As you would be well aware of the fact that Insurance is a comparatively new concept. There was no such thing as insurance during the times of the Prophet (pbuh). Because of this reason, obviously, nobody can say that the Shari`ah prohibits insurance. What the Muslim scholars have to decide is whether or not insurance could be linked with any of the clear prohibitions of the Shari`ah . If insurance is clearly related to any of the clear prohibitions of Islam, the same prohibition may apply on insurance too. However, in case insurance cannot be related to any of the clear prohibitions of Islam, we cannot then term insurance to be prohibited in Islam. In my opinion, Insurance does not relate to any of the clear prohibitions of Islam. Some people have tried to relate it with "wager". Nevertheless, in my opinion, the "Principle of Insurable Interest" and the "Principle of Indemnity" (two important and universal principles in the concept of insurance) hinder us in relating Insurance with wager. In my opinion, therefore, there is nothing in the basic concept of insurance that would render it prohibited in the Islamic Shari`ah . My opinion covers all types of insurances. 5 th December 1998 Answer published by Moiz Amjad