Insurance

Question

When a person has an accident with another car, the insurance company of the other car owner pays a person out fully. The money that they pay is the market value of the car and not the actual value. For example I recently had an accident, the insurance company of the other person paid me out 2100.00 whereas I bought my car for the price of ?1600.00. So would the extra money received in this case be jaa'iz (permissible) or haraam? Also I have heard that you cannot claim more than the amount you have paid to the insurance company. In case if the other person is not insured then my own company will pay me out. Would this money also be jaaiz?

zha654 · Answer

If the car of a person is destroyed by a wrongful act of another person the owner of the car is entitled to receive the full market value of the car and not only the original cost of the car, but this market price is the liability of the person whose wrongful act caused the accident. Therefore, it is advisable that the aggrieved person receives the compensation from the owner of the car and not from the insurance company. But if it is not possible for some legal procedures in a country and the amount of compensation is paid by the insurance company directly to the aggrieved person and not to the insured person, the aggrieved person can also avail of this compensation.