insurance is allowed in islam
insurance is allowed in islam here are mixed opinions on this in Islam. If I generalize then orthodox Islam is against and contemporary thinking allows traditional insurance including health insurance.
What is but virtually universally thought-about allowed is takaful which may be loosely thought-about mutual cooperative insurance.
Personally, I believe there is no harm as:
Overall it’s more beneficial
Any unislamic underlying investments that the corporate would possibly build is comparable to investments that the majority ancient corporations would build anyway as a part of their investment strategy.
Insurance in Arabic (& Urdu) is Ta’wun which accurately means that cooperation. So insurance is considered cooperation and actually its a major social contribution to society. How? Check the example below.
Let us suppose five friends got along and planned to contribute Rs ten thousand each year and unbroken that quantity in an exceedingly locker and set to use that quantity once any of the 5 friends is in danger or needs money. They set to offer entire Rs 50000/- to him/her.
fantastic five individuals serving to one another with none discrimination of faith, gender, caste or creed? (This is the basic funda of insurance)}
This is fully HALAL and this can be however insurance works. Many people contribute and facilitate somebody to use the complete quantity or a part of it in would like of crisis.
Now, the question is once will it become Haram? (Illegal)
Let us take the same example from the above scenario.
INSURANCE IS ALLOWED IN ISLAM
Now at the end of the year those 5 friends still have Rs50000/- in their account so one of them decided to invest that Rs50000/- somewhere.
One friend suggested to buy Gold
One friend suggested to Buy land
One friend instructed to stay it in mounted deposit and earn interest
One suggested to start a wine shop and
One suggested to Gamble
The first one is still Halal
The second one is still halal
Third, fourth and fifth is not.
So that is however AN insurance becomes halal and haram.
First thing first I am not an Islamic scholar and do not claim to be an Islamic scholar but I work in India and in the Insurance sector, I have come across many queries and question on Islam and Insurance, and have faced real difficulties while implementing social insurance program where coverages are Below Poverty Line population and only criteria for enrollment is either having BPL card or a part of teams like weavers and artisans.
the basic question the individuals during this category is whether or not this can be HALAL as per Islamic jurisprudence and the majority cannot outline what they mean by underwriter being Halal and then a non secular head or community head would intervene and lift question on Interest and Gambling and a few educated individuals would come back around making an attempt to know wherever Insurance corporations invested their funds ?