A View of Insurance from the Perspective of Islamic Jurisprudence

Abstract

Insurance (ta'min) has emerged as a significant issue in modern Islamic jurisprudence. Classical jurists did not address it, as the social and economic conditions giving rise to insurance were absent in earlier times. Consequently, no explicit term or ruling on insurance exists in traditional fiqh texts. However, contemporary scholars have actively debated its legitimacy—some deeming it lawful (mubah), others unlawful (haram), and some distinguishing between its types. This article examines the jurisprudential foundations of insurance, contrasting classical fiqh principles with modern social and economic necessities. It analyses the key arguments for and against the permissibility of commercial insurance and explores cooperative insurance (ta'awuni) as a Sharia-compliant alternative. The study concludes that while commercial insurance presents ethical and legal challenges, cooperative insurance aligns more closely with Islamic concepts of solidarity, social responsibility, and mutual aid, offering a viable model for modern Muslim societies.