(IFER)
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(Suggested By- Zahid Jamil)
There are various types of insurances offered by companies throughout the world. Islamic scholars have divided opinion on various forms of insurances. There are differences in understanding of the philosophy of insurance. Some look at it as a betting against the occurring of an incident in which case insurance would be declared un-Islamic. Others look at it as sharing of risk of various incidents, to which all of us are exposed, with fellow beings which makes it look as a noble idea. Through insurance one can claim for a loss with dignity and restore pride to one’s life instead of falling into a situation where one has to accept others help as a charity. Incidents may relate to loss of property in an accident or natural disaster or personal injury or death by various causes. Such events usually have disastrous consequences for the victim or the dependents for none of their fault. Insurance provides financial protection to them despite the fact that they have to bear the emotional and other life related suffering due to these incidents.
There are no verses in Quran about insurance and thus it is open to discussion and study as per the guidelines of various Islamic teachings. This paper will study various forms of insurances, understand the fundamentals of actuarial principals which determine the insurance premiums, look into operations of insurances companies and weigh them all as per Islamic ethics. It will thus come up with suggestion that what forms of insurances and to what extent should be allowed for Muslims.