Zakir Naik – Is General Insurance or Life Insurance Permissible

			This question, as by Altaf sidiki from Mumbai is general insurance or life insurance halaal.
		

			A similar question is asked by Omar matar from Kashmir can one insure one's house and shop? As you
might be knowing that in Kashmir, there are regular encounters in which houses and shops are blown
up? The question poses that is general insurance or life insurance permitted, then the Muslims in
Kashmir ensure the house because it's sewn up at cetera.
		

			Insurance per se, is not Haram. But because of the thing associated with insurance, most of the
damage from the conventional insurance that we have, or the commercial insurance, the reason it's
Haram is because it has three criteria, which are number one,
		

			the reason of ambiguity. Number two, it has an element of gambling, and number three is rubber. In
the conventional insurance, what happens, it may be a car insurance, that may be health insurance,
it may be car insurance, you may buy insurance of the car, and the full year, nothing happens. So
the owner of the company of the insurance gets the profit, and you don't get its ambiguity. Or if an
accident takes place, the company pays for the repair of the damage, it may be excessive, so you
benefit. And the company goes in loss. There's ambiguity, there's an element of gambling so for
example, the life insurance thing happens to you, or health insurance or health insurance, and
		

			nothing happens to you for the full year and yet you're paying. So scholar the club these two
categories together ambiguity and gambling, this is one of the major reasons that insurance is
haram. And the other reason is the second or the third reason is that most of these conventional
insurance companies, they keep the money in banks or they invest in money instruments, which
involves interest or a bar. So based on this criteria, the conventional insurance is haram, but
there is something like an Islamic insurance known as takaful. So, if you take the careful which is
Islamic insurance, it is not a commercial insurance that is more of a corporate insurance in
		

			conventional insurance or a commercial insurance. The owner of the company gets major of the profit
and a corporate insurance the people all of them are shareholders. So takaful reduces the ambiguity
reduces the element of gambling, or removes that completely. These people who are involved in the
raffle, they all are shareholders and they give as though they're giving donation and they give
donation and whoever requires it gets the benefit based on the deed that one's during what time and
there was scarcity of food. So the Savas collect the food from all the people and then distributed
equally that means all of them give the food and then they collect what it is and the distribute
		

			equally. So this is permitted.
		

			So, in the castle, what happens all of the members are shareholders. So just in case, if no accident
takes place, no one is sick, what happens that money goes back to the shareholder
		

			in the condition of insurance, if no one gets a full benefit, the owner
		

			the commercial insurance, the one who owns insurance benefits here, it goes back to the shareholder.
So the element of ambiguity is reduced, the element of gambling is reduced, and it is more of
helping each other based on the verse of the Quran Surah majda. Chapter number five was number two
that help one another in bear and taqwa in righteousness, in piety
		

			and in virtue. So based on this was Dr. Rhonda takaful is formed, they featured that the Islamic
Sharia is followed, and all the Haram is not there. And if the takaful invests, they see to it that
they don't invest in a Riba based investment. They invest in a Sharia compliant investment. So the
money that comes they put in a Sharia compliant, which is based on the principles of the Sharia, it
does not involve Riba it does not involve interest. So if you take an insurance that is takaful
insurance, based on the summit principles, it's permitted, but the normal conventional insurance or
the commercial insurance, it is haram. It is prohibited you should not involve whether it's in
		

			Kashmir, whether any part of the world with a bomb is going to break your house or not. It is not
allowed you should not do it. Unless someone is forcing you like in some countries, taking out
insurance of the terrorists complicity like in India, and there is no takaful. So what do you do?
You take out a third party insurance. The minimum requirement is a third party, not a comprehensive
insurance. So there's no takaful in countries like India. You can declare a third party insurance
but don't take out a full comprehensive insurance.
		

			Full comprehensive insurance, we'll add the element of ambiguity we'll have the element of gambling
we'll have the element of rebar. In a third party insurance you don't benefit at all. If a third
party Sue's you, then the company will be on your behalf so you're not benefiting. It's a small
amount. So if someone is forcing you to take out an insurance, the company says health insurance and
you have no say of it, then even if it's a conventional insurance, somebody forcing you in that
case, it's permitted but you voluntary doing it. If someone is not forcing you it is haram. However,
if someone is forcing you and takaful did they take the coffin. If it's not there, the last resort
		

			you can take the convention trip but take the lowest category voluntary if you are living in a
Muslim country or a country which has the takaful and you want to take that's permitted, but taking
voluntary intentionally a conventional insurance that is haram but takaful based on the Islamic
Sharia is permitted.