Receiving free travel insurance when paying for plane tickets with a credit card

Q: If a person pays for airplane tickets with a credit card then certain banks offer free travel insurance due to the payment being made with their credit card. Will it be permissible to use this insurance?

A: Since this benefit is being given from the bank, and it is a conditional benefit one is receiving against a loan transaction, it will enter under the ambit of riba (interest), hence it is haraam.

And Allah Ta'ala (الله تعالى) knows best.

 

Answered by:

Mufti Ebrahim Salejee (Isipingo Beach)