Different types of insurance and their ruling

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Can we Muslims apply for insurances, the different kinds, are they permissible?

Zaynab El-Kateb:

All types of commercial Insurance are haram ie. not allowed. It is prohibited to pay money for unknown service or product or value. I do not know what am I going to take for the sum I paid. This, in Arabic, is called ‘Al Gharrar’ and it is ‘an unknown deal’.
So, for example, if I paid insurance for my car, in case of accidents I will take compensation. I will pay USD 500 and what will I take against this USD 500 that I paid? Either:

  • Nothing because I did not make an accident,
  • USD 500 or less because I made a small accident, or
  • I could take USD 500 or more because I made a big accident.

In the case the government makes some insurances obligatory, then I will have to pay as I am forced to do it, but I will not take compensation in case something happened.

I want to remind you with beautiful words for Imam Ibn Baz:

“The role of money is to serve the religion, we pay to save our religion and not to sacrifice our religion to save our money.”

His words should be a principle in our lives. Let’s trade with Allah, a guaranteed winning.



  • Umm abdurrahman
    February 2, 2018, 8:10 pm  Reply


    I’m really confused. So if it is obligatory in this country to have car insurance, One can pay the insurance but Cannot take compensation in case of an accident Or Are you saying One doesn’t have insurance at all and therefore cannot drive a car? Please clarify, BaarakAllahu feekum

    • Admin
      February 2, 2018, 9:19 pm

      wa alaikum salam.

      If you’re forced by the government to pay an insurance for your car, then there is nothing upon you, just make sure that you make the basic insurance as you’re being forced to do it, so you can drive your car.

      But since still this insurance is not according to Islamic rulings then you are not allowed to take compensation in case of accident.

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