Purchasing a car on the condition of insuring it
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Fatwa number ( 4737 )
Q: I am a business owner, and I approached a company specializing in the sale of heavy vehicles. I asked them to sell me a number of cars because they are suitable for our work and we are in need of them. They agreed to sell them to us on the condition that we insure each car with an insurance company. We asked them to increase the price of the car and that we have no involvement in the insurance, with the insurance being arranged through them, and they agreed. After a period of searching with them, they requested
from me a fatwa from your eminence that this is not permissible, regarding the insurance of the cars .
A: First: It is not permissible for you to buy a car on the condition that it is insured with an insurance company; because insurance is among the contracts of gharar (excessive uncertainty), ignorance, and riba (usury or interest) in its two types: riba al-nasi'ah (usury of deferment) and riba al-fadl (usury of excess in a like-for-like exchange). Second: It is permissible for you to buy the car from them at a price higher than its price if it were insured, and not insure it with an insurance company for the reason mentioned above.
Q: I am a business owner, and I approached a company specializing in the sale of heavy vehicles. I asked them to sell me a number of cars because they are suitable for our work and we are in need of them. They agreed to sell them to us on the condition that we insure each car with an insurance company. We asked them to increase the price of the car and that we have no involvement in the insurance, with the insurance being arranged through them, and they agreed. After a period of searching with them, they requested
from me a fatwa from your eminence that this is not permissible, regarding the insurance of the cars .
A: First: It is not permissible for you to buy a car on the condition that it is insured with an insurance company; because insurance is among the contracts of gharar (excessive uncertainty), ignorance, and riba (usury or interest) in its two types: riba al-nasi'ah (usury of deferment) and riba al-fadl (usury of excess in a like-for-like exchange). Second: It is permissible for you to buy the car from them at a price higher than its price if it were insured, and not insure it with an insurance company for the reason mentioned above.
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.