Title: Does Insurance involve Making Payment for Unused Service? Question: I am not sure whether Insurance is Halaal or Haraam in Islam? I am thinking it is Haraam , because it is paying for a service that we are not sure whether we are going to benefit from or not. As, it is the same thing as buying fish in the sea, or buying dates in palm trees, which was prohibited by the prophet Muhammed Peace be upon him. I am not sure whether I am right or wrong, that is why I would like to know the right answer? Hamdi Grazza United Kingdom Answer: For my opinion on whether or not insurance is allowed in Islam, please refer to a couple of my earlier responses to related questions titled ' Regarding Insurance ' and ' The Islamic Point of View regarding Insurance '. Insurance does not involve paying for a service which we may or may not use. A more accurate presentation, on the contrary, would be that the payment of insurance involves a payment for the coverage of real and present risk. Risk, however, by its very nature is a phenomenon which may or may not materialize. The service provided by the insurance contract is the coverage of risk: to indemnify the insured IF the risk of loss of the insured property etc. materializes. This service is invariably used and benefited from by the insured. In view of the foregoing explanation, it should be clear that, in my opinion, your stated objection does not apply to the concept of insurance. I hope this helps. Regards, Moiz Amjad February 15, 2003