travel insurance in islam

• Give Your Zakat

When Is It Permissible to Get Insurance?

Answered by shaykh abdul-rahim reasat.

Assalamu ‘alaykum.

I heard that if insurance is not mandatory one should not get it, as with life insurance. What is the ruling on getting health insurance for people who are traveling and employment insurance from the government for eligible individuals?

Wa ‘alaykum assalam wa rahmatullah wa barakatuh.

I pray you are well.

In general, insurance is impermissible. Please refer to this answer for more information on this ruling. 

Travel insurance has the default ruling of impermissibility unless one is traveling to a destination where there is an overwhelming possibility of ending up in a situation that would leave one in extreme hardship. An example of this could be someone traveling to a war-torn country for aid, where an injury is likely and medical costs are high. 

Other forms of insurance should be avoided. If an employer arranges a contract for the employee then there is no sin or blame on the employee. He may benefit from the policy should the need arise.

May Allah grant you the best of both worlds.

[Shaykh] Abdul-Rahim

Checked and Approved by Shaykh Faraz Rabbani

Shaykh Abdul-Rahim Reasat began his studies in Arabic Grammar and Morphology in 2005. After graduating with a degree in English and History, he moved to Damascus in 2007, where, for 18 months, he studied with many erudite scholars. In late 2008 he moved to Amman, Jordan, where he continued his studies for the next six years in Sacred Law (fiqh), legal theory (Usul al-fiqh), theology, hadith methodology, hadith commentary, and Logic. He was also given licenses of mastery in the science of Quranic recital. He was able to study an extensive curriculum of Quranic sciences, tafsir, Arabic grammar, and Arabic eloquence.

Related Posts

Can one leave after the adhan has been called – mawlana ilyas patel, is there a punishment for persistent minor sins if one did not repent – mawlana ilyas patel, is it permissible to accept donations and sponsorships from non-muslim companies that have haram elements, is it permissible to provide copywriting services to businesses that use impermissible elements.

Accessible to all, supported by you

Learn With Us

• Course Catalog
• Live Schedule
• Student Login

Seek With Us

• Ask a Question

Get to Know Us

• Our Reports
• Privacy Policy

Get Free Courses & Prophetic Guidance in Your Inbox

Email Address *

Is Travel Insurance Haram? Dos and Don’ts of Halal Travel Insurance

Traveling is an excellent way to experience different cultures and broaden one’s horizons. However, traveling comes with its own set of risks, such as loss of luggage, medical emergencies, trip cancellations, and accidents. To mitigate these risks, many people opt for travel insurance. It provides financial protection against those unforeseen circumstances.

However, when it comes to Halal travel, Muslim travelers are often hesitant to purchase conventional travel insurance because they are unsure if it is Halal or Haram. Because Islamic law prohibits any financial transaction that involves interest (riba) or uncertainty (gharar). In this case, Halal Travel Insurance comes in. It covers medical emergencies, trip cancellations, lost or stolen luggage, flight accidents, and other risks that may occur while traveling. Additionally, halal travel insurance provides coverage for issues that may arise from violating Islamic law, such as unintentional consumption of non-halal food or alcohol.

In this blog post, we will explore the concept of Halal travel insurance, its importance, and how it differs from conventional travel insurance.

Is Travel Insurance Haram?

Conventional travel insurance considers haram as it involves riba, gharar and maysir. Takaful insurance policies are Islamic alternatives for Muslims. It’s important to review the policy carefully and consult a knowledgeable Islamic scholar to ensure it complies with Islamic principles.

How Halal Travel Insurance Differs from Conventional Travel Insurance

Arguments against travel insurance in islam, 1. riba (interest) in travel insurance.

Riba, or interest, is prohibited in Islam, as it is considered unjust and exploitative. Unfortunately, many conventional travel insurance policies operate on an interest-based system, where the insurer collects premiums and invests them in interest-bearing accounts or other financial instruments that generate interest. This means that the insurer benefits from the interest earned on the premiums, which is considered a form of riba.

In contrast, Halal travel insurance and Car Insurance policies aim to avoid riba by investing premiums in Shariah-compliant investments that do not involve interest. This is important for Muslims who wish to adhere to Islamic law, as the Quran and Hadith strongly discourage riba and emphasize the importance of ethical and fair business practices.

The Quranic verses and Hadiths that speak out against riba are numerous. One well-known verse from the Quran states, “Those who consume interest cannot stand [on the Day of Resurrection] except as one stands who is being beaten by Satan into insanity” (2:275) . This verse emphasizes the severity of engaging in riba, and warns of the negative consequences in the afterlife. Similarly, a Hadith narrated by Abu Huraira states, “The Prophet, peace and blessings be upon him, said, ‘Avoid the seven grave sins.’ They said, ‘O Messenger of Allah, what are they?’ He said, ‘Associating others with Allah, magic, killing a soul which Allah has forbidden except by right, consuming interest, consuming the property of the orphan, fleeing on the day of the march, and slandering chaste women who are believers'” (Bukhari and Muslim).

Statistics show that the global Halal travel market is growing rapidly as more Muslims seek travel experiences that align with their values and beliefs. In fact, global halal tourism market holds a forecasted revenue of US$ 255.0 billion in 2022 and is likely to reach US$ 365.0 billion by the end of 2032. (source: Future Market Insights) . This underscores the importance of providing Halal travel insurance options that avoid riba and other prohibited practices.

2. Gharar (Uncertainty) in Travel Insurance

Gharar, or uncertainty, is another prohibited practice in Islam, as it involves too speculative or uncertain transactions. Unfortunately, many conventional travel insurance policies may involve gharar, as they often include ambiguous or unclear terms and conditions or may not provide coverage for certain events that are beyond the traveler’s control.

This uncertainty can be problematic for Muslims who wish to adhere to Islamic law, as the Quran and Hadith emphasize the importance of clarity, honesty, and transparency in business dealings. Islamic finance encourages the use of contracts that clearly define the terms and conditions of a transaction, so that all parties are aware of their rights and obligations.

One of the key Quranic verses that emphasizes the importance of clarity and honesty in business dealings is, “O you who have believed, do not consume one another’s wealth unjustly but only [in lawful] business by mutual consent” (4:29) . This verse emphasizes the importance of mutual consent and clarity in business dealings, and warns against engaging in unjust practices.

Similarly, a Hadith narrated by Abu Huraira states, “The Messenger of Allah, peace and blessings be upon him, said, ‘The buyer and seller have the option to cancel or confirm the deal until they separate. If they are truthful and clear in their transaction, their transaction will be blessed, but if they lie and conceal, the blessing of their transaction will be eliminated'” (Bukhari and Muslim) . This Hadith emphasizes the importance of honesty and clarity in transactions, and warns against engaging in practices that involve deception or ambiguity.

Takaful (Islamic Insurance) as an Alternative

Takaful, or Islamic insurance, is an alternative to conventional travel insurance that adheres to Islamic law and avoids practices prohibited in Islam, such as riba, gharar, and maysir. Takaful operates on a cooperative principle, where policyholders pool their funds to support each other in need. Here are some of the top benefits of Takaful and how they align with Islamic law:

The Quranic verses and Hadiths that support the principles of Takaful are numerous. One verse from the Quran states, “Help one another in righteousness and piety, but help not one another in sin and rancor: fear Allah: for Allah is strict in punishment” (5:2). This verse emphasizes the importance of mutual support and cooperation, but warns against supporting each other in sinful or harmful ways.

Similarly, a Hadith narrated by Anas bin Malik states, “The Prophet, peace and blessings be upon him, said, ‘None of you truly believes until he loves for his brother what he loves for himself'” (Bukhari and Muslim) . This Hadith emphasizes the importance of caring for others and supporting each other, which is a key principle of Takaful.

Statistics show that the global Takaful market is growing rapidly. In fact,   global takaful market size reached US$ 30.5 Billion in 2022. Looking forward, the publisher expects the market to reach US$ 54.9 Billion by 2028 (source: Research and Markets) . This underscores the increasing demand for Takaful and the importance of providing insurance options that are Shariah-compliant and aligned with Islamic values.

Halal Travel Insurance: Dos

Halal travel insurance offers a Shariah-compliant alternative to conventional travel insurance, which adheres to Islamic principles and avoids practices prohibited in Islam. Here are some dos of Halal travel insurance to ensure that you choose the right policy for your travel needs:

• Ensure the policy is Shariah-compliant: It is important to ensure that the policy you choose is Shariah-compliant and does not involve any prohibited practices, such as riba, gharar, or maysir. This can be done by researching the insurance provider and reviewing the terms and conditions of the policy to ensure that it aligns with Islamic law.
• Check the coverage areas and limitations: Before purchasing a Halal travel insurance policy, it is important to check the coverage areas and limitations to ensure that it meets your travel needs. This may include coverage for emergency medical expenses, trip cancellations, lost or stolen luggage, and other travel-related issues.
• Choose the right type of policy for your travel needs: Halal travel insurance policies come in various types, including single-trip, multi-trip, and annual policies. Choosing the right type of policy for your travel needs is important based on factors such as the length of your trip, the frequency of your travel, and the activities you plan to engage in.
• Understand the terms and conditions of the policy: It is important to carefully review the policy before purchasing to ensure that you understand the coverage, limitations, and exclusions. This will help you make an informed decision and ensure that the policy meets your needs and expectations.
• Ensure that the policy covers emergency medical expenses: One of the most important aspects of any travel insurance policy is coverage for emergency medical expenses. It is important to ensure that the Halal travel insurance policy you choose provides adequate coverage for medical emergencies, including hospitalization, doctor visits, and emergency medical transportation.

By following these dos of Halal travel insurance, you can ensure that you choose the right policy for your travel needs and align your travel experiences with your Islamic values and beliefs.

Halal Travel Insurance: Don’ts

Halal travel insurance is designed to provide Muslims with an insurance option that complies with Shariah law and aligns with their values and beliefs. However, there are certain things to avoid when choosing a Halal travel insurance policy. Here are some don’ts of Halal travel insurance:

• Avoiding policies that involve riba (interest): Riba, or interest, is prohibited in Islam, and it is important to avoid insurance policies that operate on an interest-based system. This means avoiding policies that invest premiums in interest-bearing accounts or other financial instruments that generate interest.
• Avoiding policies that support haram activities: It is important to avoid travel insurance policies that support haram activities, such as alcohol consumption, gambling, or other prohibited practices. This may include policies that provide coverage for certain types of activities or events that are considered haram.
• Avoiding policies with unclear terms and conditions: It is important to carefully review the terms and conditions of a Halal travel insurance policy before purchasing to ensure that they are clear and understandable. Policies with ambiguous or unclear terms may involve gharar, or uncertainty, which is also prohibited in Islam.
• Not relying solely on credit card insurance: While some credit cards may provide travel insurance coverage, it is important not to rely solely on this type of coverage. Credit card insurance may not be sufficient to cover all travel-related issues and may not be Shariah-compliant.

Related Post: Is disability insurance halal?

How to Choose the Right Halal Travel Insurance Policy

Choosing the right Halal travel insurance policy requires careful consideration and research to ensure that it meets your travel needs and aligns with your Islamic values and beliefs. Here are some steps to help you choose the right Halal travel insurance policy:

• Understanding your travel needs and risk factors: Before choosing a Halal travel insurance policy, it is important to understand your travel needs and the potential risks associated with your trip. This may include factors such as the length of your trip, the activities you plan to engage in, and the potential for medical emergencies or travel disruptions.
• Researching different Halal travel insurance providers: Once you have identified your travel needs and risk factors, you can start researching different Halal travel insurance providers. Look for reputable providers with a strong track record of providing Shariah-compliant insurance options.
• Comparing policies and premiums: Once you have identified potential Insurance providers, compare their policies and premiums to find the one that best meets your needs and budget. Look for policies that provide comprehensive coverage and are affordable and competitive in terms of pricing.
• Checking the policy’s coverage areas and limitations: Before purchasing a Halal travel insurance policy, check it to ensure it meets your travel needs. This may include coverage for emergency medical expenses, trip cancellations, lost or stolen luggage, and other travel-related issues.
• Reviewing the terms and conditions: It is important to carefully review the terms and conditions of a Halal travel insurance policy before purchasing to ensure that they are clear and understandable. This will help you make an informed decision and ensure that the policy meets your needs and expectations.

Know More: Is phone insurance haram?

Common Misconceptions about Halal Travel Insurance

Final thoughts.

Halal travel insurance provides a Shariah-compliant alternative to conventional travel insurance, which aligns with Islamic values and beliefs. By avoiding practices prohibited in Islam, such as riba, gharar, and maysir, Halal travel insurance offers a viable option for Muslim travelers who wish to ensure that their travel experiences align with their religious and ethical principles.

It is important for Muslim travelers to choose a travel insurance policy that aligns with their values and beliefs and provides comprehensive coverage for their travel needs. By researching different Halal travel insurance providers, comparing policies and premiums, and checking the coverage areas and limitations, travelers can find a policy that meets their needs and aligns with their Islamic values.

Travel Insurance Haram (FAQs)

Is working for travel insurance company halal.

Working for a travel insurance company is generally considered halal in Islam, as long as the company’s operations are lawful and do not involve any unethical practices. However, it is always important to carefully consider the nature of the job and ensure that it aligns with one’s personal values and beliefs.

Is travel insurance mandatory for Saudi Arabia?

Travel insurance is not mandatory for entry into Saudi Arabia. Still, it is strongly recommended to provide coverage for medical emergencies, trip cancellations, and other unexpected events that may occur during travel.

Is it haram to buy travel insurance in Islam?

Buying travel insurance is not inherently haram in Islam as long as the policy does not contain any provisions that go against Islamic principles, such as interest-based transactions or gambling. It is important to carefully review the terms and conditions of the policy before making a purchase.

Can I get travel insurance as a Muslim?

Yes, Muslims can purchase travel insurance to provide coverage for medical emergencies, trip cancellations, and other unexpected events that may occur during travel. Selecting a policy that aligns with one’s values and beliefs is important.

Is it permissible to get travel insurance before going on Hajj or Umrah?

Getting travel insurance before going on Hajj or Umrah is permissible as long as the policy does not contain any provisions that go against Islamic principles, such as interest-based transactions or gambling. It is important to carefully review the terms and conditions of the policy before making a purchase.

What are some alternatives to travel insurance in Islam?

Some alternatives to travel insurance in Islam include self-insuring by setting aside funds to cover unexpected expenses, relying on family or community networks for support in case of emergency, or seeking out specific types of coverage, such as medical insurance or trip cancellation policies.

Can a Muslim buy travel insurance for non-Islamic countries?

Yes, Muslims can buy travel insurance for non-Islamic countries to provide coverage for medical emergencies, trip cancellations, and other unexpected events that may occur during travel. Selecting a policy that aligns with one’s values and beliefs is important.

What are some tips for staying safe while traveling as a Muslim without relying on travel insurance?

Some tips for staying safe while traveling as a Muslim without relying on travel insurance include researching the destination ahead of time, taking necessary health precautions such as vaccinations, being aware of local customs and dress codes, and staying in contact with family or friends back home.

Which is better: individual or group travel insurance?

Individual and group travel insurance choices depend on personal preferences and needs. Individual policies may provide more tailored coverage, but group policies may be more cost-effective and convenient for those traveling with others. It is important to carefully review the terms and conditions of each policy before making a decision.

What are some aesthetically pleasing ways to showcase Islamic travel without promoting travel insurance?

Some aesthetically pleasing ways to showcase Islamic travel without promoting travel insurance include sharing beautiful photos and videos of Islamic landmarks, highlighting cultural experiences such as traditional food and art, and promoting eco-friendly and sustainable travel options.

Leave a Comment Cancel reply

Save my name, email, and website in this browser for the next time I comment.

Most searched terms

Enter your search terms.

Our powerful search provides results of a wide range of content types to provide you with relevant information.

Is Insurance Halal or Haram? Muslim Finance | Islamic Finance Guru

14 min read

Published: 31 May 2022

Updated: 25 August 2023

Ibrahim Khan

I suspect this is the most controversial article to appear yet on IFG.

Well, much of the opinions I hold on Islamic financial matters are the mainstream ones, but as I have studied the topic of insurance more, I have increasingly found myself switching position.

Below are my preliminary thoughts in favour of why insurance, of most kinds, should be considered permissible (halal).

Let me also add, for those of you who may not realise this, there are a minority of scholars currently alive and passed away who have held that insurance is halal. This may not be immediately obvious given how widespread the view is that insurance is haram, but it is important to point this out so that one doesn’t think that what is being put forward here is completely novel.

These scholars and academics include, Sh. Mustafa Zarqa, Sh. Ali AlKhafeef, and Nejatullah Siddiqi.

There are also some prominent modern scholars, but I would not want to attribute complex positions to them without studying with them first, and it is best left to them to articulate their own positions should they feel the need to.

(Be sure to check the follow-up article on "Is life insurance haram or halal?" )

The Basic Premise

The basic premise I want you all to keep in mind is that Islam and the fuqaha (legal jurists) do allow us to mitigate risk by pooling our wealth and paying out to those who lose out from an uncertain loss.

Traditionally, in Arabia if a tribesman needed to pay blood money (a large sum) to someone, then the entire tribe would chip in a small amount to make up the sum. They did this as a charitable gesture so no one of their number would be overcome by the massive payment. Relating to this, fuqaha allow takaful insurance – which is a form of cooperative insurance along these lines.

More on this later, but remember: the basic principle of mitigating loss by pooling wealth is uncontroversially halal. The debate is on how it is done, i.e. the conditions and structures involved.

The argument against conventional insurance is that it involves riba (interest), gharar (uncertainty), and maysir (gambling).

In this article I will focus on the strongest and most central of these objections: gharar.

For the purposes of this article let us take “insurance” to mean common types of insurance like car insurance, house insurance, pet insurance, medical insurance, and business insurance (as opposed to more complicated setups such as life insurance or reinsurance).

Islam forbids transactions in which there is gharar.

The argument against conventional insurance goes that this is a gharar-based transaction where something uncertain is being bought in exchange for a premium – so is not allowed. You are uncertain if you will ever have an accident after you buy car insurance and most people don’t and lose all their money for no return each year.

Takaful or cooperative insurance on the other hand is allowed as it is fundamentally a gift to the pot – and so – even though it looks structurally identical to conventional insurance – in fact from a fiqhi perspective because it is a gift, it is okay to get back more or less than that which you put in. So, the guy who pays his fellow tribesman a contribution for the blood money due is doing it not as a bilateral contract but as a gift out of the goodness of his heart.

But having considered the arguments based on gharar that forbid insurance, I have come to the conclusion that conventional insurance is not the kind of gharar-based transaction the ahadith about gharar are trying to forbid. Let me show you why.

These are a flavour of the hadith dealing with gharar:

• Imam Muslim records in his Sahih: “On the authority of Abu Hurairah who said that the Messenger of Allah (peace and blessings of Allah be upon him) forbade ‘sales of a speculative nature’ (bai al-gharar).”
• Tirmidhi records the Prophet said “Do not sell that which you do not have.”
• Al-Bukhari and Muslim record “On the authority of ibn Umar who said that ‘the Messenger of Allah (peace and blessings of Allah be upon him) prohibited the sale of fruits until their ripeness and freedom from disease were apparent. He prohibited both the seller and the buyer.’”
• Ahmad and Ibn Majah record “The Prophet (PBUH) has forbidden the purchase of the unborn animal in its mother’s womb, the sale of the milk in its udder without measurement, the purchase of spoils of war prior to their distribution, the purchase of charities prior to their receipt, and the purchase of the catch of a diver.”
• Ahmad records “the Prophet forbade the purchase of a runaway slave.”
• Ibn Al Athir Al Jazaria records “The Prophet forbade the selling of fruit before it is known to be of acceptable quality.”
• Al-Bukhari and Muslim record the Messenger of Allah (PBUH) has allowed bay’ al-araya in quantities less than five awsaq (equivalent to approximately 653kg), meaning the sale of fresh dates on the palm in exchange for aged dried dates.
• Aisha narrated “I said “Oh Messenger of Allah, people borrow bread and yeast from their neighbours, and they return more or less, is this permissible?” He said: “There is no harm in this; it is a common practice of the people, and the increase or diminution is not what they intend.” (Abu Bakr Ash-Shafi from Aisha, mentioned in Zuhayli’s “Financial Transactions in Islamic Jurisprudence, p.254); and in another narration from Muadh ibn Jabal , “so take the larger amount and give the smaller, or take the smaller and give the bigger, the best among you is the one who is best in paying back his debts.”
• Muslim records “Ibn ‘Abbas (Allah be pleased with them) reported that when Allah’s Prophet (may peace be upon him) came to Medina, they were paying one and two years in advance for fruits, so he said: Those who pay in advance for anything must do so for a specified weight and for a definite time.”

From (1), we can see that trades involving gharar are not allowed, as we have already discussed. From hadiths (2)-(6), we can piece together why that is the case: in each of these instances the thing that is being driven at is to have a clear, unambiguous contract where there is no room for dispute down the line. Furthermore, the harm of allowing outweighs the benefit of allowing, so the conclusion is not to allow.

My argument is that conventional insurance is not such a contract as it is sufficiently clear. More on this below. But let’s label this the negative argument.

Let’s look at hadith (7)-(9): these are just some of the hadith where the Prophet allowed for some uncertainty in the contract to make it easy for people and businessmen, or because it was a custom of the people, and where the benefit of allowing outweighed the harm.

Thus, we can clearly see Islam does countenance gharar in money matters – Bai’ salam and takaful are just two examples. As such, there are independent positive arguments for why conventional insurance is beneficial and customary enough to fall among such categories and not the one of prohibited gharar. Let’s label this the positive argument.

Finally, I find that when one examines modern-day examples of transactions deemed halal that involve a degree of gharar, e.g. takaful insurance, then one struggles to pinpoint how exactly these deemed-halal examples are different to conventional insurance which is deemed haram. Let’s call this the takaful argument .

The Negative Argument

The fundamental issue is whether the thing being bought in an insurance contract is tangible and certain enough for the contract to be deemed valid. The Prophet forbade one from buying a diver’s catch until he’d actually got his catch, come back, and started selling tangible fish. The reason was that it was unclear what exactly is being bought or sold. The object of the contract must be certain.

But let’s imagine the modern day, where big data and historical statistics allow us to model very accurately what the average catch will be. In this situation, I don’t see a problem for Tesco, say, entering a year-long contract with a fishing company, to provide it whatever it catches, with the understanding that on average, x amount is what is expected.

Similarly, in insurance, certainly from an insurance company’s perspective, big data allows a lot of certainty as to where they stand. The trickier question is, do consumers enjoy the same level of certainty? Well, a competitive market certainly helps. It helps efficiently price the good that customers are purchasing: “security” or “peace of mind”. This ensures that they are not exploited.

When we think about “security” or “peace of mind” they may sound like fluffy and intangible objectives. But let’s analogise with a security guard. He is paid a wage for providing security. What does that look like? It looks like him standing around waiting for the one day in the year when he needs to earn his keep. The rest of the time he is just on stand-by. But he is being paid for is being on stand-by, being available, and dealing with any other related requests you might have.

Similarly, an insurer contracts to have available people to speak to you, provide you with documents should you need them, and to do checks whenever you claim. They are not being called upon to deliver money every day, but they are providing some quite tangible services that are clear and understandable.

Further analogies can be made with estate agents who provide a service arrangement for landlords: if the landlord’s property ever needs repairing, the estate agent will sort it out. Or how about the law firm who contracts to provide all the legal requirements of a company?

In both these cases the estate agent and the law firm expect to make a profit overall given that they will have a roster of such clients. One or two may be costly, but the other ones won’t require much work and the estate agent/law firm will be profitable in the end. The parallels between this arrangement and a car or home insurance contract where the insurer becomes responsible for paying for any damage/theft that may happen, are striking.

In short, insurance is a sufficiently clear contract, certainly in our day and age.

The Positive Argument

Insurance gives certainty – this is incredibly important to the business world, but it is also incredibly important for the day to day lives of people. The Prophet specifically allowed for bai salam (for farmers to sell in advance their crop so that they may raise money now) as it genuinely helped people live their lives in a more stress-free way (see hadith 9 above). He weighed up the uncertainty caused by the transaction against the benefit that came from it, and clearly he decided that the benefit outweighed the harm.

I also find hadith (7) and (8) fascinating, not because they are precisely applicable here, but because they indicate that sometimes an unequal exchange in transactional matters is acceptable. In the case of (7) this helped ease business in Arabia where the primary agriculture was in dates, while in the case of (8) a debt was allowed to be paid back slightly more or less. Standardly, one must return a debt exactly, and not even add a gift on for fear of it becoming considered interest. However, maintaining community ties trumps all of that.

And notice how in (7), the Prophet sets quite an easy bar for what is allowed. 650kg is a lot of dates and the Prophet allowed araya trades under that amount. He could have set the amount at 10kg, say, but the instinct was one of making ease for business and life, not hardship.

Insurance is centrally important for businesses to maintain a steady ship from month-to-month and to protect against unexpected crises. It helps makes large deals happen as well, as insurers will often be involved in underwriting the risk of a transaction falling through, or acting as guarantors for parties. These are all important lubricants to our economy. Further, insurance creates large pools of wealth which are then invested throughout society – again, a vital element for a healthy economy.

There are a number of other benefits to insurance, some of which are excellently outlined in this article . In a nutshell, the point is that insurance, while it may have some degree of gharar in it, it is still justifiable given that there is a great benefit to it, and that our Shariah historically does allow for some gharar-heavy transactions if the benefit outweighs the harm.

The Takaful Argument

The blood money mutual insurance concept was the inspiration for coming up with a takaful cooperative insurance model for our time. The basic concept is that a bunch of people pool their money together not-for-profit to mutually cover each other’s backs. I like the cooperative model. If one exists I encourage people to use that – as at heart it is much more of a charitable and communal venture.

Fundamentally, a takaful model is identical to a conventional model in the important elements of the structure.

Both organisations aim to make a surplus, pay their employees and managers, pool participant cash and then pay out in the cash of a claim. There is also an element of reciprocity akin to a commutative contract in a takaful model. One isn’t just donating the money and forgetting about it. One is donating with the expectation that the takaful pool will pay out in the case the donor needs it.

There is actually a quasi-commutative contract in place here as well (as there is a quasi-obligation on both parties). [Arguments that the object of the contract is indeterminate in conventional insurance, and therefore it is haram (see negative argument above), might face counterarguments that actually a classic takaful model is not a pure hiba (gift) and as such there is a quasi-contract and it has an object and this object is as indeterminate as the one in the conventional model – and so either both are haram or both are halal.]

Secondly, if we go back to the blood money situation from which takaful is often analogised with – the money wasn’t actually pooled and then invested by the tribe. The tribe would pay up as and when a calamity happened. So in a way, it was a purer form of hiba as there was no quasi-contract between tribesmen. But that is not practicable these days in a non-tribal and atomistic society.

So, the takaful model allows for people to pay in beforehand. This of course creates an expectation – and it is that expectation that is the object. So the point I’m driving at is, the takaful industry has already compromised somewhat on the pure blood money setup for practicality purposes, and in so doing made itself near identical with a conventional insurer. If this point is conceded, then really there are few substantive other differences between the two models.

Yes, the conventional model can arguably be seen as more profit-driven, won’t pay out any profits to participants, and charge higher fees. But in reality, viewing things from the 21st Century lens where we live in a world of footloose capital, international finance and financial institutions that straddle multiple continents, and a population that is almost unimaginably larger than it was, say, a thousand years ago, we need insurance companies of considerable size to be able to make things work, and this requires an incredible amount of effort. To expect someone to handle all this without a profit motive is highly optimistic. And the takaful companies that exist – they are all profit-making as well.

Major insurance providers are the ones who are setting them up through Islamic windows and funding them (indeed, given the enormous capital requirements for insurance companies, large insurers are often the only entities that can help start takaful companies) and they will make money off them just like their conventional insurance operations. The difference is only in the structuring. The intention to make profit is exactly the same. They price risk and meet shortfalls in funds just like conventional insurers, though in a pure takaful model presumably one would price contribution by how well-off one is (as it is a gift) and if there is a shortfall one would have a whip-round from the other members.

Finally, the Cooperative company in the UK is a fantastic model and in my research I learnt more about them and actually joined up. They pay back profit to their members and give discounts to their members in their stores. But interestingly, they were doing terribly until they became increasingly corporatised and commercialised, and now they’re running pretty effectively. Make of that what you will!

Concluding Remarks

This is the longest article we have published on IFG so far – and it is so because the argument made requires more of a defence as it is a minority position. However, please do note that this article is merely a summary of the topic and my views; a fuller treatment would extend into the tens of thousands of words. Each of those hadith mentioned, for example, have had countless pages written on them over the centuries, and to analyse them fully requires a small book, not to mention all the other hadith I have not even mentioned.

A few further points to note in brief:

• Takaful is definitely halal and cooperative insurance is in my view pretty much equivalent with the exception of the next bullet point
• Insurers invest in haram areas so to the extent you’re insuring with a certain return at the end such as life insurance, I need to do further thinking on this but preliminarily, the same rulings apply for any fund that you invest in that has haram holdings (see this article .)
• Where you’re buying insurance linked to some kind of damage (car insurance) as opposed to any investing motive, preliminarily I don’t see any issues with this as you are contracting with the insurer, and what they independently do with their money is not your concern
• It may be that life insurance, as opposed to other kinds of insurance, has particular issues with it – I can’t pass comment on that until further research
• With regards to compulsory insurance like car insurance or employers’ liability insurance – this is of course fine to get from a Shariah perspective even if all my arguments above are wrong

And, as I said at the start, my thinking on this topic is still maturing as I read deeper into it. I would consequently be interested in hearing other people’s views, thoughts, and critiques of what has been written here so that we can deepen each other’s knowledge.

Please remember to subscribe to our email list (box on the top right).

Also, while you’re here and thinking about planning your finances after you pass away for your loved ones, you should also think about sorting out your Islamic will. On average people misplace assets or lose through tax inefficiency up to £9700 when they die without a will. On top of that as a Muslim having a will is super important so that your inheritance is separated up the Islamic way. So if you’re a UK resident, then please do check out IFG Wills and get your Islamic will sorted within 30 minutes.

Further resources:

• https://www.amjaonline.org/the-question-of-insurance-part-i/  – An excellent summary of the conventional arguments against insurance
• https://practicalislamicfinance.com/wp-content/uploads/2017/01/dissent-of-mustapha-al-zarqa.pdf
• https://archive.org/details/FinancialTransactionsInIslamicJurisprudenceVolume1
• Gharar in contracts and and its effects in modern applications – Dr. Muhammad Al-Ameen Ad-Dareer [Arabic]
• The Insurance System – its reality and a legal opinion on it – SH. Mustafa Zarqa [Arabic]
• Radd al-Muhtaar ala al-Durr al-Mukhtaar Sharh Tanweer al-Absaar – Muhammad Ameen ibn Abideen [Arabic]
• http://www.jamaalzarabozo.com/audio/insurance.pdf – Sh. Zarabozo article on Insurance

Ibrahim is a published author and Islamic finance and investment specialist. He is currently the CEO of Islamicfinanceguru and its sister investment company Cur8 Capital. He holds a BA in Philosophy, Politics, and Economics from the University of Oxford, an Alimiyyah degree from the Al Salam Institute, and an MA in Islamic Finance. Prior to setting up Islamic Finance Guru, Ibrahim was a corporate lawyer. He trained at Ashurst LLP and then specialised in private equity and venture capital funds at Debevoise & Plimpton LLP. He holds a Diploma in Investment Advice & Financial Planning & Certificate in Investment Management. Publication: Halal Investing for Beginners: How to Start, Grow and Scale Your Halal Investment Portfolio (Wiley) Ibrahim is a published author and Islamic finance and investment specialist. He is currently the CEO of Islamicfinanceguru and its sister investment company Cur8 Capital. He holds a BA in Philosophy, Politics, and Economics from the University of Oxford, an… maxLength" x-text="isCollapsed ? 'Read less' : 'Read more'" class="underline transition-all duration-300 link-color text-theme-green decoration-transparent hover:decoration-theme-green underline-offset-4">Read More

Related Articles

Buying a house in 2024 as a Muslim: It’s better but it’s not great 

23 July 2024 6 min read

Planning your finances – budgeting, saving, investing – IslamicFinanceGuru

26 June 2024 13 min read

13 Halal Jobs That Pay 100k+

27 February 2024 15 min read

• Discover Islam
• Quran Recitations

• Fiqh of Transactions and Inheritance
• Contemporary Financial Issues
• Insurance and pensions

Purchasing travel insurance for fear of expected detention

Asslamu alaykum, we have have family trip booked for eid to go back home to visit family who me,my wife and kids havent seen for 10 years. I am worried as the trip costs alot of money and i am always stopped and detained by anti terror police every time i travel. the new laws introduced this year mean it is even worse now. I know insurance is haram, but would like to know if under these circumstances i am permitted to take out travel insurance to cover me in case i am detained and miss my flight? Jazakallahu khairan

All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad, sallallaahu ‘alayhi wa sallam, is His slave and Messenger.

Since the said insurance is optional and you want it for fear of something expected, then it is not permissible to subscribe to it if it is the commercial type, which is based on risk and chance as stated in Fatwa 81425 .

It does not become permissible for you to purchase this insurance based on what you have mentioned. So, you should place your trust in Allaah and depend on Him to keep you from harm and protect you from what you fear.

You should know that what Allaah has is only obtained by obeying Him and not by disobeying Him. Allaah says (what means): { And whoever fears Allaah – He will make for him a way out, and will provide for him from where he does not expect. And whoever relies upon Allaah – then He is sufficient for him. Indeed, Allaah will accomplish His purpose. Allaah has already set for everything a [decreed] extent. } [Quran 65:2-3]

Allaah Knows best.

Related Fatwa

Insurance on Things Sent by Mail

Works in a school and has to choose health insurance, senile mother receives pension and issue of inheritance of her deceased husband, can’t find cooperative insurance in hong kong, doctors buying professional indemnity insurance, buying takaaful (cooperative) insurance for a necessity, government employee wants to avail of medical insurance, black color is not condition in clothes of muslim women, search fatwa.

You can search for fatwa through many choices

Fatwa Subject

• The Noble Quran
• Noble Hadeeth
• Islamic Creed
• Religions, Sects and Da'wah (Call to Islam)
• Seerah (Biography of the Prophet)
• Merits and Virtues
• Etiquettes, Morals, Thikr and Du'aa'
• Tahaarah (Ritual Purity)
• Salah (Prayer)
• Funeral: Prayer and Rulings
• Zakaah (Obligatory Charity)
• Siyaam (Fasting)
• Hajj and 'Umrah
• Women and Family
• Foods, Drinks, Clothes and Adornment
• Jinaayaat (Criminology) and Islamic Judicial System
• Islamic Politics and International Affairs
• Medical Issues, Media, Culture and Means of Entertainment
• Miscellaneous
• OTHER ISSUES

• Islamic Songs

Special Folders

• Hajj & Umrah
• Xmas & New Year's
• Sacred Months
• Inheritance
• Prayer Times
• Calendar Converter

Copyright © IslamWeb 2024. All rights reserved.

Finance & Trade Fiqh Halal and Haram

Travel Insurance

In many countries, public healthcare is not freely available. Hence when travelling abroad, should a visitor require medical assistance, this will incur costs to the person. In some cases, these costs can be considerably expensive. Further, should something like medical repatriation be required to the visitor’s home country, this can run into hundreds of thousands of pounds, with charter flights and the costs of medical professionals such as doctors and nurses. Therefore, is there any leeway for taking out medical or travel insurance to cover this eventuality considering the costs that could be incurred?

بسم الله الرحمن الرحیم

As explained in an earlier answer on medical insurance in the UK , the default position on insurance is impermissibility due to gharar (uncertainty) and qimār (gambling) therein. However, in light of the reasons outlined, travel insurance is excused based on need. If there is a not-for-profit firm that provides this service, this should be used.

قال ابن أمير حاج في التقرير والتحبير (٣/٢٦٤) وابن نجيم في الأشباه والنظائر (ص ٧٣): الضرورات تبيح المحظورات. وقال المفتي محمود حسن الجنجوهي في فتاويه (٢٤/٤٥٤) وأقره شيخنا المفتي أحمد الخانفوري في فتاويه (٣/٣٧٢): سوال: موجودہ زمانہ میں بیمہ کرانا اپنا یا دوکان اور موٹر وغیرہ کا کیسا ہے؟ الجواب : بیمہ میں سود بھی ہے اور جوا بھی، یہ دونوں چیزیں شرعا ممنوع ہیں، لیکن اگر کوئی شخص ایسے مقام پر اور ایسے ماحول میں ہو کہ بغیر بیمہ کرائے جان ومال کی حفاظت ہی نہ ہوسکتی ہو یا قانونی مجبوری ہو تو بیمہ کرانا درست ہے۔

Allah knows best

Yusuf Shabbir

18 Muḥarram 1445 / 5 August 2023

Approved by: Mufti Shabbir Ahmed and Mufti Muhammad Tahir

You May Also Like

Workplace Medical Insurance

Private healthcare and Medicare surcharge in Australia

Medical Insurance

ISLAMIC TRAVEL INSURANCE 2024

Travel takaful halal travel insurer holidays cover.

An Islamic travel insurance in 2024 is by definition an financial guarantee that covers an insured against the risks associated with a trip or a trip, and at the same time complies with the framework of Islamic insurance policies

The travel Takaful is a halal insurance cover that does not use the conventional framework of travel insurance, in which the insurance premiums paid by the Muslim insurer land in speculative financial funds that are contrary to Sharia law.

Halal travel insurance is a way to supplement the ethics of a trip especially if it is halal holidays for example, otherwise why opt for halal trips or make a sacred pilgrimage if one uses insurance that speculates on markets in investments that are not ethical.

Islamic travel insurance in 2024 covers the following risks: repatriation in case of illness or accident, loss of luggage, hospitalization and medical expenses.

HALAL TRAVEL INSURANCE

Islamic travel insurance halal travel insurance.

A halal travel insurance is defined by an Islamic financial protection or guarantee that covers Muslim travelers during their holidays or pilgrimages against the risks they may face.

Halal travel insurance is takaful vacation insurance that is based on Islamic finance principles and is different from conventional insurance.

A halal insurance for the holidays is logical to take because what could be more contradictory to take a halal therefore Islamic holidays in insurance by an insurer who invests the funds in projects going against Islam.

Islamic travel insurance operates on the basis of Islamic finance or takaful and is approved under Islamic law.

KUWAIT AIRWAYS    AIR ASIA    RAYANI AIR    AIR CHINA    AIR SENEGAL    AIR INDIA    EGYPT AIR    EMIRATES    ETIHAD AIRWAYS    GULF AIR    AIR ALGERIE    LIBYAN AIRLINES    MALAYSIA AIRLINES    QATAR AIRWAYS    ROYAL AIR MAROC    SAUDI AIRLINES    SINGAPORE AIRLINES    SYRIAN AIR    THAI AIRWAYS    TURKISH AIRLINES    PAKISTAN AIRLINES    IRAN AIR    BIMAN    JAPAN AIRLINES    AIR FRANCE    LUFTHANSA    CHINA SOUTHERN    HALAL HOTEL    HALAL CRUISE    VACATION CLUB    HALAL WEEKEND    HALAL SPA    HONEYMOON    CAMPING    SKI RESORT    LUXURY HOLIDAYS    SWIMMING POOL    HALAL BEACH    TRAVEL INSURANCE    UNITED-KINGDOM HOTEL    CROATIA    HALAL ANDALOUSIA    TRAVEL AGENCY    VACATION STAY    ISLAMIC TRAVEL    HALAL BED AND BREAKFAST    TURKEY    MALAYSIA    MOROCCO    CHINA    INDIA    FRANCE    THAILAND    EGYPT    CANADA    ALGERIA    BELGIUM    SWITZERLAND    SPAIN    RAMADAN HOLIDAYS    TUNISIA    USA    LUXURY HALAL RESTAURANT    AUSTRALIA    ISLAMIC TOURISM    NEW-ZEALAND    SOUTH-AFRICA    LEASING WITHOUT RIBA    USA LOAN WITH NO RIBA    CANADA LOAN WITHOUT RIBA    GARUDA INDONESIA   

• Personal Corporate Investor Relation

• Salvage Auctions

Follow us on:

Download app:, travel insurance.

Have a worry-free holiday with low cost QIIG travel insurance. Allow you to switch off and enjoy abroad.

• Our Promise
• Submit Claim

Our Travel Plans:

Visit Qatar

The Visitors plan is one of our insurance policies that we created specifically for visitors coming to the Qatar. The policy is designed to cover any visitor’s health insurance worries and can be purchased before departure from any worldwide country.

Travel Schengen

Comprehensive travel insurance, which is compulsory if you’re travelling to one of the Schengen countries.

Travel MENA

Comprehensive travel insurance, which is compulsory if you’re travelling to one of the Middle east & African countries.

Travel Worldwide

Travel Insurance product specifically designed to suit the needs of individuals & families while travelling for business or pleasure to any part of world excluding USA and Canada.

Travel Worldwide Plus

Travel Insurance product specifically designed to suit the needs of individuals & families while travelling for business or pleasure to any part of the world.

What's covered:

Overseas Emergency Medical Expenses & Hospitalization.

Loss of Personal Baggage, Personal Money & Passport during your trip.

Baggage Delay.

Travel Delayed Departure.

Liability for harm or damage you accidentally cause

24-hour emergency assistance

Emergency medical evacuation & repatriation in case of illness or accident.

What's covered more:

Emergency dental care.

Repatriation of family members.

Repatriation of mortal remains.

Travel of one immediate family member.

Emergency return home following death of a close family member.

Loss of credit card.

Our Promise to you:

Business or Pleasure

Designed for both business and holidays so you can rest assured that you’re covered.

Worldwide cover

Heading near or really far? That’s fine. Our cover is truly worldwide for your travel needs.

Cashless medical claim

enjoy cashless medical outpatient claim and worldwide emergency assistance.

24 x 7 Assistance

Emergency helpline is open 24/7 to assist you when you need us.

Smart questions you may be asking: View all

Travel insurance claiming is a very easy process. To claim your policy, you will need several documents. You can submit these documents to your insurer and get your claim settled. Following are a few documents that are required to file a travel insurance claim: • Claim form • Policy documents • ID proof • Travel trip tickets • Discharge card and other hospital bills

Your medical coverage will depend on the plan you choose. We offer different plan options and each of them offers varying coverage amounts for medical emergencies.

Not all our travel insurance plans offer the hospital allowance benefit. Therefore, you will be entitled to receive a hospital daily allowance only if your plan offers. This daily hospital allowance will be provided only if the insured is admitted for a period exceeding 48 hours and is limited to a maximum of 20 days of hospitalization.

A travel assistance partner is a person who primarily helps in medical emergencies during travel. A travel assistance partner is a term that is used for an individual who is tasked with assisting you in medical emergencies during travel. A travel assistance partner is crucial in bringing medical attention to your aid when you need it.

The loss of your passport can result in significant financial losses. You might have to extend your stay, pay express passport processing fees, re-schedule your flights, etc. Keeping this in mind, our travel insurance policy can offer up to $ 200 in case you lose your passport on your trip.

No, our travel insurance policies do not cover pre-existing illnesses. So, when you are travelling outside the country, you will not be able to use your travel insurance policy to get coverage for a pre-existing medical condition.

Claims Services

No need to visit a Claims Office to file your claims! Our Online system is ready to help round the clock, call 44658888 or WhatsApp 44658899 for all inquiries related to your claims.

Step 1: Report incident You report the incident, with the required documents.

Step 2: Claim assessment Once you report the claim and submit your documents, we can start your claim process. We record details of the incident, assess your case and email you with guidance on the next steps. Depending on the loss, we might need to come to review the damages in person.

Step 3: Receive claim reference number Once the claim is opened, within a couple of days you will also receive an SMS with a claim reference number. Use this claim reference number to track the status of your claim throughout the process.

First thing’s first. Make sure you have all of the right details and documents ready, so you can easily report the incident to us. Depending on what you are submitting a TRAVEL INSURANCE claim for, there are different requirements you will need in order to fill out your claim form. Please refer to your policy’s terms and conditions for complete details.

For travel and medical-related emergencies anywhere in the world, you can contact the Assistance company stated in your schedule/certificate. If the claim is regarding your flight or baggage: •Policy number •The flight details •Estimated value of lost items •Compensation amount from the airline, if any

If the claim is regarding your travel documents: •Policy number •Details of the travel documents, including time and date lost •The name of the authority you reported it to •Cost of replacing the lost documents

If the claim is regarding your accident or medical expenses: •Policy number •Details of the accident or illness, including time and date •Police report and station name, in the case of an accident •Doctor and hospital name, in the case of illness

To get in touch with us about any Travel claims questions, email us at [email protected] and we will be happy to help you

Phone: 44658888

Whatsapp: 4465 8899

Online: Submit your Travel claim online.

• Office of the Mufti

Religious Guidance on Purchase of Conventional Insurance Schemes for Haj Pilgrims

1. The Office of the Mufti (OOM) received a question from the Haj Services Strategic Unit (HSSU) on the ruling of having sufficient insurance coverage whilst traveling to Saudi Arabia to perform Haj and Umrah pilgrimages. Despite the availability of the takaful protection schemes, the coverage provided by these protection schemes may not be adequate should they contract COVID-19 whilst performing their Haj or Umrah. Currently, only conventional insurance companies offer full coverage for those who have contracted COVID-19.

Ensuring safety and welfare by having insurance coverage

2. The Shariah places great emphasis on ensuring Muslims’ welfare. 1  On this basis, when the pandemic had just begun, and COVID-19 was spreading rapidly throughout the world, travelling was not advisable. 2  In fact, the Fatwa Committee in 2020 has decided that the Haj for that year has to be deferred to the following year because the conditions that make Haj obligatory such as the ability and well-being of the individual who wishes to perform Haj cannot be fulfilled. 3  However, if the individual still needs to travel such as performing Haj, all additional safety steps should then be taken such as buying travel insurance as it is a necessary undertaking to assure one’s safety and welfare. Currently, no takaful company provides schemes with full and comprehensive coverage for travelers during pandemic.

3. If there is a need to obtain coverage from conventional insurance to protect oneself, the Fatwa Committee in 1988 viewed that purchasing conventional insurance is allowed. 4

4. Scholars such as Sheikh Mustafa al-Zarqa’ 5  and Dar Ifta’ al-Misriyyah 6 are of the opinion that purchasing conventional insurance is permissible, as it is a form of contract that is new ( Aqad Jadīd ) that the scholars of the past did not discuss. Generally, the purchase of insurance is allowed, as long as it does not contain any forbidden elements, 7  based on the principles of Islamic jurisprudence ( Usul Fiqh ) that permissibility is the origin of any contract: 8

الأصل في العقود والشروط: الجواز والصحة ولا يحرم منها ويبطل إلا ما دل الشرع على تحريمه وإبطاله

Which means: “The general practice is that a contract and its conditions are valid as long as it does not contain any forbidden elements that invalidate it.”

5. In 2002, MUIS had issued a fatwa that encouraged Muslims to purchase Islamic insurance, or takaful. 9 However, it does not mean that Muslim are not allowed to purchase insurance from conventional company, especially in a specific situation which we are currently facing. This is in accordance with the methodology of Islamic jurisprudence ( Fiqh ): 10

إذا بطل الأصل يصار إلى البدل

Which means: “When the original is difficult to work with or no longer valid, proceed with the alternative.”

6. This matter was also discussed in the 181 st Meeting of the Shariah Advisory Council of Bank Negara Malaysia and stated in the Decision of the Shariah Advisory Council of the Securities Commission Malaysia, indicating there is a flexibility to opt for conventional insurance if the takaful insurance company is unable to meet the coverage requirements or if coverage is not offered for a particular sector. 11

7. Based on the above considerations, the Office of the Mufti is of the view that the purchase of conventional insurance for those travelling during the COVID-19 pandemic is a necessity, and it is thus permissible for those who manage the pilgrims’ affairs to obtain adequate insurance coverage for future pilgrimages, in order to ensure their welfare is taken care of in the face of possible infection whilst travelling overseas.

4 May 2022 OFFICE OF THE MUFTI ISLAMIC RELIGIOUS COUNCIL OF SINGAPORE (MUIS)

[1] Aḥmad al-Raysūnī, Naẓariyyah al-Maqāṣid ‘inda al-Imām al-Shāṭibī , (Al-Dār al-‘Alamiyyah li al-Kitāb al-Islāmī), 19.

[2] Based on the hadith of Nabi s.a.w. that ordered those living in plague-stricken areas not to leave those areas, and the order for those who are well, not to enter plague-stricken areas. Please refer: Al-Naysabūrī, Muslim bin al-Ḥajjāj, Ṣaḥīḥ Muslim , hadith no. 2219.

[3] Fatwa Muis tahun 2020. https://www.muis.gov.sg/officeofthemufti/Fatwa/Malay-The-deferment-of-Hajj-2020

[4] Fatwa Muis Decision 24/8/1988. https://www.muis.gov.sg/officeofthemufti/Fatwa/Malay-Skim-Insuran-berkumpulan .

[5] Muṣtafā al-Zarqā’, Niẓām al-Ta’mīn – Ḥaqīqatuh wa al-Ra’yu al-Shar ‘ī Fīh , 13.

[6] http://www.dar-alifta.org/Home/ViewResearchFatwa?ID=33&title=%D8%A7%D9 %84%D8%AA%D8%A3%D9%85%D9%8A%D9%86%20%D9%88%D8%A3%D9%86%D9%88%D8%A7%D8%B9%D9%87

[7] Dār Iftā’ al-Miṣrīyyah, Mawsū’ah al-Fatāwā al-Mu’aṣṣalah , 3:335.

[8] Ibn Taymiyyah, Majmū ‘ al-Fatāwā , 29:132.

[9] Fatwa Muis Decision 16/5/2002.

[10] Majallah al-Aḥkām al-‘Adliyyah , 21.

[11] Mesyuarat Majlis Penasihat Shariah (MPS) Bank Negara Malaysia ke-181, 2-3; Keputusan Majlis Penasihat Shariah Suruhanjaya Sekuriti Malaysia, 72.

Advisory on Depiction of Prophets in Movies

Advisory on Kuda Kepang Performances

Advisory on Multi-Level Marketing (ENGLISH)

Advisory on Yoga Practice (ENGLISH)

Advisory on Guide Dogs (ENGLISH)

H1N1 (ENGLISH)

Nuzriah (ENGLISH)

Guidance For Elduladha Takbir (MALAY)

Advisory on Guide Dogs (MALAY)

H1N1 (MALAY)

Malay Nuzriah

• Search Search Please fill out this field.
• Personal Finance

What Is Takaful Insurance and How Does It Work?

Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia.

Investopedia / Michela Buttignol

What Is Takaful?

Takaful is a type of Islamic insurance wherein members contribute money into a pool system to guarantee each other against loss or damage. Takaful-branded insurance is based on sharia or Islamic religious law, which explains how individuals are responsible to cooperate and protect one another. Takaful policies cover health, life, and general insurance needs.

Takaful insurance companies were introduced as an alternative to those in the commercial insurance industry, which are believed to go against Islamic restrictions on riba (interest), al-maisir (gambling), and al-gharar (uncertainty) principles—all of which are outlawed in sharia.

Key Takeaways

• Takaful is a type of Islamic insurance wherein members contribute money into a pool system to guarantee each other.
• Takaful-branded insurance is based on sharia or Islamic religious law and covers health, life, and general insurance needs.
• Any claims made by participants are paid out of the takaful fund.

Understanding Takaful

All parties or policyholders in a takaful arrangement agree to guarantee each other and make contributions to a pool or mutual fund instead of paying premiums. The pool of collected contributions creates the takaful fund. Each participant's contribution is based on the type of coverage they require and their personal circumstances. A takaful contract specifies the nature of the risk and the length of the coverage, similar to that of a conventional insurance policy.

The takaful fund is managed and administered on behalf of the participants by a takaful operator, who charges an agreed-upon fee to cover costs. Much like a conventional insurance company, costs include sales and marketing, underwriting, and claims management.

Any claims made by participants are paid out of the takaful fund and any remaining surpluses, after making provisions for the likely cost of future claims and other reserves, belong to the participants in the fund—not the takaful operator. Those funds may be distributed to the participants as cash dividends or distributions, or via a reduction in future contributions. 

An Islamic insurance company operating a takaful fund must operate under the following principles:

• It must operate according to Islamic cooperative principles.
• A reinsurance commission may only be received from or paid out to Islamic insurance and reinsurance companies.
• The insurance company must maintain two separate funds: a participant and policyholder fund, and a shareholder fund.

Special Considerations

According to Allied Market Research, the global takaful insurance market was valued at $24.85 billion in 2020 and is projected to reach $97.17 billion by 2030, growing at a CAGR of 14.6% from 2021 to 2030.  

Since 60% of the global Muslim population is comprised of young Muslims—less than 25 years of age—this demographic can represent a sizeable customer base as their wealth grows over time.

Some of the largest names in the takaful market, according to a Research and Markets report, were believed to be the following:

• Islamic Insurance Company
• Standard Chartered
• Takaful Brunei Darussalam Sdn Bhd
• Prudential BSN Takaful Berhad
• Zurich Malaysia
• Takaful Malaysia
• Qatar Islamic Insurance Company.

Is Health Insurance Prohibited in Islam?

Publication : 09-02-2024

Views : 186403

Is working as a doctor in the insurance department of a private hospital, in which my role is limited to sending medical reports on the patient who needs tests or surgery to the insurance department to get approval from the insurance company to go ahead with these procedures, permissible or prohibited? I hope that you can explain.

Summary of answer

Contents Related

Is commercial insurance prohibited?

• Can you work as a doctor in the insurance department of the hospital? 

Praise be to Allah.

Commercial insurance of all types is prohibited, whether it is life insurance, health insurance or insurance of one’s property. But it is permissible to deal with it in two cases: 

• When a person is forced to do so , such as if he is forced to take out insurance on his car or a company forces its employees to take out health insurance. In that case the sin is on the one who forces people to do that.
• When a person is compelled to take out health insurance or he is in great need of it because he is not able to cover the cost of treatment from his pocket without having insurance. This is a need which makes it permissible to deal with health insurance according to a number of scholars, because the reason for the prohibition on this insurance is the ambiguity and the element of gambling, not Riba. When it is like that, it is permissible in the case of need.

The nature of the ambiguity is that the individual pays money but does not know whether his benefiting from medical services will be equal to that or more or less. 

Some types of insurance are based on both ambiguity and Riba, such as life insurance, where the individual pays installments and does not know how many they will be, in return for a known sum of money that is more than he paid. 

Among those who are of the view that health insurance is permissible in the case of need are: Dr. ‘Ali Muhiy Ad-Din Al-Qurrah Daghi, Dr. ‘Abd Ar-Rahman ibn Salih Al-Atran, Dr. Yusuf Ash-Shubayli and Dr. Khalid Ad-Du`ayji. 

Among the statements of the scholars that what is forbidden because of ambiguity is permissible in cases of need are the words of Shaykh Al-Islam Ibn Taymiyah (may Allah have mercy on him): 

“The same applies to ambiguous transactions, which are a kind of gambling, but some types may be permissible in the case of need and where it serves a clear interest.” (Majmu` Al-Fatawa, 14/471) 

And he (may Allah have mercy on him) said:

“Ambiguous transactions are forbidden because they are a kind of gambling which may lead to consuming people’s wealth unlawfully. But if that is countered by a greater harm, that makes it permissible so as to ward off the greater of two evils by putting up with the lesser. And Allah knows best.” (Majmu` Al-Fatawa, 29/483) 

He (may Allah have mercy on him) also said:

“The evils caused by ambiguous transactions are less than those caused by Riba, therefore a concession is granted when there is a need, if the prohibition on ambiguous transactions may cause greater harm than the transaction itself. Examples include sales of property, even if you do not know what is inside the walls or foundations, and sales of pregnant or suckling animals, even if you do not know the size of the embryo or the amount of milk, and even though it is forbidden to sell what is in the uterus on its own or the milk on its own (separate from the animal), according to most scholars. Another example is selling crops after it is clear that they are going to be good (although there cannot be absolute certainty), which is permissible according to the Sunnah. The Prophet (blessings and peace of Allah be upon him) allowed the buyer of date palms that had been pollinated to stipulate that they should bear fruit, so he bought crops before there was any sign that they would be good, but that was on the basis of buying the origin (i.e., the trees). Thus it becomes clear that in cases of mild ambiguity (when the ambiguity pertains to that which is secondary to the original item) it is permitted to do what is not permitted in other cases.” (Al-Fatawa Al-Kubra, 4/21) 

Can you work as a doctor in the insurance department of the hospital? 

What seems to be the case is that it is permissible to work as a doctor in the insurance department of the hospital and that is not regarded as helping in something prohibited, because among the patients there are those who need this insurance or are compelled to take it out, or the company for which they work was forced to take out insurance on them and their families. In these cases it is permissible for people to benefit from health insurance as stated above. There will still be some who do not need it, but it is difficult to tell them apart and we ask Allah to forgive them. 

And Allah knows best.

Was this answer helpful? No Yes

Source: Islam Q&A

Similar Topics

Is it permissible to take out health insurance for a house cat because it is sick?

If the company pays for health or life insurance for its employees, can they benefit from it?

Difference between Cooperative Insurance and Commercial Insurance

If someone is compelled to take out insurance, does he have the option to take out comprehensive insurance?

Ruling on a pharmacist giving medicine covered by medical insurance to a patient even though he thinks it most likely that it is more than he needs and that he is going to sell some of it

share Question

You can ask your question on the website via this link: https://islamqa.info/en/ask

Log in Create an account

Password should contain small, capital letter and at least 8 characters long

Can't log in to your account?

If you do not have an account, you can click the button below to create one

If you have an account, log in

Create new account Log in

Reset Username or Password

Send feedback.

• Albalagh.net
• AnswersToFatawa
• Arij Canada
• Askimam.org
• Askmufti.co.za
• AskOurImam.com
• CouncilofUlama.co.za
• Darulfiqh.com
• Darulifta Azaadville
• Darulifta Deoband Waqf
• Darulifta-Deoband.com
• Daruliftaa.com
• DaruliftaaMW.com
• DaruliftaaZambia.com
• DarulIftaBirmingham
• Darulihsan.com
• DarulUloomTT.net
• Fatwa-TT.com
• Fatwa.org.au
• FatwaCentre.org
• HadithAnswers.com
• IslamicPortal.co.uk
• IslamicSolutions.org
• Jamia Binoria
• Mahmoodiyah
• Mathabah.org
• Muftionline.co.za
• Muftisays.com
• MuslimaCoaching.com
• Seekersguidance.org
• ShariahBoard.org
• Tafseer Raheemi
• TheMufti.com
• ZamzamAcademy.com
• BinBayyah.net
• Darul Iftaa Jordan
• Shafiifiqh.com
• HanbaliDisciples.com
• TheHanbaliMadhhab.com
• Ask Question
• Lailatul Qadr

Home » Hanafi Fiqh » Muftisays.com » Is selling travel insurance without promotion and donating proceeds to charity permissible in Islam?

Related Q&A

• Can you get travel/medical insurance for Hajj to cover medical expenses?
• Renting a place to a person selling Motor(Vehicle) Insurance
• Can I Invest in a Life Insurance?
• Is it permissible to sell insurance for Alliance & Leicester without selling loans or mortgages?
• Do hospitals accept conventional health insurance cards and contract with insurance companies?
• Selling auto insurance.

Is selling travel insurance without promotion and donating proceeds to charity permissible in Islam?

This answer was collected from MuftiSays.com , based in London (UK). It is one of the fruits of Darul Uloom London . Many ‘ulama are involved in answering the Q&A on the site, including: Shaikul Hadeeth Mufti Umar Farooq Sahib, Mufti Saifur Rahman Sahib, Mufti Abdullah Patel Sahib, Maulana Qamruz Zaman Sahib, Mufti Abu Bakr Karolia Sahib.

Read answers with similar topics:

Random Q&A

My sisters-in-law belittle us and their parents. do i need to maintain ties with them, my abusive husband has left me for another woman who is supporting him – why is allah rewarding him, how can a husband balance pleasing his wife and parents when both want different things, happy british muslims video, khilal of the beard, my father is following the jamah tabligh, he likes to do dawah and worship but has no responsibility in the family. is it true during the prophet’s lifetime that sahaba went out to dawah and left the family behind for allah to take care, more answers….

• What should I do if my period started earlier than usual and I mistook it for my regular period?
• Can hair be highlighted?
• Was intercepting Abu Sufiyan’s caravan lawful or did it foresee the Battle of Badr?
• Difficulty believing in part of khalimah, why?
• Can I make wudhu before the start of namaz time if I have a discharge problem?
• Which sea creatures are Halaal and is a whale considered a fish?

Latest Q&A

• Male body hair
• Becoming pure from mensturation
• Going out with brother’s fiancé
• Student loans/finance
• Inheritance of undelivered gift
• Questions Around Wiping On Socks

Indexed Websites

Privacy overview.

Iran Travel Insurance

Traveling to Iran offers a unique and unforgettable experience, from its rich cultural heritage and stunning landscapes to its warm and welcoming people. However, like any international trip, it’s essential to be prepared for unexpected events. That’s where Iran Travel Insurance comes in.

With So Easy Travel Insurance, you can embark on your journey to Iran with confidence, knowing that you have comprehensive coverage tailored specifically for your needs. Whether it’s medical emergencies, trip cancellations, lost baggage, or travel delays, we’ve got you covered. Our easy-to-understand policies, competitive pricing, and efficient claims process ensure that you can focus on enjoying your trip while we take care of the rest. Explore Iran with peace of mind, backed by So Easy Travel Insurance.

Key Features of So Easy Iran Travel Insurance

• Medical Coverage:
• Emergency Medical Expenses: Covers costs for emergency medical treatment, hospitalization, and medications.
• Repatriation: Includes costs for medical evacuation and repatriation back to your home country if necessary.
• Trip Cancellation and Interruption:
• Cancellation Coverage: Reimburses you for non-refundable expenses if you need to cancel your trip due to covered reasons such as illness, injury, or unforeseen circumstances.
• Trip Interruption: Covers additional costs incurred if your trip is cut short due to a covered event.
• Baggage and Personal Belongings:
• Lost or Stolen Baggage: Compensation for lost, stolen, or damaged luggage and personal belongings.
• Delayed Baggage: Reimbursement for essential items if your baggage is delayed beyond a certain period.
• Travel Delays:
• Flight Delays: Compensation for additional expenses caused by flight delays, such as accommodation and meals.
• Missed Connections: Coverage for costs incurred due to missed connections caused by airline delays.
• Personal Liability:
• Legal Expenses: Covers legal expenses and compensation costs if you are held liable for injury to a third party or damage to their property.
• Assistance Services:
• 24/7 Assistance: Access to a 24/7 emergency helpline for medical and travel assistance.
• Concierge Services: Help with travel arrangements, reservations, and other non-emergency assistance.

Why Choose So Easy Travel Insurance for Iran?

• Tailored Plans: Customized insurance plans to suit the specific needs of travelers to Iran.
• Competitive Pricing: Affordable premiums without compromising on coverage quality.
• Easy Claims Process: Simple and efficient claims process to ensure quick resolution and reimbursement.
• Comprehensive Coverage: Extensive coverage options that cater to a wide range of travel-related risks.

How To Purchase So Easy Travel Insurance?

• Visit Our Website: Go to our official website and select the Iran travel insurance plan.
• Get a Quote: Fill in the necessary details to receive a personalized quote.
• Customize Your Plan: Choose additional coverage options to tailor the plan to your specific needs.
• Purchase Online: Complete the purchase securely through our online payment system.
• Receive Your Policy: Your insurance policy will be emailed to you immediately after purchase.

Tips For Traveling To Iran

• Visa Requirements: Ensure you have the appropriate visa before traveling.
• Health Precautions: Check for any required vaccinations and bring necessary medications.
• Local Customs: Familiarize yourself with Iranian customs and laws to respect the local culture.
• Emergency Contacts: Keep a list of emergency contacts, including the local embassy and Iran Travel Insurance helpline.

Travel with peace of mind and enjoy your adventure in Iran knowing that you are protected with So Easy Travel Insurance.

best places to visit in iran

Esfahan , is a major city in the Greater Isfahan Region, in the Isfahan Province of Iran. 

Gilded with the riches of kings, sultans, and Muslim caliphs the glorious city of Esfahan is unquestionably one of the most beautiful in all of Iran. Its heart is dominated by the colossal Naqsh-e Jahan Square; a UNESCO World Heritage Site that’s ringed by ceramic-fronted mosques and gorgeous Safavid palaces. Within the city, beautiful fountains give way to tree-dotted avenues, and arabesque bazaars burst with multi-colored stacks of spices and tassel-fringed carpets from the east.

The small hill station of Dizin has firmly established itself as one of Iran’s top winter sports destinations. It is located about 3,000 meters up in the Alborz Mountain range, about 70km north of Tehran, and was established during the 1960s. Dizin is the first ski and winter sports resort in Iran granted the title for its capability in administrating official and international competitions.

With a clutch of good, groomed pistes ranging from moderate difficulty to challenging runs, and a selection of cableways and chairlifts the soaring resort is one of the top places for a special ski experience. There are also some alpine-style hotels, and awesome views of the cone of massive Mount Damavand in the distance.

Travel Insurance

Travel Insurance, Schengen visa travel insurance, Europe and Worldwide Single Trip and Multi-Trip Insurance policies.