Pls advice whether insurance in silam is allowed. such as life policy, insuring goods against fire,floods and other calamaties. according quran and hadees allah says yr prperty will be safeguarded by paying the zakath , its the insurance. or u can insure with big insurance companies like lloyds or any other
Mu' meneen Brothers and Sisters,
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One of our brothers/sisters has asked this question:
pls advice whether insurance in silam is allowed. such as life policy, insuring goods against fire,floods and other calamaties. according quran and hadees allah says yr prperty will be safeguarded by paying the zakath , its the insurance. or u can insure with big insurance companies like lloyds or any other,
may allah bless you
yours brother in islam
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It is not the concept of insurance per se which is illegal in Islam, but rather what is haraam and forbidden in Islam is the interest-based aspect which is utilized by the conventional insurance companies during their transactions when conducting the insurance business.
Almost all the conventional insurance companies transact their business based on interest, and it is this interest aspect which is deemed absolutely haraam in Islam. But Alhamdolillah, today there are several Islamic Insurance Institutions which provide insurance cover on various aspects based on Shariah principles, and there is absolutely no harm in seeking insurance from such interest-free institutions.
The absolute majority of the scholars are of the opinion that life-insurance is impermissible because unlike other calamities and eventualities which may or may not effect man, death is one thing that is Decreed for every son of Adam by their Lord and Creator, Allah Subhanah.
Whatever written of Truth and benefit is only due to Allahs Assistance and Guidance, and whatever of error is of me. Allah Alone Knows Best and He is the Only Source of Strength.
Your brother and well wisher in Islam,