Here we shall discuss about the first point, i.e. insurance being similar to charity. Many Islamic scholars, who are in favor of insurance, claim that insurance is a blend of a charitable and a business type of contract. Some people are convinced with this description related to the nature of insurance but it should be realized that a contract does not become charitable simply because it may benefit both the parties. If this were the case then even the banks which offer interest would have been considered to be legitimate in Islam.
The insurance companies also do not involve any kind of support or assistance. The insurance companies never pay the insured person a single dollar without receiving payment (premiums) and a signed contract from them first. This is why the Board of Leading Scholars of Saudi Arabia has declared that ‘Insurance is a jointly onerous contract in which both the parties get something in return of what they have given. Thus, the characteristics of being a charitable contract are cancelled out in the insurance contract’. Blanchard has aptly remarked in his classic work on insurance that, ‘The insurer is not operating a charitable operation’.
Far from being charitable, the insurance companies are a part of
the commercial industry whose only aim is to earn profits. They try to exploit the weaknesses and insecurities of people, especially those who have a weak Imaan.
Keep Me In Your Prayers.