The Ruling on Cooperative Insurance
Machine translationRead the Arabic original
The questioner:
This questioner says: What is the ruling on cooperative insurance?
The Shaykh:
The cooperative kind that is not for investment is permissible; this is a form of cooperation. As for insurance intended for investment and trade, it is forbidden because of the excessive uncertainty (gharar), ignorance, and consuming people's wealth unjustly. You pay a small amount, and if a large liability occurs that reaches millions, the insurance company bears it from people's money. This is not permissible. Yes, has the situation ended?
The presenter:
You have five minutes.
The Shaykh:
Okay, give it to me.
The presenter:
May Allah reward you,
This questioner says: What is the ruling on cooperative insurance?
The Shaykh:
The cooperative kind that is not for investment is permissible; this is a form of cooperation. As for insurance intended for investment and trade, it is forbidden because of the excessive uncertainty (gharar), ignorance, and consuming people's wealth unjustly. You pay a small amount, and if a large liability occurs that reaches millions, the insurance company bears it from people's money. This is not permissible. Yes, has the situation ended?
The presenter:
You have five minutes.
The Shaykh:
Okay, give it to me.
The presenter:
May Allah reward you,
Source
قناة «العلامة الدكتور صالح الفوزان»، 141/120 شرح زاد المستقنع/ صالح الفوزان — youtube.com (58:20)
The Arabic text is a machine transcription of the audio recording.