Most scholars and fiqh councils hold that conventional commercial insurance is not permitted, because it combines uncertainty (gharar) with elements of riba and gambling. They allow cooperative insurance (takaful), where members donate to a shared fund to help each other (5:2). A few scholars permit commercial insurance. Where the law makes it compulsory, such as car insurance, scholars treat it as a case of need.
Wale walao riba hawasimami ila kama anavyo simama aliye zugwa na Shet'ani kwa kumgusa. Hayo ni kwa kuwa wamesema: Biashara ni kama riba. Lakini Mwenyezi Mungu ameihalalisha biashara na ameiharimisha riba. Basi aliye fikiwa na mawaidha kutoka kwa Mola wake Mlezi, kisha akajizuia, basi yake ni yaliyo kwisha pita, na mambo yake yako kwa Mwenyezi Mungu. Na wenye kurudia basi hao ndio watu wa Motoni, humo watadumu.
Enyi mlio amini! Msivunje hishima ya alama ya Dini ya Mwenyezi Mungu wala mwezi mtakatifu, wala wanyama wanao pelekwa Makka kuchinjwa, wala vigwe vyao, wala wanao elekea kwendea Nyumba Takatifu, wakitafuta fadhila na radhi za Mola wao Mlezi. Na mkisha toka Hija yenu basi windeni. Wala kuwachukia watu kwa kuwa wali- kuzuilieni kufika Msikiti mtakatifu kusikupelekeeni kuwafanyia uadui. Na saidianeni katika wema na uchamngu. Wala msisaidiane katika dhambi na uadui. Na mcheni Mwenyezi Mungu. Hakika Mwenyezi Mungu ni Mkali wa kuadhibu.
This is general information, not a fatwa. For your own situation, ask a qualified scholar.
Questions about halal and haram
Is commercial insurance permitted?
Most scholars and fiqh councils hold that conventional commercial insurance is not permitted, because it combines uncertainty (gharar) with elements of riba and gambling. They allow cooperative insurance (takaful), where members donate to a shared fund to help each other (5:2). A few scholars permit commercial insurance. Where the law makes it compulsory, such as car insurance, scholars treat it as a case of need.
