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Is it permissible to receive a sum of accident compensation with legally stipulated interest, and what is the ruling on disposing of this interest by making it a gift to relatives to help them, and is it permissible to calculate the lawyer's fees only from the original compensation amount?

1 min readAlso available in العربية

Whoever is involved in a car accident and suffers damage because of it has the right to claim compensation from the at-fault party or their insurance company. However, they are not permitted to claim interest on this money, as it is usury (riba), and it must be returned to the insurance company.

The damaged party has the right to claim the cost of repairing their car, in addition to the difference in value between the car before the accident and after its repair. If the damage is to their body, the compensation is determined based on the type of injury. It is also permissible to claim litigation and legal fees if these costs are customary.

Therefore, you must only claim your legitimate Islamic right from the compensation amount, which includes the cost of repairing the damage, the price differences, and the litigation and legal fees. If the awarded amount exceeds your legitimate right, the excess must be returned to the insurance company unless they permit otherwise.

Summarized from the full answer at Ftawy · reviewed Sep 2, 2026

Read the full answer on Ftawy