Why is there no Automobile Insurance in Pakistan?

[SBD-3]

Yet another ignorant thread! Pakistan has now auto insureres running for decades.
I been using it.Name some of them 1-Adamjee 2-Alfalah 3-United Insurers 4-AGI 5-New Juiblee insurance and many small players like Habib,CSIL etc.

Please provide the actual reference of Ayat or actual Hadiath that refer to insurance and its prohibition.


Then your claims are just claims and unproven. Means you are not

Nobody has time to go to some mufti, A mufti has no value beyond being an individual you cannot back up. either prove your claims, or keep your blind and dead faith to yourself.

As for Mufti's , the term was used for LOWEST of the learnt people of Islam. Their status is that of a oath commissioner who can only verify what is written by scholars and what is not. In this case, you are not even being honest enough to bring forward whatever mufti came up with this claim.

Until you prove it, you claim is complete and utter hogwash for all members.

http://www.jamiabinoria.net/efatawa/03-21-2009/6069.htm
https://www.flickr.com/photos/dawateislami/8667693064/in/photostream

seriously???? unislamic?

Yes insurance of all types are considered as undesirable in Islamic law. Takaful,however is allowed because in Takaful the holders share both risk and reward the primary Islamic principal of business.

 

[BetterPakistan]

I was just wondering

How come there is no Auto Insurance ? In Pakistan

In Western Society , the Auto Insurance does few positive things in Economy

a) It creates Jobs in Insurance sector , Insurance advisors , customer support , claim agents etc

b) It gives protection to people in time of serious accidents , helps replace or repair your car. Helps protect you
if you kills someone in accident and you get sued in court

c) It forces people to drive safely or their Insurance rate will go up , if it is too high then you can't drive your driver license is cancelled. Car is confiscated

d) Expensive cars like BMW etc have higher rates of insurance

e) Car insurance also covers for Theft incidents


Motor Bikes have the "MOST EXPENSIVE insurance premiums due to dangers to society and danger of lethal accidents



> Police force , can better control illegal cars by checking Insurance coverage

In return may be the Insurance sector can contribute a premium into Police Force , by means of Direct funding to police department based on number of insured cars on road. Extra funding to increase police salaries


Insurance also forces , smaller numbers of cars on road


This sector could easily create Million Jobs in Pakistan


People who are caught with no insurance get their licence revoked , cars sent to recycle

It is funny becasue car insurance help identify terrorist as well, most of time the Terrorist will not have any insurance paper

Typically if there is a criminal Warrent for a person , the info is channelled from police system to the insurance company so whenever the person is stoppped at road by police and they check his profile they will know he /she is a criminal wanted

Most police officers in Western Society ask 2 things (Ownership paper + Insurance)

Becasue of the fear of hig premium (monthly payments for insurance) if they get into acccident people all drive very carefully and it all contributes to a safe road experience


Some possible Job titles

> Insurance Broker
> Insurance Manager
> Under Writing agent
> Customer Service Representative (Call Center)
> Territory Managers

Indirect Jobs:
> Mechanical work done on car repairs done with Insurance company's approval
> Appraiser who judges the damage in accident prepares estimates
> Tow Truck
> Painters who paint the cars after accident brand new
> Auctioneers who buy write off cars and sell parts of it after purchase
> Car parts company in Pakistan sells new parts for repairs less chance of dented car running around city

>Lawyers pressing claims against insurance companies for negotiation of claim

Wellness Jobs:
> Nurse and Attendant care after accident paid by insurance company
> Physio therapy consultant

Private care in hospital:
>Paid for by insurance for legitimate accidents

> Fines for insurance violators (Revenue for Police department)
> Fines for people who have insurance but can't produce copy for officer

> Lawyers who work with claims against bodily harm (if you hit a person etc break their arm or kill somoene)


> Storage facilities where violator's cars are kept for demolishing or sale for unclaimed cars after certain days


Plus: Insurance dictates you install steering wheel blockers, GPS hidden locator etc so new gadgets are always being sold to consumer



Note: Added this line later when people pointed on some places who offer auto insurance , however may be 0.05% of people would have auto insurance as it is not mandatory like it is
all over the world. i.e if you have a car you need to have insurance. The fact even I did not knew about existence shows how little developed area this is

i never knew about it great article

There is no auto insurance???? That is surprising........




Wrong.... If a person can get his license plate (or registration) he can get an insurance also....... The insurance is for the vehicle in the name of the registered owner......

Is it being suggested that automobiles are not insured in Pakistan ?

@AZADPAKISTAN2009

What happens when you bang or the vehicle is stolen? Or a tree falls on it?

it is nothing more than a big joke.

There are many big insurance companies in Pakistan offering lucrative packages for automobiles.
Even my own car was insured before and when it got stolen than I received money from the insurance provider.
@AZADPAKISTAN2009 You really need to search before posting fellow

 

[JohnyD]

Its third party liability insurance that is mandatory. Which is protection for the vehicle& person you do the damage against.
You can skip insuring your car no issues.
!

you are so wrong...I m sure you dont own a car or u dont live in metros!

 

[Jak101]

you are so wrong...I m sure you dont own a car or u dont live in metros!

Well my points are still valid

a) Auto insurance is not mandatory (Nation Wide)
b) May be 0.01 % people carry this benefit , many don't even know it exists
c) Not many even know such items are needed and it's importance in society
d) Nationwide Insurance data base is not connected with traffic police system

Life insurance is not controversial , there are advertisement all over Pakistani Newspaper / Channels

Pakistani Banking sector was quite Big in 60's and 70's so such commercials were common in 80's and infact even now many people have life insurance

Auto Insurance did not catch on as much as banks became weaker after 80's and there was lack of Government governance to introduce mandatory Car insurance nation wide

There was boost in cars on road really after 80's same with Motor cycles so the policy making was not at same speed as introduction of cars and motor bikes on road.

@AZADPAKISTAN2009 I am not sure if you live in Pakistan, because if you do or have been there you would know that insurance is mandatory in Pakistan. Though most of the people only get third party insurance and not the comprehensive one.

You must at least do SOME research before posting such opinions!!

 

[bazil]

One of the main concepts behind Islamic Finance is that of Risk and reward sharing. Takaful is the shariah compliant alternative to insurance. I don't remember exactly how it works so you be better off by Googling. from what I remember, On the surface the Takaful looks like insurance but there are differences in the way the money is managed with regular insurance that make it a halal option.

 

[Indika]

you are so wrong...I m sure you dont own a car or u dont live in metros!

I do and plunk 16k useless money every year bcos family does not agree with it.

 

[Azad-Kashmiri]

or keep your blind and dead faith to yourself.

It is you who is deaf, dumb, blind and follows a man who died on the lavatory! Ashroothal aqd al-tejara are minor issues in comparison to batil aqeedah; lena antha kafir muthashadid!

As for Mufti's , the term was used for LOWEST of the learnt people of Islam. Their status is that of a oath commissioner who can only verify what is written by scholars and what is not. In this case, you are not even being honest enough to bring forward whatever mufti came up with this claim.

Maybe in your qadiyani world. The word 'MUFTI' is Arabic, from the root word 'Afta'. Go and read up what it means and don't embarrass yourself any further.

 

[Pandora]

Australia doesn't have a compulsory Car insurance as wwell. Only reason people here opt for insurance is because people have to pay hefty sums in case of an accident.

 

[SQ8]

Yet another ignorant thread! Pakistan has now auto insureres running for decades.
I been using it.Name some of them 1-Adamjee 2-Alfalah 3-United Insurers 4-AGI 5-New Juiblee insurance and many small players like Habib,CSIL etc.


http://www.jamiabinoria.net/efatawa/03-21-2009/6069.htm
https://www.flickr.com/photos/dawateislami/8667693064/in/photostream


Yes insurance of all types are considered as undesirable in Islamic law. Takaful,however is allowed because in Takaful the holders share both risk and reward the primary Islamic principal of business.

Both Dawat-e-Islami and Jama e binoria are untrustworthy in terms of their Fatwa's. If one gives a fatwa; they have to cite the ayat's and hadiath to support it. They are basing their entire "fatwa" on the fact that some sort of interest is being put on it? Do they even understand how insurance works?


Wait, that was stupid question to ask regarding the metric pass people at these binorias and Madressas.

Idiots do not realise that their entire donation process involves money coming through a financial system that is built entirely on credit and interest.

It is you who is deaf, dumb, blind and follows a man who died on the lavatory! Ashroothal aqd al-tejara are minor issues in comparison to batil aqeedah; lena antha kafir muthashadid!



Maybe in your qadiyani world. The word 'MUFTI' is Arabic, from the root word 'Afta'. Go and read up what it means and don't embarrass yourself any further.

You are a total idiot who thinks that everyone who disagrees with him is a Qadiyani. I pray to keep women and children safe from you as you might be next one blowing himself up.

 

[SBD-3]

Both Dawat-e-Islami and Jama e binoria are untrustworthy in terms of their Fatwa's. If one gives a fatwa; they have to cite the ayat's and hadiath to support it. They are basing their entire "fatwa" on the fact that some sort of interest is being put on it? Do they even understand how insurance works?


Wait, that was stupid question to ask regarding the metric pass people at these binorias and Madressas.

Idiots do not realise that their entire donation process involves money coming through a financial system that is built entirely on credit and interest.

A-You do realize that matric is conventional education , completely unrelated to religious education.
B-Their donations come from all sorts of walks and all sorts of earning professions.
C-I think you didn't read them properly the dawat fatwa contained ayats.
Islamic principal of business or any financial transactions is simple, if you wana enjoy gain, you have to share loss as well. In concentioanl insurance the loss is solely born by the isurer while the gains of investment of premimun are shared by both.
In Takaful however , the structure allows both policy holder and insurere to share both gains and losses.

 

[v9s]

Go and study Islam! I'm not here to teach basics of Islam especially those who claim to be Muslims. If you read my posts, i only make an exception to non-Muslims and provide sources and evidences.

It's your duty as a muslim to provide me the source of your claims. I need to know where you're coming from before I can comment on it.

Islamic principal of business or any financial transactions is simple, if you wana enjoy gain, you have to share loss as well.

Often misunderstood as the case.

Islamic principal of financial transactions cannot be summed down to "Share of gains and losses." There's much more to it than that and can be simplified really easily:

1. Equitable distribution of wealth
2. Efficiency (No wastage)
3. Avoiding inconvenience
4. Compliance of Quran

If it was simply "Share of gains and losses," futures trading would be halal.

 

[SBD-3]

It's your duty as a muslim to provide me the source of your claims. I need to know where you're coming from before I can comment on it.



Often misunderstood as the case.

Islamic principal of financial transactions cannot be summed down to "Share of gains and losses." There's much more to it than that and can be simplified really easily:

1. Equitable distribution of wealth
2. Efficiency (No wastage)
3. Avoiding inconvenience
4. Compliance of Quran

If it was simply "Share of gains and losses," futures trading would be halal.

Futures trading is another idea having related to fixating the commodity specifcation and delivering the exact description on delivery date in addition to basic underlying principal.

 

[fitpOsitive]

There is no auto insurance???? That is surprising........




Wrong.... If a person can get his license plate (or registration) he can get an insurance also....... The insurance is for the vehicle in the name of the registered owner......

You are right. Mostly terrorist use stolen cars.

As an actuary, the driving habits of Pakistanis would generate more losses than premiums in a very short amount of time. There is the also the problem of poor enforcement of traffic laws, and safety procedures. Not enforcing proper traffic regulations and laws also results in illegal vehicles ending up on the road that would drive up an unnecessary cost of claim.

It has more to do with state bank policies rather than poor driving habits. The reason is behind paypal, like many others, not working in Pakistan.

 

[v9s]

Futures trading is another idea having related to fixating the commodity specifcation and delivering the exact description on delivery date in addition to basic underlying principal.

Bro...i've worked in a commodity exchange lol

 

[AZADPAKISTAN2009]

Insurance lag nahi rahi

Not sure any company would insure this behavior

Ye insured rider nahi lag raha

Ye third party libaility hai ya first ?