Insurance in Islam: Halal or Haram? (هل التأمين حلال أو حرام؟)


Paul Whisler

74 Comments

  1. Well I am student of Islamic finance I don't know much about many things, I've questions in mind like
    Example of gasoline and wine, I think u can't compare any commodity with money since u can rent a car or house but u can't rent money and this rule changes everything

  2. Thank you for this very important video. This is very important. Challenging the mainstream "olama" opinions on matters that are life and death for people is vital. Your explanation is clear and methodical. Please continue with this important series and let us know how to support this effort.

    JAK 🙂

  3. What about the insurance that returns more money on completion of contract? i.e. if you die, your family gets it, if you live, you get more than you have deposited. Similarly, insurance for child education/marriage, where money is returned after a specific period. I can't find such scenarios in your lecture. Please justify it.

  4. Please check different plans on link below and let me know if they are legal from islamic point of view.
    http://www.statelifeinsuranceplans.com/different-insurance-plan.html

  5. Jazakallah for sharing this – was very useful perspective to take. Please make more vidoes!

  6. Good attempt. However, but the last argument by Dr. Zakir Naik about the money which the insurance company receives from their subscribers are kept in Bank or invested in Haram interested related businesses to grow the money cannot be defeated. You tell me one insurance company which does not make/invest in direct interest related business out of my insurance money. I'm ready to subscribe for it.

  7. I find this very misleading. Gharar is the ambiguity on what the sale is completed over. i.e. product or service. this product or service is not conditional. But Insurance is conditional, i.e. if i crash or if someone hits my car etc. SO your justification that protection is being bought is incorrect. Protection is only given IF one of a handful of circumstances occur.

  8. Thanks brother for an excellent and informative video. What is your opinion on Life Insurance?

  9. Really amazing analysis… a rare interpretation… I hope this video reaches to the muslim masses and the religious scholars.

  10. Brother I need a clarification. In India, the life insurance company promise to pay 10 lakhs in case of death within a certain period of time, and if the death doesn't take place the insured will get the total sum of money which exceeds the total premium paid by the insured- if total premium paid by the insures is 5 lakhs, he received 6 lakhs if he doesn't die within that specific period… Is dealing with this insurance company allowed ? your valuable detailed comments please……. I would be happy if you could reach me on [email protected] because many a times i don't follow youtube. Jazakallahu khairan

  11. The 'protection'of the kind that is sold in insurance should be given for free. a person is allowed to beg only in three circumstances. you are a bright person and I trust you'll get the principle behind the transactions that could never be commercialised in shariah .

  12. As to conventional insurance, the amount of premium collected from insured is invested in non-halal(or riba based banking) industry and the profit gained will be paid to the insured as claim.

  13. Insurance by itself is nothing wrong, but the way it is conducted by conventional way is not shariah compliant.

  14. Brother, in your takaful video, you said that takaful is not islamic insurance. And in this video, you say that conventional insurance is not gharar and not gambling and is Halal. By this meaning, you said that takaful is not an islamic insurance, but conventional insurance IS islamic insurance.
    Im sorry, but I have to disagree on you. Gharar is by definition is buying and selling, not knowing the profit of it. In other meaning, it is buying and selling which will not bring profit to both of the parties involve.
    If by example you cancel your insurance, you will not get anything from the insurance company. You stand to lose. If you claim to the insurance company, it will always exceed the amount of money you give to them. They stand to lose.
    As I said before, Allah know best, and may Allah protect us and provide us the protection and help that we need inshaAllah.

  15. Thanks Alot and please i need to talk to you further i can get you email or whatspp bro…please

  16. assalamualaikum. Anyone of you aware of Argo insurance company in USA. working in this company permissible in Islam??
    please help me.

  17. There are reinsurance and retrocession processes after insurance. Please give you opinion on this as well, since reinsurance is the insurance of insurance companies

  18. I absolutely disagree with your argument in the last four minutes. you are trying to compare the idea of "buying gasoline from a gas station that sells alcohol" with point that "insurance is haram because insurance companies make profit from interest and other unlawful things"
    the point is, when considering the comparison of a gasoline station, you do realize that a gasoline station makes at least %90 of its profits from selling oil; common sense. the profits of selling alcohol is nothing compared to the selling of gas and oil. this is just like the idea of "oil and gas profits" of a alcohol bottles company that happens to own a few "gas stations".
    unfortunately this is not the case in insurance companies. If you live in a western country like me then you probably do know that indeed most of the profits insurance companies make are from simply interest from the high amounts of money they make from people. put such money in a bank and see how interest will increase them. insurance companies hire thousands of people, if not tens of thousands, so the money they make from people are not their exclusive high source of income.

  19. Interesting arguments brother.
    Although people are always wary of setting aside conventional scholarship for a single person's opinion (no offense) but I think these are the kind of topics where logic takes precedence over actual application of fiqh.

    Although the last part about insurance not being riba took some time getting used to, I think I can agree with you on a lot of points.

    Some of these are exactly what I had thought too. I had read a hadeeth where it was said that the Prophet pbuh kept stockpiles of food just in case of some calamity. Which I think is also a kind of insurance.

    So thank you for the analysis! Much needed!

  20. Assalam-o-alaikom Brother! Masha-Allah, you've given logical views on the whether life insurance and the like are halal or haram. You've got a totally opposite opinion. I wonder if you can possibly have the chance to meet with the featured Islamic scholars to come up with an official stand on the subject and have it publicly declared to put an end to this issue. May Allah grant you more wisdom.

  21. yeah I agree with you brother but still I'm worried about the income which I'm earing in an insurance company, Is it right or wrong??

  22. no, stop justifying it, it's very simple to understand why its haram, because its not legit/fair
    same reason why its shirk to use interest, electronic money, credit cards, and even paper money, how is any of those halal according to the quran? The western industrial civilization is a lifestyle of shirk, brought by dijjal using gog & magog

  23. riba means much more than interest, it's any for of ripping off someone, including override payment
    jewish bankers do this to get themselves more rich and rich while poor stays poorer and in debt forever, it effects the whole nations, social political economical orders are crumbling under dijjal's corporate feudal pyramid system
    (p.s. the least harmful would be car & health insurance, life insurance is unnecessary and most harmful)

  24. your logic is weak & invalid, they make more sense than you
    you're just a school boy with no sophistication

  25. Looking fwd to the open debate abt this and related topics between rakaan kayali and one or more of the ulema featured here. Its gonna be explosive!

  26. No protection isn't a defined commodity. It is only a pledge that a predefined amount of money will be paid to a policy holder if an incident occurs regardless of the total payments made buy the policy holder. If the defined payout is $100, and the total premiums/contributions of the holder is 60 dollars, he gets 40 dollars above his contributions which is a loss to the company. If no incident occurs in the period of insurance he gets paid absolutely nothing, resulting in a loss to the holder and the company reports his contributions their own earnings. This is essentially how gambling works.

    So the opinions of the scholars are perfectly valid. Stop misleading people!

  27. If something is doing bad with the society then it must be haraam,
    In case of insurance… It's doing only good to the society…
    So even if it is a gambling, then it's a good gambling….And it should be halal….

  28. What do these scholars expect people in the US and similar countries to do if they get sick? Healthcare is so expensive and is financially devastating to those who fall ill without insurance and even with it. Do they expect people to just die? That doesn't seem like justice. Your points are great btw.

  29. I want to work at government insurance in my country. But im affraid beacuse some say insurance is haraam. After I watch this video and your explanation I get the point that it is not haraam. Thank you hope this video can give us the modern explaination of insurance in islam.

  30. This guy is just being like a jew and twisting the answers. He is using the same excuses what I have heard from every other twisted person, when they say is using the mic and speakers bidah? lol

  31. I think the shayks don’t really understand that for example car insurance is meant to cover damage that you inflict upon others, that’s why it’s obligatory in my country (Netherlands).
    Health insurance is also about spreading the costs over generations. Generally speaking, you make highest costs in the last 10 years of your life. And with serious health problems you couldn’t afford treatment without insurance.

  32. Salam brother. A very good analysis you make on the insurance industry. I think what is important is the niat on purchasing the policy. If it is to protect your family from being ridden with debt after you passed on then it should be permissible. However if the payout is more than what they need, they can always take what they need and use the rest to do more or help others who needs it.

  33. very different but useful interpretation, challenging the mind to think out of the box

  34. Al baqarah 2:240 And those who are taken in death among you and leave wives behind – for their wives is a bequest: maintenance for one year without turning [them] out. But if they leave [of their own accord], then there is no blame upon you for what they do with themselves in an acceptable way. And Allah is Exalted in Might and Wise.

    if this doesn’t scream insurance I don’t know what does

  35. Asalaam alikum.
    I need help.
    I have taken an life insurance policy. And I pay yearly an amount. And after 30years they wil give back the amount I have deposited yearly+extra(bonus) .
    And I took this policy only because it will give me income tax exemption.
    When I took this policy I promised my self. That when I get my money back (more than Wat I payed) I wil take only the money equalent to the money required to buy the same amount of Gold, which I could have bought with the money each year when I deposited my yearly payment to the insurance company.
    So as I result I wil not be taking any interest(extra gain),
    as the amount of gold the I could have bought at the time of payment = the amount of gold which I could buy when they return my money.
    I am from India
    Is it correct..?

  36. ‘At-Tirmidhi (2167) narrated from Ibn ‘Umar (may Allah be pleased with him) that the Messenger of Allah (blessings and peace of Allah be upon him) said: “Allah will not cause my ummah to agree on falsehood; the hand of Allah is with the jamaa‘ah (the main body of the Muslims).” Classed as hasan by al-Albaani.

    The meaning of this hadith is that Allah has protected the scholars of the ummah of Muhammad (blessings and peace of Allah be upon him) from unanimously agreeing upon something false.’

  37. Salam i agree with you regarding insurance,is working for the government collecting tax haram and collecting interest on tax for goverment?

  38. I agree fully with the speaker. Islamic scholars display a puzzling myopia in viewing the payoff of an insurance contract (equating it to gharar) in isolation from the risk which is being insured. The objective of insurance is to reduce risk (risk aversion), the opposite of gharar – risk preference (gambling). Islamic scholars who argue that insurance has gharar need to take a basic course in risk management. Takaful is no different than conventional mutual insurance – if you do not make the "donation" to the fund, you do not get insurance coverage. The donation is an insurance contract.
    Riba – thats another issue. Interest in modern financial markets is not the same as exploitive usury charged by money lenders at the time of the prophet.

  39. Hope u write that in an article so we could send it to scholars communities

  40. please make more video .i am a new subscriber for your awesome channel,you should upload video regular basis about finance in islam ,i am a finance student , i like your analysis ,keep going bro,Allah will help you.

  41. Who makes you an expert in fiqh issues? Insurance is clearly haram. It is clearly gambling. All of the ullamah kabir are of the consensus that commercial insurance is haram. Fear Allah! Beware of following your naafs, instead of The Quran and The Sunnah! May Allah guide you, or break your back, ameen! Wa Allah hu alaam.

  42. This is very interesting point you are making. Have they ever thought that in most countries is not allowed to drive without a insurance? It's amazing that among those who have given their views what is Halal or Haram consider really the good sense what right. Looking forward to the next lecture.

  43. Thanks for the reply. It's nice to see that someone cares! For the moment keep up the good work. Salamualaikum!

  44. I’m really stuck because I like to be safe and traditional not these make everything halal watered down types, reality is though is seems scholars giving fatawa on financial matters have no financial understanding, insurance is risk management the polar opposite to gambling,it seems. The riba part is an issue unless the cooperative agrees it is like a fund this is agreed as permissible, but when we pay into commercial isn’t that’s what is happening the company isn’t paying from themselves but from other people doing what you are doing it’s very similar Allahu’alim this brother makes good points but until prominent scholars say this a Muslim shouldn’t risk it although I totally agree with his logic

  45. Is it allowed in Islam for a doctor to work as clinical Investigator in health company? The work alloted to doctor is to verify/investigate the medical reports and health treatment bills claimed by the company's employees who have their health insurances? Please clarify

  46. What do islamic scholars say about your view? Have you ever contacted some renowned ones, who then have confirmed your view to be correct in the islamic shari'ah?

  47. So I’m in the process of getting a job as an insurance sales agents but I’ve been so worried thinking it’s haram. Please help me.

  48. Wouldn't insurers charge higher premiums to those less fortunate because they're deemed higher risk? For instance someone with diabetes (which is qadar) is at higher risk of heart disease or kidney failure amongst various other complications. So a tax based health system would look at your wealth and provide free health care for all whereas insurance company will be keen on looking at your health risks and quoting you a price. 🤔

  49. Your arguments don't override the senior ulemas. Insurance companies pay about 3% of their income. Effort of inherited money comes from the one leaving the money. Your arguments don't convince me. Not having insurance is yakeen in ALLAH.

  50. Assalamalikum, please do reply. What's your opinion of Adsense income through youtube?

  51. Another point is that the jizya was halal and was paid by non muslims in return for protection by the state. It was a constant sum, just like insurance…

  52. brother
    Here the insurance company is the gambler not the insured.
    Look from that perspective and it's very clear.
    You are basically giving someone to gamble with it. The insurance company are counting that you never fall sick unlike traditional companies like airbag, fire alarm, security (which you have mentioned) they are more happy if you use their service exactly opposite of traditional business. This is like the one you are helping him in commiting a wrong act.
    Secondly, insurance is given only under extreme uncertainties. If someone is about to die, they dont get life insurance. But an airbag company is happy to put airbag in a 100 year old car.

  53. Insurance
    is nothing but gambling. Gambling has two important features viz,  

    (1)   An event happening as a matter of chance: (e.g.
    head or tail when a coin is tossed, 3 Aces in a draw of cards etc.)

    (2)   Wager: every participant (gambler) must pay a
    fee (e.g. a price for a lottery ticket, bet amount etc.)

    In case of insurance, the calamity (death, accident, fire, disease) befalls an
    insured as a matter of chance.

    Insurance premium (which replaces the wager) is swallowed by the insurer (bookie) when
    nothing happens during the specified period.

    Some people get deceived by investment linked insurance schemes where the premium
    (wager) for insurance cover is not clearly distinguished from the investment component. In all moneyback/investment/market linked policies, premium for life cover is deducted by the insurer from the investment component and every year
    when no untoward incident happens that premium is appropriated by the insurance
    company just like the wager by the bookie. The example of community contribution given is not comparable. When nothing untoward

    happens, the money in community box remains and not appropriated by anybody. insurance Co. is not taking care of anybody. It works on the law of probability. The underwriters are trained to create products to suit the insurance company's interests. The explanation given in the video is nothing but deception.

    Therefore, insurance is same as gambling and is Haram.

  54. salaam alaikum sir..how about the kaiser life insurance?this insurance are like investment…3 in 1 as theysay,,you pay in 7 yrs.only..after 13th yrs you received all your contribution with interest because they invest your money or like mutual fund, so its like your insured same time you have savings.so this insurance is halal or haram?thanks..

  55. ASA, The Prophet ﷺ told him, “Take a fatwa from your heart.
    i think the country in which Health service as so expensive , person can take medical insurance to avoid hardship to bear that medical cost, bcz if country established medical insurance net , hospital in turn increases/multifold medical charges to get their benefit in and muslim / individual not having insurance have to pay this increased cost unnecessary ….
    Rest Life insurance etc we Can't involve …by paying anything or saving tax…better to give tax to your country government to use for welfare…further it is upto government ..ur part is over…
    Allah make easy for whole muslim ummah to follow SIRATAL MUSTAQUEEM !!!!!!!!!!ameeen.

  56. At the end of the day you have to look at the commodity that is being transferred between the two parties, and that's what makes the transaction. The commodity that is being transferred is money for money, and that amount is absolutely unknown in insurance therefore it is definitely gambling!!!! Not only is it gambling it is also two forms of riba!!!

    Don't be fooled by this service nonsense, when you pay a worker you pay money (or fee) for a service the worker does for you, he doesn't give money in return! Always break it down to the base commodity that is being traded in the transaction (no matter what fancy word is used for the transaction such as service, risk aversion, benefit etc…..). Don't be fooled by Shaytan.

    An analogy is alcoholic beverages. Doesn't matter what you call it (beer, wine, sprite, vodka, taquilla etc…) if it contains khamar (ethanol drink), then it is haram.

    Don't be fooled by misguided persuasive argument, at the end of the day look at the base content and commodity that is being transferred between the two parties.

  57. AoA Brother!
    Which option should I choose?
    1.Market value
    2.Agreed Value
    Which one is Islamically better?

  58. Does the dictum: "Riba is haram" apply to all the three entities – an individual, an institution and a state/country? Every country takes loans on interest from IMF, World Bank etc. When we get benefit from such loans, will that be haram?

  59. I find these analysis really misleading. Why do you think Takaful is not Halal? Why do you think you know better than all these Ulamas? May Allah make it easy for us all.

  60. Practical Advice: unless the law requires it don't buy insurance as Allah and Islam is our insurance. Practically speaking if you or your family falls below Nisaab, then go to your local masjid or Islamic welfare org. As you are entitled to Zakat money. Even if you are not at Nisaab level you may get sadaqa money. Just make sure to pay 2.5% zakat now, give sadaqa when ever you can. Please follow the rightly guided scholars even if they don't make sense sometimes… never jeopardize your hereafter for this world…
    Sadly, that is what is going on here.

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