization and conventional banks / financial organization is still based on Interest.

The problem becomes more complicated as these Islamic organizations do not show their own agreements with lender.

In such case what is responsibility of lender? Can he proceed as at least his own agreement is interest free?

Second, there is very common statement going on in Canadian Muslims which is that any power of sale house or foreclosure house (which is owned by bank due to previous defaulters) is completelyhalal as long as you are taking mortgage from the same bank who owns the bank.

Please, clarify this point as how comes it become permissible in such scenario as mortgage is still conventional and interest based. Regards, Khurram Shiraz.


Dear Br. Shiraz,

For the first point: it is wrong to ask where these Islamic orgs get their money from. If they are doing haram in the way they get, it is their sin not that of persons who use their facilities. You should not interfere in what other persons do as that is none of our own business. Of course we may advise them but the contract between finance provider and you is the only thing literally which matters to you.

Besides, I know all these orgs who provide Islamic finance in Canada, get funds from depositors or from conventional banks and credit unions in ways that are Shari`ah compliant. It is a mere false accusation. Remember that there are always crooked persons among Muslims and also among non-Muslims who may cheat finance users.

By the way, you used the word lender twice in a wrong way. Maybe you mean finance user instead.

For the second point: your statement is vague there is nothing “power of sale house”. If you mean whether it is permissible to buy the house from the bank if the house is on foreclosure, yes it is permissible of course you have to buy it in accordance with Shari`ah not on same conventional mortgage.

If you ask whether the bank (Islamic or conventional) has a right to sell when the purchaser stop payment, yes it has this right.

Allah Almighty knows best.


Question 4:

Sarwar Alam – 54 – Male – Bangladesh

Zakat Calculation

Dear Brother, I want to know the calculation of Zakah of a share, price of which was Taka (Bangladeshi currency) 100.00 at the time of buying. But now market price is Taka1000.00. I am not person who lives on buying & selling share/bond. This share is remaining with me for years. Regards.


Dear Br. Alam

Zakah is due on the market price on the day of end of hawl (lunar year) of zakah. It doesn’t matter high or low.

Allah Almighty knows best.


Question 5:

Reda Al-Qadi – Egfypt

As-salamu `alaykum. A car company sells a car to the buyer directly without dealing with a bank but on conditionals:

- The first condition is an interest of 9.6 from the rest of the price. Namely, if you bought a car for 100.000, and paid 50.000, the company would add the interest on the other 50.000 for three years.

- The second is that you can’t sell the car during the period of installment.

- The third is you will be fined 50 pounds if you delayed more than 30 days for paying the amount of installment.

My question is: is it allowed to buy a car by this contract? Thanks.


Dear Br. Reda,

If the contract says, about the remaining part which is made on installments, loan and interest as mentioned in the question, my answer is NO, it is not permissible.

But if the car is sold for a total price, higher than the cash price, and calculated such as the rate on deferment is 9.6% or any other fair rate which is mutually acceptable to both parties, the same is then permissible.

The fine on delinquency of payment is permissible provided it should be given to Muslim charities or directly to the poor and needy not to the seller or finance provider.

Allah Almighty knows best.


Question 6:

M. Shakeel Khan

As-salamu `alykum. Is it permissible for a student to go for `umrah or Hajj, with a student loan, which he intends to pay, in full, within the grace period, without any interest, after completing his college? Jazak Allah Khair.


Dear Br. Shakeel,

If his intention to pay the student loan within the grace period is coupled with his real ability to do so, I find no reason why not using the student loan for Hajj or any other purpose.

Allah Almighty knows best.


Question 7:

Houda A

Financial Issues

If someone bought a house with mortgage already, do they have to sell it? Also, are there any banks in Canada you would recommend for someone to use to buy a house, and for student loans? Also, what can one work in Canada, as a female, and as a halal job?


Dear Sr. Houda,

No one is not required to sell if one bought a house with mortgage if it is the house to reside in. try to make full payment as soon as possible and meanwhile if you find a good opportunity to sell it and buy on Islamic finance if it is available equally one must do that at the appropriate time without incurring losses.

For other two questions I am not qualified to answer them. I know there are many jobs available for Muslim males and females.

Allah Almighty knows best.

The editor of OnIslam Live Fatwa service.

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