Open AccessJuristic Views on Riba, Gharar and Qimar in Life Insurance
Author(s) -
K. M. Zakir Hossain Shalim
Publication year - 2016
Publication title -
islam and civilisational renewal
Language(s) - English
Resource type - Journals
eISSN - 2041-8728
pISSN - 2041-871X
DOI - 10.52282/icr.v7i2.263
Subject(s) - life insurance , islam , order (exchange) , confusion , mathematical proof , insurance law , law , political science , law and economics , insurance policy , business , actuarial science , sociology , general insurance , mathematics , psychology , philosophy , theology , finance , geometry , psychoanalysis
Throughout the Muslim world, the issue of whether life insurance involves unlawful elements of ribe, gharar and qimer continues to be debated. A heated controversy has been raging over this problem, with Muslim jurists becoming divided into two distinct groups: those who have argued that ribe, gharar and qimer are all in some way involved in life insurance (thereby making the latter Iarem) and others who have denied these arguments. Interestingly, both groups have supported their views with proofs from the sources of Islamic law, creating much confusion in the Muslim world. Hence, this paper examines the different juristic arguments and counter arguments on this issue in order to determine the preferable view. Ultimately, the paper concludes that, conceptually speaking, there is no gharar, ribe, or qimer in conventional life insurance. However, in order for conventional life insurance to be admissible in Islam, the paper has recommended some policies for insurance companies and participants to follow.