The questioner asks about the ruling on insurance in Islam and its forms?
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The questioner : What is the ruling on insurance in Islam and its forms?
The Shaykh : Insurance is among the contracts of excessive uncertainty in a contract, and every contract that includes excessive uncertainty in a contract is invalid, due to the hadith of Abu Hurayrah (may Allah be pleased with him) that the Prophet (peace and blessings be upon him)Sunan Abi Dawud 3376Sahih (Al-Albani) And because excessive uncertainty in a contract is a form of gambling, and Allah the Exalted has forbidden it in His Book, saying: [Al-Ma'idah 5:90] The reason it is considered a form of gambling is that the insured pays the insurance premium, let us say five thousand per year, and then an accident may occur that covers more than what he paid, twice or three times, or perhaps no accident occurs at all, or perhaps an accident occurs that is less than what he paid. In reality, it is a contract of excessive uncertainty in a contract and risk, and it is not permissible. So the insured should fear Allah Mighty and Majestic and avoid these contracts of excessive uncertainty in a contract that the capitalists introduced in order to exploit people's money.
The questioner : May Allah reward you with good.
The Shaykh : Insurance is among the contracts of excessive uncertainty in a contract, and every contract that includes excessive uncertainty in a contract is invalid, due to the hadith of Abu Hurayrah (may Allah be pleased with him) that the Prophet (peace and blessings be upon him)
forbade the type of sale which involves risk (or uncertainty)
نهى عن بيع الغررO you who have believed, indeed, intoxicants, gambling, [sacrificing on] stone alters [to other than Allah], and divining arrows are but defilement from the work of Satan, so avoid it that you may be successful.
يَا أَيُّهَا الَّذِينَ آمَنُوا إِنَّمَا الْخَمْرُ وَالْمَيْسِرُ وَالأَنصَابُ وَالأَزْلامُ رِجْسٌ مِنْ عَمَلِ الشَّيْطَانِ فَاجْتَنِبُوهُ لَعَلَّكُمْ تُفْلِحُونَThe questioner : May Allah reward you with good.