1 Question: A Muslim deliberately torches his insured house so that he may receive compensation from the non-Muslim insurance company. Is he allowed to do this? And is it permissible for him to receive the compensation?
Answer: It is not permissible for him to destroy and waste the property, nor is it allowed for him to give false information to the insurance company for the purpose mentioned above. The money received [in this process] is not lawful.
2 Question: Is it permissible to cheat insurance companies in non-Muslim countries when one is confident that it would not tarnish the image of Islam and Muslims?
Answer: It is not permissible.
3 Question: A Muslim in the West claims that he used to drive in his country for many years and supports his claim with a document from a given source so that he gets a preferable rate for his insurance premium. Is he allowed to change the fact in his statement, even if it is by tawriya (equivocation)? Is it permissible to help him for this purpose?
Answer: Lying for the above mentioned purpose is not permissible, nor is it allowed to claim money in this way; and duplicity in this is helping in committing a sin.
4 Question: Is life insurance permissible?
Answer: If the person who receives life insurance pays money and the insuring company is committed to insure him against illness or any incidents, there is no problem. As well, as part of this contract, the insured person can stipulate that at the end of the period of insurance, the company should give him or someone else the equivalent amount or more than what he himself had paid.