Fatwa

Contract with Yango

Question

Assalamualaikum warahmatullahi wabarakatuh,

Respected Mufti Sahib,

If I have five motorbikes and have a contract with Yango, and they put a condition that they want comprehensive insurance – and it is a must without which it is not feasible – this is also the same when we have trucks. The companies, before hiring the trucks, want comprehensive insurance, without which it is not possible.

Answer

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

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

In principle, comprehensive insurance is not permissible. Third party insurance is only permissible as it is a legal requirement for vehicles.

If possible, you may propose the following to Yango:

Yango shall purchase and pay for the comprehensive insurance. However, they shall then recuperate the cost of insurance from your monthly earnings. For example, if insurance costs k5000 and Yango pays out K6000 per month, for the first month, Yango shall only pay you K1000. K5000 will be theirs.  The contract should stipulate a low amount due for the first month, then escalate to the normal in the second month onwards.

And Allah Ta’āla Knows Best

Mufti Bilal Pandor

Concurred by
Mufti Muhammad Patel

Darul Iftaa Mahmudiyyah
Lusaka, Zambia

www.daruliftaazambia.com