Our opinion on this matter is that all types of insurance are permissible, whether they are primary insurance such as health insurance and life insurance, or subsidiary insurance such as car insurance or phone insurance. The insurance you mentioned is subsidiary to the original Hajj contract. The default principle is that what is forgiven in subsidiaries is not forgiven in other matters. An example of this is the fetus in the womb of the sacrificial animal. If it is fully formed, it is permissible to eat it according to Abu Hanifa, Abu Yusuf, Malik, and Shafi’i, as it is considered an extension of its mother in terms of slaughter. However, it is not permissible to eat it without slaughtering if it is born alive or if it is taken out of the womb after slaughter while it is still alive.
Based on this, it is permissible for you to purchase this insurance, both primary and subsidiary, related to the Hajj contract.
A similar example exists in the Hanafi school, which is a guarantee against road hazards. Ibn Abidin stated: If a person says to another, “Take this route, for it is safe,” and he takes it and loses his belongings, the person who recommended the route is not responsible. But if he says, “If there is a danger and you lose your belongings, I will be responsible,” then he becomes responsible because he guaranteed the risk, and it becomes his duty to reimburse the other person for his loss. This is similar to what happens in insurance contracts, where the insurance company says, “Go for Hajj, and if you encounter a specific harm, we will cover the risk of the trip.”
Fatwa by: Dr. Khalid Nasr