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Subject : Compulsory Automobile Insurance
Fatwa Number : 242
Date : 30-03-2009
Classified : Current Financial Issues
Fatwa Type : Search Fatawaa

Question :

Is comprehensive automobile insurance permissible although there is an Islamic insurance company? It is worth mentioning that one isn`t allowed to drive in Jordan without compulsory insurance.



The Answer :

All perfect praise be to Allah the Lord of the Worlds. May His peace and blessings be upon Prophet Mohammad and upon all his family and companions.

 

Commercial insurance is unlawful since it involves usury, uncertainty and gambling. Allah Says {What means}: "O ye who believe! Intoxicants and gambling, (dedication of) stones, and (divination by) arrows, are an abomination,- of Satan’s handwork: eschew such (abomination), that ye may prosper." {Al-Mai`dah, 90}. As for compulsory insurance, we pray that the insured don`t incur sin as they are obliged to have it. We advise the asker to resort to mutual insurance, which complies with the provisions of Islamic Law. And Allah The Almighty Knows Best.






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