I intend buying a car using the islamic financing where the bank buys the car and they sell it to you at a profit but where iam not comfortable is that the bank insists i should get a comprehansive insurance which i do not want iam prepared to get the ordinary 3 rd party insurance which is compulsory by law.i feel the bank is protecting there interest but is this allowed? Can i go ahead and get comprehensive insurance as without that they do not sell me the car.
Answer:
(Fatwa: 918/907=D/1429)
Third party insurance is allowed in emergency cases, but you should avoid comprehensive insurance. If the banks purchases the car and sells it to you on profit then it is lawful.
Allah (Subhana Wa Ta’ala) knows Best
Darul Ifta,
Darul Uloom Deoband