In Islam all forms of Al-Maysir is not allowed, e.g. gambling, betting, insurance, etc, similar to other religions. It also includes the common insurance where you get recompensed only ‘if’ something happens.
Commercial insurance is a policy/agreement that provides a guarantee against financial risk/loss, i.e. it is used to hedge against financial losses. Most popular types are auto, health, property, life. Insurance of the type where one party wins and the other party loses based on a ‘guessing game’ of probabilities, is not allowed in Islam under normal circumstances (e.g. not forced or a necessity, or…) – it is al-maysir
There two scenarios / types of insurance contracts that are allowed in Islam:
1. One is agreed by scholars and this is called co-operation insurance. It is an insurance that is run by a non-profit entity, i.e. a group of people who come together to form a non-profit where no one person(s) owns the organization, but rather the entity to serve the public good owns the assets.
2. The other type is when a group of people form an insurance company, where all the assets will always belong to this group of people, and the company is owned by those who are owners and clients at the same time. The basis if the company makes money then it is their, and likewise any losses have also to be divide amongst owner/client. And because they are all the owners incurring the profit or loss, this is not maysir and therefore a halal form of insurance although some scholars do disagree about it.
We should all strive to do what pleases Allah and in all of our affairs. If there is a will to find a solution, then there is a way to comply with Allah’s law to have a easy & blessed life.
#getIslam #GhassanAlBarqawi #IslamicFinance
0:00 – Intro: Al-Maysir
5:53 – What is insurance & how does it work?
10:52 – How does an insurance company determine whether to insure or not?
15:57 – Who pays when insurance pays you some money?
20:36 – Why do insurance companies have all these precautions?
24:32 – Are there any halal / lawful insurance?
27:57 – Is the NFL and NBA for profit org. or non-profit?
33:40 – A non-profit co-operation org. can serve insurance in a halal way
37:23 – 2nd type of halal insurance structure
43:25 – Examples of existing companies & requirements?
47:28 – Difference between insurance and service agreements
Speaker: Ghassan Al-Barqawi
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