What is the ruling on taking out a car loan from a company that requires mandatory insurance on it, as well as other returns disbursed to the employee based on this insurance?
Firstly: There is no harm in taking a "car loan" from the company as a benevolent loan (). The company is permitted to stipulate the mortgage of the car to the employee to prevent him from selling it except with its permission. It also has the right to demand the remaining debt from the annual bonus or housing allowance in case of its sale. It has the right to suspend the "car expenses benefit" because the employee does not own the car.
Secondly: Commercial insurance is forbidden in all its forms. However, if a person is compelled by the state to insure the license or the car, then he is permitted to insure to the extent of necessity (third-party liability insurance). Comprehensive insurance is not permissible as long as third-party liability insurance is available.
Accordingly, if obtaining the "car expenses benefit" is conditional upon comprehensive insurance, then it is not permissible for you to seek this benefit due to the impermissibility of dealing with commercial insurance. You should suffice with taking the car loan.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
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- Original fatwa ID
- 19252
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- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
- Read the full ruling
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