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Insuring A Client’s Payments
Is it lawful for the bank to seek coverage from an insurance company for the payment of a client’s installments within the limits of actual losses incurred as a result of the client’s inability to make scheduled payments?
Insurance for payments owed by a client is a form of suretyship or kafalah for debt. In this case the surety is the insurance company and since it is given in return for an insurance premium it is unlawful to seek, as suretyship may only be given without charge.

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