Assalam oalaikum,
Besides Riba and Gharar there is another major argument against insurance, i.e. Al-Qimar or gambling.
Those who favor insurance will definitely go to any length to prove that there is no resemblance between insurance and gambling. This is because such people irrationally believe in the idea of insurance due to their own irrational fears which get the better of them.
However, Quran and ahadith have categorically forbidden all the economic transactions that entail Riba, Gharar and Al-Qimar (gambling) and Al-Maysir (unearned income), wagering, taking on responsibility that is not permitted by the Shariah, unknown quantity etc. Islam does not allow monetary transactions which are unproductive and which provide undue advantage to one party at the cost of another.
Living in non-Islamic countries is not an excuse to feel that one is driven by the need of accepting and seeking the concept of insurance. A Muslim has to follow the Shariah injunctions irrespective of the country where he resides. (contd)
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