Peace be upon you.

My father was killed nine years ago when a car hit him while he was crossing the street.

As is well-known in Egypt, there is a system of mandatory insurance taken out on the driver's license (or maybe it's the car's registration…I don't remember).

There were two options put before us:

-          to sue the driver who caused the accident to obtain compensation or the blood money (diyah).

-          or to sue the insurance company (as a representative of the driver) to get compensation or the blood money.

In either case, the insurance company would be the one to pay on behalf of the driver. The only difference in suing the insurance company directly is that it would get faster results and there would be less procedural obstacles (not to mention that it would be easier for the lawyer).

However, I told my grandfather (the executor) to tell the lawyer to sue the driver and not the insurance company (based on a fatwa I got when I asked a scholar).

We were therefore surprised when the case was over and compensation was paid that the lawyer had sued the insurance company directly and not the driver (I don't know what the reason for that was).

What is the verdict of the money in this case since we have no way to sue them again or to seek any other compensation?

Commercial insurance is a type of prohibited contract and it is forbidden in all forms. It is not permissible for anyone to get involved in it due to the gharar (risk) and riba (interest) it contains. However, the prohibition of getting involved in insurance does not mean that it is forbidden to take one's rights from an insurance company if they have accepted the liability to pay on behalf of someone who has caused an accident.

Based on that, if a member of your family was killed unintentionally or was the victim of an accident, there would be nothing to prevent you from taking the diyah (blood money) from any party (to whom those who rightfully deserve it are referred, whether that is through the one responsible for the death or by court action) whether from the insurance company or anyone else, because those who receive compensation are within their rights, and they are not responsible for whether or not it is permissible for the other party to deal with the insurance company.

And Allah Almighty is more Exalted and more Knowledgeable.