The main objective of this book is to judge whether or not those evils are found in the insurance, which Islam prohibits. Islam, as defined by the holy Prophet Mohammad (ﷺ):
“Addeenu Moamla” (Islam is identified by dealings).
The dealings are of two types:
1. Huqooqullah : The dealings with Allah
2. Huqooqul Ibaad : The dealings with other people

Any dealing between the man and Allah is private. The man is accountable to only Allah who is the most Gracious and the Merciful. He can forgive any misdealing but those wrong dealings which are between the people with each other, are not forgivable. A Hadith is worth quoting here:

Once a Badouin came to the Prophet Mohammad (ﷺ) and asked “what is Iman? (What is faith?), the Prophet(ﷺ) said, “You choose the same thing for others which you like for yourself”

Therefore, the Quran, Ahadith and Fiqh emphasise on the manners of dealings between the men. Since the money matters are important in the life, a lot of guidance on financial dealings is available in the Quran, Ahadith and Fiqh. In fact, the most of the Quranic teachings are about the dealings only.

Shariah wants to make sure that any kind of dealing regarding the earning and spending be clean and helpful to each other and healthy and constructive to the society. If the income is not legitimate, the Prophet Mohammad (ﷺ)warns that the prayers will not be accepted. In a Hadith, He (ﷺ) says:

“The prayers will not rise a foot above the ground if the income is not Halaal (legitimate)”.

In another Hadith, the Prophet Mohammad (ﷺ) said in the sense that even if there is a single grain of haraam income in the entire food, or even if there is a single thread of haraam income in the clothes, the prayers including Namaz, Roza, Zakat, Haj, Dua will not be acceptable to Allah.

The Shariah’s check on the dealings is microscopic. Therefore, the verses of the Quran are more in number on the discipline of the dealings than on the ways of worship. While reading the Quran and Ahadith, one feels that Islam has descended only to rectify the dealings between the men.

Therefore, it is a must to check the Insurance too.
Since the insurance is suspected of carrying those evils which are strictly prohibited, the responsibility of the Ulema as well as the common men is to study thoroughly. On one hand, it is a fact that the insurance is a great service to the mankind. On the other hand, it is misused by the corrupt money-minded capitalists who have made insurance an objectionable practice. We must check how many of the evils are avoidable or absorbable. We will not be exempted from our accountability merely by declaring it Halaal or Haraam. With a very careful research, scrutiny and a sense of responsibility every scholar as well as the modern educated persons must come forward and guide the world. Otherwise, crores of men who need help will be deprived of it and everyone will be responsible for keeping them poor and helpless.

The main objections on the insurance are:

1. The insurance involves Riba (interest)
2. It is similar to Khumar or Maisir (gambling)
3. It is Gharar (betting on uncertain)
4. It indulges in Ghish (cheating) and Ghaban (fraud)
5. It is Zarar (deliberately or undeliberately damaging to others)
6. It is against Allah’s will
7. It determines the price of life
8. It is against Tawakkul (trust in Allah)
9. It is a foreign element. There is no mention of it in the Quran or Ahadith
10. It is against Al Meeras and Al Wasiyyah (inheritance and will) rules of Shariah.

Here, it is worth quoting Dr. M. Najatullah Siddiqui from his book “Insurance – in Islamic Economics“, pages 42-43 that:

The Fiqh’s criterion of legitimacy of any dealing is the involvement of the above evils. If the dealings are clean from any of the above, it is not only legitimate but also required by the Shariah to be established if they are useful to the humanity. On studying the insurance, it is evident that the insurance is clean from the above mentioned evils. It renders an important service to the individuals as well as to collective interests of the society.

In the ordinary circumstances, the insurance is clean from the Ikrah (disliked), Izterar (uneasy, uncomfortable), Ghish (cheating) and Ghaban. If any contract involves these, the intervention of the law can correct them. If the private insurance companies collect the amount of premium more than required, it is called Ghaban. If the insured person hides the truth about his health, age, financial status, etc., it is called Ghish.

The Shariah wants to make sure that any party who enters any dealing must acquire the full knowledge about the terms and conditions, profit and loss, rights and duties of each party. Nothing should remain vague for any party which can become the root of anger, grief and dispute later on. If the knowledge about the quality and the quantity of the commodities under selling or buying is lacking, it creates the clash of interest and, consequently, conflicts.