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Search Fatawaa

Subject : Ruling on Comprehensive Vehicle Insurance

Fatwa Number : 459

Date : 25-01-2010

Classified : Current Financial Issues

Fatwa Type : Search Fatawaa

Question :

I`m planning to buy a car by installments via Islamic Murabaha and get comprehensive vehicle insurance, what is the ruling of Sharia on this type of insurance?

The Answer :

All perfect praise be to Allah the Lord of the Worlds. May His peace and blessings be upon our Prophet Mohammad and upon all his family and companions.

We (Iftaa` Department) support the view agreed  upon by modern Fiqh academies; commercial insurance is prohibited while cooperative-interdependent insurance is permissible, be it comprehensive or third-party liability insurance.

If it is commercial insurance that relies on gambling as means of making profit, then it is prohibited. But, if it is comprehensive or third-party liability insurance that rests on the principle of interdependence and cooperation with the intention of donation and charity without making profit by means of chance, then it is permissible and there is no sin in it. And Allah The Almighty Knows Best.



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