Being forced to take out insurance when buying a car on installments
Question
There is car company and they are selling their cars in the following manner:
I pay a certain amount of the total and they give me the car but they don't transfer the car to my name. Then, after I pay the 9 installments, the car will come into my name. In the meanwhile, they ask me to take an insurance policy for 9 months to cover me from all risks in case something happens to the car. Is this type of deal correct?
Answer
If the selling price is set from the beginning and a sale takes place without interest being added in the case of late payments on installments (and there are no invalid clauses in the contract), then it is permissible. However, forcing the customer to take out insurance is not permissible.
And Allah Ta'ala (الله تعالى) knows best.
- Answered by
- Mufti Zakaria Makada
- Checked & approved by
- Mufti Ebrahim Salejee (Isipingo Beach)
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