What is the ruling on commercial insurance in Islam, for instance health insurance, life insurance, and property insurance?
Scholars disagree regarding insurance. The majority of them forbid it in its commercial form.
The Islamic Law Council in Saudi Arabia has issued an official ruling forbidding insurance in consideration of its reliance on uncertainty and risk. They argue that Islamic Law prohibits business transactions that include a great deal of uncertainty. There are many authentic hadîth in this regard. For instance, Abû Hurayrah relates that Allah’s Messenger (peace be upon him) forbade business transactions determined by the throw of a stone and business transactions involving uncertainty. [Sahîh Muslim]
Please note, however, that some prominent and distinguished scholars accept insurance as lawful, such as Mustafâ al-Zarqâ’ and Yûsuf al-Qardâwî. Sheikh `Abd Allah b. Mâni` holds a similar opinion to theirs in some aspects of health insurance.
There are several books about insurance. One of the books that considers it lawful is Insurance Systems and the Legal Opinion Thereupon by Sheikh Mustafâ al-Zarqâ’ .
On the other hand, there are many articles issued by the scholars who participated in the Islamic Law Week in Damascus, forbidding insurance.
Source: Islam Today
-- Al Arabiya Digital