Wednesday, November 14, 2012


Assalam oalaikum,

The point which lacks clarity and which has hindered a clear ruling on the issue of insurance is the nature of insurance and insurance contract. If there was not a difference of opinion amongst the Islamic scholars regarding the nature of insurance contracts then a lot of confusion could have been avoided.
The rules and regulations of about 30 kinds of contracts such as rent, partnership, endowment, guarantee, loans etc are mentioned in the Book of Fiqh. These contracts can be further divided into many other types of contracts. The most significant contract is that of al-bai (sale). The rules of various other contracts are judged in the light of al-bai.
It is very important to identify the category under which the insurance contract comes because different types of contracts have different set of rulings for them in Islami fiqh.
Three different opinions may rise regarding this issue of insurance. The nature of insurance contract can be construed as the following:
A contract of charity
A modern transaction which is subject to its own set of rules and regulation.
A basic sale transaction wherein a commodity is exchanges for another.

In the following posts we shall analyze the nature of insurance contracts in detail.

Keep Me In Your Prayers.
Amel Soname

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