Hawkesbay Investment Corporation Limited
The business is in conformity with standards and in line with normal corporate ethics. Based on the loans agreement drafted by our client and we guarantee that our client will only enter into a legitimate business transaction as proposed with the funds.
Legal & General Insurance company hereby guarantee the safety of your investment of ($ 1,000,000.00) with our client and shall indemnify you on demand the total value of said amount against all liabilities, losses, costs incurred and expenses within 6 months or one year.
This letter of Indemnity is also subject to the terms and condition contained in the general agreement. In case of any conflict the terms therein shall prevail.
A: There are actually two contracts mentioned in the question; a loan contract and an insurance contract. No details have been supplied on the loan contract and so I am unable to comment upon the loan contract per se. However, it is not permissible to enter into the insurance contract as that does not conform to the principles of sharia. If the insurance contract is a requirement for the loan contract, it is not permitted to enter in to the loan contract even if the loan contract was to be permissible of itself.
And Allah knows best.
Mufti Mohammed Zubair Butt