Car Insurance with Interest: Allowed?
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Car Insurance with Interest: Allowed?

Questioner

Ali

Reply Date

Apr 26, 2017

Question

As-salamu `alaykum. Can I buy car insurance which deals with interest?

Mufti

Answer


Car Insurance with Interest

Wa `alaykum as-salamu wa rahmatullahi wa barakatuh.

In the Name of Allah, Most Gracious, Most Merciful.

All praise and thanks are due to Allah, and peace and blessings be upon His Messenger.


In this fatwa:

If Islamic insurance is available, then you have to opt for it. Otherwise, you may buy car insurance and pay the price of the service by one cash payment, with no delay and no interest.


Responding to your question, Prof. Dr. Monzer Kahf, Professor of Islamic Finance and Economics at Qatar Faculty of Islamic Studies, states:

The car insurance contract does not deal with interest; it is either the company which sells its deals with interest, if it is a conventional insurance company, or the contract may contain interest clause in case of delayed payment.

If there is Islamic car insurance available, deal with it and you will have none of these problems. If Islamic insurance does not exist, take conventional insurance for car, pay the price of the service by one , with no delay and no interest and whatever the company does with other persons is none of your business.

In fact, owners and management of the company are responsible for what the company does, not you.

Allah Almighty knows best.




About Prof. Dr. Monzer Kahf

Professor of Islamic Finance and Economics at Qatar Faculty of Islamic Studies

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