The Ruling on Life and Property Insurance
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Question: What is the ruling on insurance, whether it is for life or for property?
Answer: Life and property insurance is forbidden; it is not permissible because it contains excessive uncertainty in a contract and usury or interest. Allah (Glorified and Exalted is He) has forbidden all interest-based transactions and transactions containing excessive uncertainty in a contract, as a mercy to the Muslim community and to protect it from what harms it. Allah (Mighty and Majestic) said: [Surat al-Baqarah:275]. It is authentically reported from the Messenger of Allah (peace and blessings be upon him) that he prohibited the sale involving excessive uncertainty in a contract. And success is from Allah.
Answer: Life and property insurance is forbidden; it is not permissible because it contains excessive uncertainty in a contract and usury or interest. Allah (Glorified and Exalted is He) has forbidden all interest-based transactions and transactions containing excessive uncertainty in a contract, as a mercy to the Muslim community and to protect it from what harms it. Allah (Mighty and Majestic) said:
But Allah has permitted trade and has forbidden interest
وَأَحَلَّ اللّهُ الْبَيْعَ وَحَرَّمَ الرِّبَا
Source
binbaz.org.sa
The Arabic text is copied verbatim from the original source, without any edits.