Question
When buying a vehicle through Al-Baraka Islamic Bank, they insist that we take out insurance. Is this permissible. We have all along understood that insurance is haraam. How can an Islamic bank stipulate that a Muslim client takes out insurance?
Answer
Al-Baraka and similar other Muslim banks are far from Islamic. They generally operate in the same way as the non-Muslim banks. People are confused and misled with the many Islamic terms they use to describe their transactions and deals. The fact that they deal in interest and impose haraam riba insurance on Muslim clients testify to the hollowness of their claims. Insurance is haraam. It is haraam for a Muslim bank to stipulate insurance.
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- themajlis.co.za
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- themajlis.co.za Q&A