ARE INSURANCE POLICIES PERMITTED IN ISLAM

As-Salaam Alaikum Wa-Rahmatullahi Wa-Barakatuhu
Insurance of one's life or possessions is haraam and is not permitted, because it involves gharar (buying/selling something where it is not known whether what is being bought/sold will actually be achieved/delivered, or in what specific quantity, thus putting one's money at undue risk to being lost) and riba (usury, interest). Allaah has forbidden all transactions that are based on riba, and all transactions which involve deceit, as a mercy to this ummah, and to protect them from that which may harm them. Allaah says (interpretation of the meaning): - See more at: http://www.quranrecites.com/insurance_policies_in_islam.php#sthash.MspHtE5V.dpuf