Fatwa No : 84297
Shari'ah Ruling on Takaful as an Alternative to Conventional Insurance

Shari'ah Ruling on Takaful as an Alternative to Conventional Insurance

What do the esteemed Muftis say regarding the following matter:
I had taken out an insurance policy from a non-Islamic bank, without knowing whether it was halal or haram. Now I have come to know from others that insurance is considered haram. Could you please provide me with Shari'ah guidance on this issue? Is insurance truly haram according to Islam? Kindly provide a response based on the Qur’an and Hadith. Jazak Allahu Khayran (May Allah reward you with goodness).

الجوابُ حامِدا ًو مُصلیِّا ً

Yes, conventional insurance is prohibited (haram) in Shari'ah, as it is based on interest (riba), gambling (qimar), and uncertainty (gharar). Therefore, it is necessary to avoid it. However, as an alternative to insurance, if there is a reliable institution that provides Takaful under the supervision of a Shari'ah board and in accordance with Islamic principles, then it is permissible to obtain a Takaful policy from such a trusted institution.

مأخَذُ الفَتوی

قال الله تعالى: {وَأَحَلَّ اللَّهُ الْبَيْعَ وَحَرَّمَ الرِّبَا } [البقرة: 275]۔
وقال الله تعالى: {يَاأَيُّهَا الَّذِينَ آمَنُوا إِنَّمَا الْخَمْرُ وَالْمَيْسِرُ وَالْأَنْصَابُ وَالْأَزْلَامُ رِجْسٌ مِنْ عَمَلِ الشَّيْطَانِ فَاجْتَنِبُوهُ لَعَلَّكُمْ تُفْلِحُونَ } [المائدة: 90]۔
في الدر المختار: و في الأشباه كل قرض جر نفعا حرام اھ (5/ 166)۔