Fatwa #46727 August 2000Pakistan
Is it permissible for me to purchase a refurbished cell phone form an insurance company?
Question
Someone insured a cellphone with an Insurance company. A while later, thecellphone was reported damaged and the insurance company paid out theperson. The insurance company later on found that the cellphone (aftertesting) was in proper working order. Hence, the company, thereafter, put itup for sale. Is it permissible for me to purchase the cellphone?
Answer
The original transaction was insurance, which is not in accordance with
Shari'ah. However, when at the time of compensating the insured person the
insurance company paid the price of the cellular phone and took its delivery
from him it should be taken as a sale having taken place between the
insurance company and the insured person. By virtue of this the insurance
company acquires the ownership of the cellular phone. Therefore, purchasing
of the cellphone from the company is permissible. (Justice Mufti Taqi
Usmani, Pakistan)
From Al Mahmood 10