The ruling on insurance in Islamic jurisprudence: between prohibition and permissibility, an inductive study

Abstract

The study of Islamic jurisprudence (fiqh) is of paramount importance, as humankind was created to worship God alone. Jurisprudence is constantly evolving, and this research paper addresses the issue of insurance: its fluctuation between prohibition and permissibility. Researchers believe it is essential to study commercial insurance contracts to determine their legal basis. This issue has become a hot topic in contemporary law, and Muslims urgently need to understand Islamic legal rulings on it. Therefore, this research paper's contribution is highly valuable. This study aims to clarify the reality of insurance contracts and their origins. Previously, Muslim jurists were largely unfamiliar with modern forms of insurance contracts, mentioning only a principle in the commentary of the jurist Ibn Abidin, which opposes what is called "intoxication" (or insurance). The issues addressed in this study fall under the category of "fiqh al-nawazil" (jurisprudence of contemporary issues), which pertains to matters related to financial transactions in Muslim society. The position of Islamic law on this issue is ambiguous; it neither permits nor prohibits it. There is a pressing need for information on commercial insurance and a clear Islamic legal perspective. Although the Islamic Supervisory Board and the Institute of Islamic Law have not issued a fatwa on its permissibility, there remains a need for information on commercial insurance and a clear Islamic legal perspective. While much research has been conducted previously, this topic still requires a clear definition based on Islamic law. Research Methodology: This study employs inductive and deductive reasoning, deriving a jurisprudential perspective on commercial insurance through the study of Quranic verses and Prophetic hadiths. After examining the study, the researcher concluded that Islamic law is rich in systems and rules that address harm and remove dangers that befall individuals. This is evident in the following: the legislation of Zakat, which provides a solution for every hardship or danger that afflicts a person, such as debtors and others; it opens the door to charity and spending in all forms of goodness and righteousness without expecting anything in return; and it encourages Islamic solidarity and cooperation among Muslims to alleviate risks to one another.