Answered by: Alimah Fatima Begum
Question
Third-party insurance is mandatory by the government but I have taken a comprehensive policy and paid 450 GBP as premium
The vehicle got damaged due to some accident for that claim was asked to meet the expenses of repair ie 900 GBP got from the insurance company.
Please clarify for the amount received halal for me full or partially if partially the how much?
In the name of Allah the most Beneficent, the Most Merciful
Answer
All types of car insurance are harām whether it is third-party insurance or comprehensive insurance as it involves interest and gambling. If, however, one is obliged by the law of the country to do so, then he will be excused.
(Aap Ke Masāil, Vol.6, Pg.248, Maktaba Ludhyānwi)
Since car insurance is a legal requirement it is allowed. In the event of a claim, you should only take out how much you paid for the premium unless you are deserving of more which you need to cover the cost of the damages. If the company pays you more than that also, then you should give the remainder to charity.
In your situation, you need to look at how much it costs to repair the vehicle. If after repairs there is still money remaining, you should give it to charity.
Only Allah knows best.
Written by Alimah Fatima Begum
Checked and approved by Mufti Mohammed Tosir Miah
Darul Ifta Birmingham