The holy Prophet Mohammad (ﷺ) had advised people to provide material protection to their offspring. Narrated by Aamer bin Saad bin Abi Waqas the Prophet(ﷺ) said:
“Verily it is better for you to leave your offspring wealthy than to leave them poor asking others for help”.

It is said that the insurance is against the principle of Tawakkul as the insured person puts his trust on the insurance policy instead of trusting in the fate destined by Allah. It is not so. In an insurance policy, the insured is not putting his trust on the insurer for a future protection but it is only a mutual transaction whereby both parties agree to work for a welfare or protection of the insured against an unexpected occurrence of loss or damage.

The Prophet Mohammad(ﷺ) has strongly condemned the begging or taking anyone’s Ehsaan (favour). He admonished not to ask for even the Miswak (the tooth stick) or a shoe lace from anyone. No person who has self-respect and dignity would like his family to go and beg for zakat, alms or loans. Neither anyone would like his family to sell out or mortgage the house or articles. So, he ensures that in case of his death or any mishap, his dependants do not suffer. It is same as building the house, providing safety and security and comfort to the family. Raising high walls around, fixing alarms and locks, keeping the dogs or guards do not mean that he does not have trust in Allah.

While it is admitted here that both the insurer as well as the insured mutually agree to take an initiative for the protection of the insured against the unexpected, they still ultimately put their trust in Allah who is the sole cherisher and sustainer of the whole universe. In fact, the initiative which is taken by both the parties does not deviate from the principle of Tawakkul. Indeed, in accordance with the Islamic concept of Tawakkul, the man is asked to strive to the best of his ability in performing a particular act or job before putting one’s trust in Allah.

It is worth quoting an article from The Milli Gazette dated 1-15 April, 2002. The essence of the article is a Hadith: Tie your camel first, then put your trust in Allah which is the main concept of Insurance. The article says:

“In this modern world, one of the ways that can be done to reduce the risk of the loss due to accident or misfortune is through insurance.
Thus the Ulema of India have had a rethink on the issue in view of the severe damages suffered by the Muslims in India in the communal riots which destroyed their properties, homes, shops, factories and other possessions.
Our belief as a Muslim is that in this world everything happens according to the will of Allah. This belief should not be construed to mean that people should not plan to take care.
“Leaving it to Allah” as some may say, does not mean we should not be prepared. What is extremely important for us to know is that whatever planning and preparation we do, have to be done according to Shariah. The Shariah has taught us that while we should accept whatever “misfortune” that befalls us, we are also required to avoid or reduce the possibilities and the effects of these “misfortunes” by taking positive steps.

Anas Bin Malik reported that one day a Bedouin came to the Prophet (ﷺ) on a camel and asked him: “Can I leave the camel alone (without tying it to any tree) and trust in Allah?” the Prophet(ﷺ) said: “Tie your camel first, then put your trust in Allah” (Tirmizi).

Here we see that the Prophet Mohammad(ﷺ) taught the man to reduce the risk of losing his camel.
Imam Ibn Rajab says:
“You should know that having your trust in Allah does not mean abstaining from taking the necessary measures to take care of something. This is the Sunnah of Allah and His law in the life. So using the means available to us is being obedient to Him and having trust in Allah is having faith in Him”.

Similarly in many actions of the Prophet Mohammad(ﷺ) , one can see that whenever possible he took the necessary steps to reduce the risks although he could have done otherwise if he wanted to. For example:

• During the Hijrat (migration from Makkah to Madinah), He(ﷺ) went to hide in the cave first instead of going straight to Madinah.
• He commanded the companions to migrate by batches instead of in one big group.
• Again, to reduce the risks, he put on his armor on instead of wearing his normal clothes.

Therefore, in this modern world, one of the ways that can be done to reduce the risks is through insurance. Thus the Ulema of India have had a rethink on the issue in view of the severe damages suffered by the Muslims in India in the communal riots, which destroy their properties, homes, shops, factories and other possessions. They used the Fiqh Principle of “Necessity sometimes makes the prohibition permissible”. Thus, they gave the permission for the Muslims to take cover of insurance against damages suffered.

Eminent Ulema and Islamic Organizations who have issued Fatwas in favor of the Insurance cover for the properties include Jamat-e-Islami, Islamic Fiqh Academy, Idara-e-Tahquiquat Nadwatul Ulema, Maulana Abul Lais Islahi, Maulana Shams Peerzada, Maulan Mujahidul Islam Qasmi, etc. Maulana Shams Peerzada was in favour of the Life Insurance cover as a safe guard against the communal riots”.

Dr. M. Najatullah Siddiqui’s views will be guiding for those who object that the insurance is against Tawakkul.
He says:

It is the dignity of a Momin to have patience and surrender without any sorrow or grief to Allah. But it does not mean that he should not take precaution to avoid the risks and accidents. He must hold against the unexpected. It is fully in accordance with the belief in Taqdeer (fate) and perfectly in line with the obedience to Allah and also endorsed by the history of the Prophet Mohammad(ﷺ) as well as his companions and the sages that the man must take steps to avoid risks and financial losses individually as well as collectively. It is obligatory on him to take precautions against every kind of risk like the loss of life, property or health.