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Insurance On Safety Deposit Boxes

Question

Certain banks now have security box/safe installed in businesses. The moment the shopkeeper deposits funds into the box, the deposit is immediately recognized. The bank further insures the funds in the box.

Is it permissible for a Muslim shopkeeper to in stall this box in his business?

Answer

The money box (in our scenario) is installed by the security company (on behalf of the bank) with a feature that as soon as the funds are placed into the box, the deposit is recognized by the bank and a proof of the deposit is issued by means of a receipt. This is similar to depositing money into an ATM which is installed at the bank or mall etc. 

Once the funds are in the bank’s possession (by entering the funds into the box) the bank takes full responsibility of the said funds, since they have received the funds. Many of our Ulama consider funds deposited into the bank as a loan (to the bank), hence once the funds are in their possession they will be liable. Now, if the bank insures the box then this is a transaction between the bank and the insurance company. You will not be liable for the bank’s actions; hence it will be acceptable to install the box to deposit your funds.              

Checked and Approved By:

Mufti Muhammed Saeed Motara Saheb D.B.

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