Taking out insurance
Question
Question: In the present age, what is the ruling on taking out insurance — on oneself, or on a shop, a motor car and the like?
Answer
Insurance contains both interest and gambling (qimar), and both of these are prohibited by the Shari‘a; so insurance too is prohibited. However, if a person is in such a place and such an environment that without taking out insurance the protection of life and property is not possible at all, or there is a legal compulsion, then taking out insurance is permissible.
Source: Fatawa Mahmudiyya
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