Receiving free travel insurance when paying for plane tickets with a credit card

· 19 Dhuʻl-Hijjah 1443 AH1 min readEnglish
Business and DealingsInterest and GamblingInsurance and Medical aid

Question

If a person pays for airplane tickets with a credit card then certain banks offer free travel insurance due to the payment being made with their credit card. Will it be permissible to use this insurance?

Answer

Since this benefit is being given from the bank, and it is a conditional benefit one is receiving against a loan transaction, it will enter under the ambit of riba (interest), hence it is haraam.

And Allah Ta'ala (الله تعالى) knows best.

Answered by
Mufti Ebrahim Salejee (Isipingo Beach)
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