Insurance in Islam

8-10-2002 | IslamWeb

Question:

In reference to Fatwa regarding Insurance.1) We have health insurance in our company for all the employees, can I use this insurance or not?2) It not allowed by the law in any country to have a car without insurance, so in this case we have to get insurance for the car. Shall we do it or not?3) What you think about Islamic Insurance companies?

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Answer:

Praise be to Allah, the Lord of the World; and may His blessings and peace be upon our Prophet Muhammad and upon all his Family and Companions.

As for "Islamic Insurance", it becomes common to find what is called "Co-operative Insurance" as a substitute for commercial insurance or any other prohibited form of insurance.
Here, we state that the co-operative insurance is legal, if it is governed by Sharia limitations and rules, since it is a form of pure donation from all parties. This kind of co-operation comes under the Qur'anic verse: {… Help you one another in AlBirr and AtTaqwa (virtue, righteousness and piety); but do not help one another in sin and transgression. …} [5: 2].
Also, it is known that Islamic insurance companies are supervised by a committee of Sharia censorship/supervision that supervises all activities of these companies. In simple words, this committee directs and runs all activities according to Sharia.
However, we cannot give a candid opinion that so and so insurance company adheres to the teachings of Islam unless we study its prevailing by laws.
We ask Allah to grant you success so that you do what pleases Him.
Allah knows best.