Syed Ahmed Urooj Qadri Rahimahullah
(Ex-Editor Zindagi, Rampur):

Insurance is the admixture of Riba, gambling and Gharar. Also, it is opposed to the Islamic law of inheritance. Whatever the insurance companies give to the policy holders under the name of bonus or dividend is nothing but Riba which the Quran has forbidden. The stipulation that the insurance companies will pay the amount agreed upon between the parties, if a person dies or the property perishes, before all the instalments are paid, is within the definition of gambling. By offering compensation as bait, insurance companies win the premium and deal in interest carrying transactions and have assumed the role of bankers. But unlike the banks they forfeit the premiums, which are already paid if the policy holder is unable to pay further premiums.

It should not be forgotten that the Riba and gambling are strictly prohibited and it makes no difference whether the place of contract is Darul-Harb or Dar Darus-Salam. The Quran and the Sunnah are quite clear on this point. The opinions of Imam Abu Hanifa and Imam Mohammad, in this regard, are very weak. Imam Abu Yousuf and all other jurists have correct opinions.

A business which is basically unlawful can not be held lawful if it is conducted by the state. The illegality of the insurance is not due to Riba only but other various illegal elements. A separate department of insurance under interest free bank will solve the economic problems of the Muslims. The system of Aqila (Those who have to pay blood-wit) may serve as an example for this purpose.

(The suggestion in the last sentences should be read under the light of the chapter ‘Can, If, Should philosophy‘ in the following pages)