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Subject : Is the Portion that Remains from the Amount Taken from the Insurance Company to Repair Car Lawful?

Fatwa Number : 370

Date : 25-11-2009

Classified : Current Financial Issues

Fatwa Type : Search Fatawaa

Question :

I had a car accident. The insurance company gave me a certain sum to pay for the repair costs. However, a portion of that amount remained. What should I do with it? Should I give it back to the insurance company? Is it lawful for me to take it? What is the ruling of Sharia on such amount?

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.


What is paid by the insurance company upon the occurrence of a car accident isn`t the cost of the repairs only; it covers the drop in the car`s price as well. If what you were given equals the value of the damage done to your car and the drop in its market price then that amount is lawfully yours. However, if it is more than this, then you have to pay a visit to the insurance company and if it approves of your taking that amount then you should take it. And Allah The Almighty Knwos Best.



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