Giving a gift at the discretion of ...

Egypt's Dar Al-Ifta

Giving a gift at the discretion of the giver


We reviewed request no. 1639 for the year 2006 which includes the following:

    The company where we work decided to include all of its employees under one group policy- it pays the premiums and is the beneficiary of the policy in the event of any accident happening to an employee. Two employees were involved in an accident which resulted in their deaths while they were in the company car. The insurance company will pay 40,000 LE on each one of them. Now the company wishes to waive its right to the value of the policy in favor of the families of the deceased. Are these considered a legal inheritance or a gift from the company which it may give at its discretion?


    If the case is as mentioned in the question, the sums of money which the company intends to give to the families of the deceased are considered gifts and not an inheritance. Therefore, it dispense them as it sees fit.

Allah Almighty knows best.

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