Is Commercial Insurance Permissible in Islam? Understanding the Ruling on House, Car, and Medical Insurance
Question: Is it permissible to have insurance for a house, car, medical, etc., where we pay a fixed amount every month and they compensate us for any loss?
Answer: Any type of commercial insurance, whether it is for a house, car, medical, or any other type, is not permissible. All forms of commercial insurance are based on interest (riba), gambling (maysir), deception, and fraud. Just looking at one aspect of it reveals its prohibition. Insurance is a type of trade, and it is an uncertain trade, while Islam prohibits trading in uncertain things. Abu Huraira (may Allah be pleased with him) reported that the Prophet (peace be upon him) forbade the sale of uncertainty (gharar) and pebble sales (bay’ al-hasat) (Sunan Ibn Majah: 2194). Therefore, it is not permissible for a Muslim to take out any type of insurance without a valid reason.
Sheikh Maqbool Ahmed Salafi
Jeddah Dawah Center, Hayy Al-Salamah – Saudi Arabia
Sheikh Maqbool Ahmed Salafi