Insurance on vehicle

Answered according to Hanafi Fiqh by
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?

بسم الله الرحمن الرحيم

(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 knows Best!

Darul Ifta,
Darul Uloom Deoband

This answer was collected from the official ifta website of Darul Uloom Deoband in India.

Find more answers indexed from:
Read more answers with similar topics:
Subscribe to IslamQA Weekly Newsletter

Subscribe to IslamQA Weekly Newsletter

You will receive 5 Q&A in your inbox every week

We have sent a confirmation to you. Please check the and confirm your subscription. Thank you!