How is the insurance on the asset calculated in a Murabaha transaction?

When insuring an asset, it's crucial to distinguish between the Murabaha debt and the insurance/Takaful coverage for the asset.

Steps

1. A loss on the asset does not automatically erase the debt.

2. Notify the bank and insurance company immediately and obtain a statement detailing the compensation amount, how it will be used to settle the balance, and any remaining obligations.

Source

• AAOIFI — Sharia Standard 8: Murabahah