• Transactions & Dealings >> Interest & Insurance

    Question ID: 150993Country: India

    Title: Insurance on vehicle

    Question: I know that insurance is haram in India because insurance company deals with interest money. Actually, I want to buy a vehicle but insurance for motor vehicle is mandatory in India. Can I take insurance? If I paid insurance premium regularly and by chance my vehicle will damage or broken then can I take insured money (sum assured) as per Shariah?

    Answer ID: 150993

    Bismillah hir-Rahman nir-Rahim !

    (Fatwa: 964/866/SN=8/1438)

    You can take the insurance policy which is legally mandatory on purchasing the vehicle, but if sometimes unfortunately the vehicle meets an accident then you may take only as much amount from your insurance policy as you have deposited in installments, but if you get more then since this addition is interest hence it shall not be lawful for you to use it in your personnel need rather it shall be wajib to give it to the poor and needy ones without the intention of reward.

    Allah (Subhana Wa Ta'ala) knows Best

    Darul Ifta,

    Darul Uloom Deoband, India