Ruling on Taking Out Insurance and Performing Hajj or ʿUmrah with the Money Received from It

What do the respected scholars and honorable Muftis say regarding the following issue: Is it permissible to participate in conventional insurance (bima policy), such as life insurance, car insurance, or home insurance? And is it allowed to perform Hajj or ʿUmrah using the money received from such insurance? If someone has already performed these noble acts using such funds, will they be accepted, or will the money and the journey be considered wasted? Kindly clarify and provide a detailed explanation.

الجوابُ حامِدا ًو مُصلیِّا ً

The conventional insurance policy (bima/insurance) is a combination of riba (interest) and qimar (gambling), both of which are strictly prohibited and unlawful in Shari‘ah. Therefore, the money received from such insurance is considered haram. Using this haram money for Hajj, charitable deeds, or even personal needs is not permissible. Instead, it is obligatory to dispose of this money by giving it in charity without the intention of reward. However, if someone has already performed Hajj using such money, although the obligation (fard) of Hajj may technically be fulfilled, but it will not earn any reward because it is not accepted.

مأخَذُ الفَتوی

ففی معارف السنن: من ملك بمل; خبیث ولم یمكنه الرد إلی المالك فسبیله التصدق علی الفقراء اھ (۱/ ۳۴)
و في حاشية ابن عابدين (رد المحتار): رجل دفع إلى فقير من المال الحرام شيئا يرجو به الثواب يكفر اھ (2/ 292)
وفیه أیضاً: (قوله كالحج بمال حرام) كذا في البحر والأولى التمثيل بالحج رياء وسمعة، فقد يقال إن الحج نفسه الذي هو زيارة مكان مخصوص إلخ ليس حراما بل الحرام هو إنفاق المال الحرام، ولا تلازم بينهما، (إلی قوله) مع أنه يسقط الفرض عنه معها ولا تنافي بين سقوطه، وعدم قبوله فلا يثاب لعدم القبول، ولا يعاقب عقاب تارك الحج. اهـ. (2/ 456)