Zakaat on insurance amount
Premiums are given to insurance companies under various policies. Regardless of which policies are permissible as per the Shariah and which are not, here the ruling of the Zakaat of that collected amount is being described.
There are 2 opinions of the scholars about the amount collected under insurance policies. Some scholars opine that Zakaat is not Compulsory on that amount as it is not in our possession and some opine that Zakaat is Compulsory on it. Their deduction is that the policy-holders are the owners of that amount. The second opinion is the more judicious one. Thus, Zakaat should be given on the amount of insurance.
However, the amount that will be given by the insurance company, as it has been given, Zakaat is not Compulsory on it.