Wednesday, November 14, 2012


Assalam oalaikum,

The schemes of insurance violate the Islamic Shari’ah in more than one way. So it would be a sin to get carried away by the alluring claims made by the insurance companies and to indulge in something which has been prohibited in the Quran and ahadith.

Let us first begin with the first point of contradiction, i.e. Riba. Islam strictly forbids all the transactions which are based on Riba.

Riba is an Arabic word that means addition or increment. Riba is a significant term in Islamic fiqh. It refers to an unjustified addition in borrowing or lending money and which is paid in cash or kind above the loan amount as a condition levied by the lender or voluntarily by the borrower. This kind of Riba is known as Riba-al-duyun or debt usury in Fiqh.

There exists an aspect of Riba in the insurance policies because the insured person is bound to receive much more money than what he /she had paid. Besides this, an element of Riba is found in the insurance funds which are invested in bonds, stocks etc.

There are numerous Quranic verses as well as ahadith which have forbidden Riba. Hence, it is the duty of each Muslim not to fall into a trap laid by the insurance companies which are merely business ventures with a profit motive.

Keep Me In Your Prayers.
Amel Soname

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