We have discussed earlier that however lucrative an insurance policy may appear to some yet its harm definitely outweighs its benefits.
First and foremost, the concept of insurance leads to the concentration of wealth in the hands of the wealthy. This is against the principles of Islam. Charity, as we know, is one of the five pillars of Islam. The main motive of charity is to bring about social justice through equitable distribution of wealth- which prevents the concentration of wealth in a few hands. This is in total conformity with the Quranic injunctions.
Allah (swt) says in the Quran:
‘What Allah has bestowed on His Messenger as gains of war from the people of the township, belongs to Allah, to His Messenger and to kindred and to orphans and the destitute and wayfarer (those who lack means to sustain a trip) so that it does not become a fortune that circulates between you and the rich amongst you. (TMQ-59:7)
Islam is against stinginess, hoarding of wealth and self-indulgence. On the contrary, Islam encourages spiritual development, universal brotherhood and pooling together resources for the betterment of the society, as a whole. Sadly enough, insurance leads to an unequal distribution of wealth which goes against the Islamic principles in many ways, such as:
Since insurance is a flourishing business in the modern times, so the entrepreneurs who own the insurance companies gain huge profits.
Ironically, the rich who are not in a desperate need for an insurance cover can afford to get themselves insured against any hazard. On the other hand, the poor who are in a real need for financial security cannot afford the insurance policies.
Since the business of insurance has nothing to do with charity and it includes the elements of gambling and uncertainty/gharar so it creates an evil situation in which both the parties, i.e. the insurer as well as the policy holder indulge in deceit and fraud in greed of money.
I shall discuss about the dishonesty involved in insurance in my subsequent posts.
Keep Me In Your Prayers.