The Ruling on Commercial and Cooperative Insurance
Machine translationRead the Arabic original
The questioner:
Sami asks, saying: Is insurance permissible? We ask for a detailed explanation.
The Shaykh:
Insurance is not permissible because it involves consuming people's wealth unjustly, and because it contains riba (usury or interest).
The questioner:
May you be safe.
The Shaykh:
It also contains gambling and great harms, so it is not part of the Muslim system. It was brought to us and promoted by some ignorant people. Commercial insurance aims at commercial insurance, but cooperative insurance that does not aim at investment, but rather aims at helping those in need, is permissible. Cooperative insurance that aims at helping those in need, where only the fee returns to you and no investment returns to you from it, is permissible. Yes.
Sami asks, saying: Is insurance permissible? We ask for a detailed explanation.
The Shaykh:
Insurance is not permissible because it involves consuming people's wealth unjustly, and because it contains riba (usury or interest).
The questioner:
May you be safe.
The Shaykh:
It also contains gambling and great harms, so it is not part of the Muslim system. It was brought to us and promoted by some ignorant people. Commercial insurance aims at commercial insurance, but cooperative insurance that does not aim at investment, but rather aims at helping those in need, is permissible. Cooperative insurance that aims at helping those in need, where only the fee returns to you and no investment returns to you from it, is permissible. Yes.
Source
75-لقاءات مع الشيخ صالح الفوزان - 09-5-2-1433 — archive.org (55:57)
The Arabic text is a machine transcription of the audio recording.