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Entitlement To Policy Benefits

Is it permissible for a person to receive benefits for the value of his car that has been destroyed in an accident even though he is in the process of making some remaining payments for the price of the car?

It is lawful for the person to receive benefits for the value of the destroyed car since ownership was transferred to him without his putting up any collateral.

However, in the event that the person who purchased the car previously granted the bank the right to reserve any amount coming into its possession, then the amount of benefit transferred from the Takaful company to the bank falls under the ruling of a guarantee in which the remaining payments are to be made on time unless a new agreement is concluded.

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