Fatwa: # 15585
Category: Jurisprudence and Rulings...
Country: Pakistan
Date: 26th August 2007

Title

Are we allowed to do car insurance?

Question

I live in Lahore, Pakistan. I have just bought a car. Now many of my friends advice me to insure my car. here in my city the traffic is quite mismanaged and the traffic rules are easily broken. Considering this situation can I insurance of  my car? The insurance companies ask for 5 to 6% of the cars price and give complete protection for one year. please advice.

Answer

In the name of Allah, Most Gracious, Most Merciful

Assalaamu `alaykum waRahmatullahi Wabarakatoh

Third party insurance is not permissible as it consists of interest and gambling. Insurance also has an element of garar (uncertainty) in it, which is also prohibited.

 

And Allah knows best

Wassalam

Mufti Ebrahim Desai
Darul Iftaa

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