IslamQA

Road Accident Fund

Answered according to Hanafi Fiqh by Muftionline.co.za

Q: The road accident fund agrees to pay a person involved in a motor vehicle accident R100 000 for general damages. This agreement is taken to the high court so it can be made into a court order. The court order is made on 1 january 2017 that the road accident fund will pay the person R100 000. The court order further states: “In the event of the aforesaid amount not being paid timeously, the defendant shall be liable for interest on the amount at the rate of 10.25% per annum, calculated from the 15th calendar day after the date of this order to date of payment.” The road accident fund pays the amount after 6 months of the court order and therefore interest is also received on top of the R100 000.

The question is: Is this extra amount received interest according to the shariah?

Bismillaah

A: This amount which is paid by the road fund is from the side of the government. The government has offered this assistance to the citizens of the country. Hence, since the government is offering this assistance, it is permissible for one to accept this assistance. The additional amount over the 100 000 is being referred to as interest. However, it is not interest, as this additional amount does not come under the shar’ee definition of interest. Rather, the entire amount will be treated as an assistance from the government and it is permissible for one to accept this assistance.

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

(Scroll down for more information regarding this question)

وتثبت الولاية بأسباب أربعة: بالقرابة، والملك، والولاء، والإمامة.(فتح القدير 3/255)

باب الربا هو لغة: مطلق الزيادة وشرعا (فضل) ولو حكما فدخل ربا النسيئة والبيوع الفاسدة فكلها من الربا فيجب رد عين الربا لو قائما لا رد ضمانه لأنه يملك بالقبض قنية وبحر (خال عن عوض) خرج مسألة صرف الجنس بخلاف جنسه (بمعيار شرعي) وهو الكيل والوزن فليس الذرع والعد بربا مشروط) ذلك الفضل (لأحد المتعاقدين) أي بائع أو مشتر فلو شرط لغيرهما فليس بربا بل بيعا فاسدا (في المعاوضة) فليس الفضل في الهبة بربا

قال الشامي: (قوله أي بائع أو مشتر) أي مثلا فمثلهما المقرضان والراهنان قهستاني قال: ويدخل فيه ما إذا شرط الانتفاع بالرهن كالاستخدام والركوب والزراعة واللبس وشرب اللبن وأكل الثمر فإن الكل ربا حرام كما في الجواهر والنتف. (رد المحتار مع الدر المختار 5/168-170)

الربا فضل خال عن عوض شرط لأحد المتعاقدين في المعاوضة (فتح باب العناية بشرح النقاية 2/355)

Answered by:

Mufti Zakaria Makada

Checked & Approved:

Mufti Ebrahim Salejee (Isipingo Beach)


Q: This is a follow up question on the Road Accident Fund question:  

The court orders the RAF to pay interest (which is not interest according to Shariah) for late payment of the R100 000. Because the RAF paid 6 months later, the plaintiff received R100 000 from the RAF plus an additional amount (over and above the R100 000) for late payment as per court order.

This ‘extra interest amount’ (which is not interest money according to the Shariah) which is received from the Road Accident Fund, can it be classified as ta’zeer bil maal? If it is ta’zeer bil maal then is this extra amount permissible to use?

 

Bismillaah

A: The court as well as the RAF are run by the government and their internal workings will not affect us. Therefore, when the entire amount is coming from the side of the government, it will be treated as government assistance and it will be permissible for one to accept it. It will not be regarded as interest as it does not enter under the shar’ee definition of interest.

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

 

Answered by:

Mufti Zakaria Makada

Checked & Approved:

Mufti Ebrahim Salejee (Isipingo Beach)

This answer was collected from MuftiOnline.co.za, where the questions have been answered by Mufti Zakaria Makada (Hafizahullah), who is currently a senior lecturer in the science of Hadith and Fiqh at Madrasah Ta’leemuddeen, Isipingo Beach, South Africa.

Find more answers indexed from: Muftionline.co.za
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!