Is the driver liable to pay compensation if he causes an accident and would the compensation paid by the insurance company be halal for the injured party?

In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

1. Yes, the driver will be responsible for paying the compensation if he was at fault. [i] [ii] [iii] [iv]

2. Insurance being haram, will only be excused to the extent required by the law of each country. In principle, the person whose negligence resulted in the accident is responsible for all damages and should ideally pay them. However, if his insurance company pays on his behalf, this will absolve the driver of his responsibility. [v]

3. Yes, the compensation paid by the negligent driver's insurance company to the injured will be halal to accept as long as the claim is rightful and does not involve the reporting of fraudulent claims. [vi]

4. Yes, it will be permissible to assist in getting the injured or the heirs of the deceased their rightful claim from the insurance company with the condition that fraudulent claims are not made.

And Allah Ta’āla Knows Best

Sohail ibn Arif,
Student Darul Iftaa
Chicago, USA

Checked and Approved by,
Mufti Ebrahim Desai.

Clarification

The Darul Iftaa has received queries regarding Mufti Ebrahim Desai Saheb’s teaching and affiliation with Madrassah In’aamiyya, Camperdown. The confusion is probably due to the previous Fatawaa and Google searches of Mufti Ebrahim Desai Saheb issued under the name of Darul Iftaa, Madrassah In’aamiyyah, Camperdown.

Mufti Ebrahim Desai Saheb has resigned from Madrassah In’aamiyya two years ago and has no affiliation with Madrassah In’aamiyya, Camperdown.

Mufti Saheb has established the Darul Iftaa in Durban that facilitates for post-Ulama courses and training Mufti’s. He teaches Hadeeth at Darul Uloom Nu’maniyyah.

Email: darululoomnumaniyyah@gmail.com or arkhanar@telkomsa.net