Mufti Online — Madrasah Ta'leemuddeen

Assurance from a service company of replacement or compensation in the event of damage or destruction to a vehicle

· 11 Jumada II 1445 AH1 min readEnglish

Question

Is it permissible to engage the services of an individual or a security company that extends a commitment to safeguard my vehicle, with assurances of either replacement or compensation equivalent to its value in the event of damage or destruction?

Answer

If one pays an individual or a company a certain amount (whether he pays a once off payment or he pays monthly premiums, etc) for them to assure him that in the case of damage or destruction, they will either replace his vehicle or compensate him the value of the vehicle, then this is not permissible in shariah. This is regarded as insurance and insurance is haraam on account of the elements of interest (riba) and gambling being found in it.

And Allah Ta'ala (الله تعالى) knows best.

Answered by
Mufti Zakaria Makada
Checked & approved by
Mufti Ebrahim Salejee (Isipingo Beach)
View original Compare with other Darul Iftas
Questions about this ruling, answered only from the archive with sources.

Where scholars differ, it’s safer to take the more cautious view.

Fatawa SA is an independent, read-only index of fatawa already published by Mufti Online — Madrasah Ta'leemuddeen. It is not a fatwa service. For your own situation, please ask a Mufti. Report an issue

For corrections or mistakes, please email us at fatawasa786@gmail.com.

Source: Mufti Online — Madrasah Ta'leemuddeen — https://muftionline.co.za/node/34427
Fatawa SA: https://fatawa.co.za/fatwa/muftionline-34427

People also ask

Is insurance permissible?

“Life insurance policies are Haraam as it is based on interest, gambling and uncertainty (Gharar). Make Taubah and Istighfaar for your mother for engaging in Haraam dealings. There are severe warnings cited in the Mubarak…”

Ibn Masood · 392 fatawa from 7 Darul Iftas on this

What the Darul Iftas say

Related fatawa