Insurance in Islam: Is it Halal or Haram

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July 10, 2010 by SJ · 23 Comments

Insurance in Islam is a complicated debate. But most of the scholars in Islam give diversified opinion of this issue but it is a unanimous Fatwa of Muslim scholars that if Insurance does not base of interest based system than it is not illegitimate in Islam. Read the complete detail about the Insurance in Islam whether it is legitimate or illegitimate (Haram or Halal).	[ad#center-add]

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By SJ

Hi, my name is SJ, a full time blogger working in a web development company and doing blogging since 2007.

sham

AOA,
you write a good article on insurance. Its also a difficcult debate as other islamic banking concepts. First all isurance companies either is it running by muslims or by the non muslims based on the non shariat rule.
Its good for muslims that keep takafal and simple islamic kafalat separate then the insurance companies. Islamic Concepts ruleover the insurance or jewish concepts . it didnt come under the rule of your beema companies.
In simple words insurance is haram simply.
thankyou
Talha

islam me insurance najaiz ha agar jaiz ha to darululoom ya kisi mustanid deeni idary ka fatwa sath lagain
maira

i agreed wth shaam nd talha dat insurance is haram in islam.mgr aj kal hr banda islam k asulu k against chal rha he which is really bad for us.Quran teachs every thng if we follow.thx.
Dr Gulam Mohammad Chinchwalker (Qadri)

As salaam alaikum

In the light of riots in Mumbai, Gujarat and other places serious thought was taken by Ulemas and after studing Insurance there was mixed opinion and debatable condiotioon had arises . Allah had chosen ease for people he know man are made weak and are in haste and he is merciful to his creature he has not made human being to suffer but to test . Haram and halal varies from conditions . In Islam to take Interest is haram and serious sin , gambling are forbidden (Riba, Garar) .

In principle the Insurance is made to help mankind but it principle does not violate the law of Islam . There are many new policies which take care of the need of islam it is free from Interest the amount is invested only in good business and the principle of loss and profit exist , it is a misconcept may that Insurance is gamgling . In fact in many countries Insurance is conpulsory many a many a car, factory , health are insure . In light of riot the Ulema Academy had organised talk a talk in it annual gathering at hyderabad even Ulema council though of considering insurance for riot affected people.

I request please go into further details and do research even we can have Insurance policy design for us has per our Islam law. Please keep the door of debate open and then guide us . Think of ummaya success in this world and hereafter both
zubair hussain

Yes it is right if the investment is in buisness and profit is earning from the buisness then it is not only ok but also necessary for all muslims, because in all the world people are getting advanteges from this economics invention. It is our big bad luck that our uneducated maolana sahib give fatwaz against it without any explaination.
MUHAMMAD IRSHAD

Assalam o Aliakum Dear Muslims Brother
yes it is true that takaful insurance is halal .becouse there is a big proof from our Holy prophet Hazrat Muhammad (SAWW).When the rich marchan Harzrat Khadija give the thing (Maal )to our prophet annd our prophet sell it into the diffrent country . but there is a share of our the prophet SAWW and the Khadija is earn money at home. by this way in islam the takaful is halal .HOPE THAT IS THE ANSWAR BUT SHORT
WASIM

Yes it is right if the investment is in buisness and profit is earning from the buisness then it is not only ok but also necessary for all muslims, because in all the world people are getting advanteges from this economics invention. It is our big bad luck that our uneducated maolana sahib give fatwaz against it without any explaination.
kashif iqbal

islam me insuranse haram hai islam me to insurance ka koi consept he nai hai yeh insurance ka lafz nikla kahan se hai mai is insurance ko nai manta bbbssssssssssss
samina

i shall not believe on only first person ….i shall ask from another scholar ”to verify above discussion
http://www.licindia.com Rahul LIC Surat SSE Dmkt

Assalam o Aliakum Dear Muslims Brother,

I am sharing my views not as LICian but as on Humanitarian ground. In LIC there is a policy named As
Anmol Jeevan-I
Amulya Jeevan-I
These two plans are pure risk plan. No maturity benefit will paid to the life assured. In the condition of life assured death the insured amt cheque will be given to the nominee of the family or he appoint nominee of his policy. If he / she appoint some Masjid or construction of masjid amt goes to that for as donation or charity work. If he / she nominate his / her family member amt than goes to family members so that their economic status not down. at least they survive and restart their work in any other way. so if somebody wants to take more knowledge about it please call me on 9726155598. I am living in surat and try to contact Maulvi shaeb to make understand them about this, If a person reading this and live in surat please help me to express my view to the common man who is really needy in present circumstances of our country
Muhammad Tahir Qazi

A conman man who want to earn some thing extra (halal) for his family is very much disturbed and confused between this debate whether insurance is halal or haram. If some one has clear understanding about this please share this to all of us.Thanks
syed sameer

I really dont know insurance is haram or halal its a long debate, when ulmas have diffrent opinion, so i go with not opting for insurance, because if it is haram and i do i b punished, and if it is halal i not do then i am not answerable to Allah.

and one more thing i would like to mention here that moulanas are not uneducated, they have that education which other dont have, so please mr zubair & waseem respect ulmas after all they will save u from difficulties in todays scenario.

Thanks
Syed Yasir Shabbir Rizvi

Assalam O Alaikum
I deeply researched and studied about Conventional Insurance and Takaful.I have come to know that Takaful is 100% Halal in Islam and Convetional Insurance is Haram.
We must have to follow and obey Allah’s orders first,then our Holy Prophet Hazrat Muhammad(Sallalla Ho Alehe Wa Ale Hi Wasallam),and if we can’t find any solution of any problem in Quran and Hadith,then we have to follow Ulma of current times.And almost 100% of Ulmas are agreed that Takaful is halal in Shariah and Convetional Insurance is strongly prohibited in islam.So we have to follow Muftis and Ulemas.Because it’s their responsibility to guide the Ummah in the right way and we have to follow them.So don’t get any confusion about Takaful and invest in Takaful Companies and take their Policies with full confident.Especially PAK QATAR FAMILY TAKAFUL. Thank you, Allah Hafiz
Dildar hussain

Yes, I studied the Takaful system myself and asked many of scolars.So i am satisfied and got a plan in a company named Dawood Family Takaful.Which is providing best benefits which i have ever heard.
Thanks & Regards,
ALLAH Hafiz
http://nil MUHAMMAD USMAN

mera name muhammad usman hai aur main sindh ghotki main rehta hoon …………main ye chahata hoon ke ap jitne bhi ehle hadith ke ulma-e-karam ki vedio web site dain main apke reply ka wait karon ga aur mera number 03083114477 hai ap sms ke zariye bhi send kar saktain hain ok thanks MUHAMMAD USMAN FROM GHOTKI [SINDH]
Zahid Hussain Chughtai

I read the above noted para. I think that Insurance is not Halal in Islam. Some people give the reference of Ala’Hazrat Imam Ahmad Raza Khan’s Book named Qanoon-e-Shariat, that the insurance is Halal in Islam. But some Ulma say that Insurance is Halal only when a Muslim lives in Non-Muslim state and have no other way to save his/her money then he/she can buy a Insurance policy. But if he/she lives in Muslim state and has other ways to save his money then the insurance is not Halal for any Muslim. I was a worker of a Insurance company, I research about it and met many Ulmas and finally conclude that insurance is not Halal in Muslim State. Further ALLAH and His Prophet Alai-hi-Salam Knows the Best.
inam afridi

yup its right insurance are not allowed in islam
http://www.urdumania.com/urdu-topics/islam/insurance-in-islam-is-it-halal-or-haram.php
bilal basheer

yes life insurance is halal
ali

Insurance being gambling, betting, going against will of allah is ansurd. In gambling you create a risk from nothing in order o make a benefit if you numbers turnup. This leads to addiction and is haram. You buy insurance to safegauard an asset to its original state if a CALAMITY happens. With insurance you buy piece of mind. this peice of mind is the premium you pay. The most substantial argument with insurance is the issue of gharar/uncertainty from the insurer. When you look at a pool of people with similar needs the the unceertainty is minimal as the insurance company can make a scientific estimate as to the chance of this happening. I RECOMMENT YOU GO TO MONZER@KAHF.COM who is ia islamic financial scholar who justifies insurance with sound argument. The great Mustapa Zarqa also allowed all types of insurance as permissable after a lenthy research resulting in a book in arabic. I think scholars and alims are too quick to make judgments on things introduced by erstern society. If i die within my policy i know that my family will have the mortgage on the house paid for and will have funds to live a decent life. Is that not what Allah wanted us to do – to look after my family. Insurance is an exchance contract so what they do with the money i paid is irrelevent. Just as you and a million ppl buying a loaf of bread the shop will put that money in the bank and buy more bread with it. you are buying things which are front interest money. If the contract of insurance does not involve interest then all insurance is halal. even zakir naik says something similar.
Ammar_28lucky

hi…gyiz…. ithnk insurnc is halal
Snaveedakhter

Assalam o Alaikum Brothers and Sisters,
By the grace of Allah Almighty I have researched and after getting 100% satisfaction I am associated with a Well Known Takaful Organization.
If some one has any sort of ambiguities or reservations regarding the issue of HALAL or HARAM you can contact me any time on my cell. It would be my pleasure to help you in clearing your mind and vision about Takaful.
My No. is : 0343-2470681
Muhammad Shahbaz

you are wrong brother because you have not complete knowledge. sory to say brother
http://www.facebook.com/kashif.qadri.71 Kashif Qadri

sir takaful k baray may janna hai ya takaful may participant karna hai ap mujh se rabta karay syed muhammad kashif qadri from pakqatar may consultant hoon pakqatar ka my id kashifpakqatar@yahoo.com cell number03452355418