[abomokhtar]

Can insurance be Islamic?
Answer
Since insurance in its various forms is a novel transaction which the Shari‘a [Islamic law] has not provided specific evidence concerning their legality or lack thereof – in this respect it is like bank transactions – engaging in it falls under the judgment of scholars and their research deduced from the general meaning of textual evidence, such as God Most High saying,
“Assist one another in piety and being mindful of God, but do not assist one another in sin and enmity. Be mindful of God; indeed, God punishes severely” [5:2].
The Messenger of God (peace and blessings be upon him) said: “The example of believers in their love, sympathy, and compassion for one another is similar to the example of a single body: when a single part complains it calls upon the others vigilance and for defense”. And there are numerous other texts on this topic. Scholars have two opinions on the permissibility of Insurance:
- One group of scholars considers it an unlawful transaction because of its inherent risk, gambling, betting, and unlawful increase [riba].
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