Table 1 Views of scholars on insurance... | Emerald Publishing

Table 1

Views of scholars on insurance contracts

Three views pertinent to insurance	Commercial and cooperative insurance are not allowed	Commercial insurance allowed	Cooperative insurance allowed and commercial insurance is not allowed
Names of scholars who adopt the stated view	Shawkat Alalyan Suliman Althuniyan	Mohammed Salama Jibr Abduallah Bin Zaid Al-Mahmood Mustapha Al-Zarqa Ali Al-Khafif	Mohammed Abu Zahra Al-Sadiq Al-Darir Hussain Hamid Hassan
The key basis of the view	• It is a form of gambling that is clearly not allowed in Shariah “O you have believed, indeed, intoxication, gambling … are but defilement from the work of Satan, so avoid it that you may be successful” • Insurance contract contains high uncertainty as the amount of paid money is not assured, and the covered guarantee is not obviously known • Usury (or Riba) is not allowed in Shariah, and the insurance contract is an exchange of unequal money and late payment • To avoid the need for insurance, these scholars suggest encouraging donation schemes like Waqf and Sadaqah as well as enhancing the social commitments among society members	• People need insurance to overcome the issue of risks that they face in their trade or lives • The basic legal maxim and fundamental concept of Shariah says that the transactions are permissible except what is stated in Shariah as not allowed. Thus, due to the absence of a clear prohibition on insurance transactions in Shariah sources, insurance remains the fundamental concept of what is allowed • The insurance contract is similar to some of the allowed Shariah contracts, although the outcome or return is not known exactly like Al’Aqilah (wergild or blood-money to free an accused in accidental killings), Alhirasah and Almualah. Therefore, insurance is similar to these contracts based on analogy (Qiyas)	• Cooperative insurance is allowed not due to the fact that there is no uncertainty but because its basic contract differs from the commercial insurance contract due to its different nature. The basis of a commercial contract is that it is an exchange and bilateral contract in which certainty in price and its corresponding goods or services must be made known to all parties (this is not found in an insurance contract). Whereas the basis of a cooperative insurance contract is Tabaru’ or donation, which makes the matter of uncertainty not applicable as the contract is unliteral. Therefore, cooperative insurance is allowed not because uncertainty (Gharar Fahish) does not exist but because the basis of its contract is a gift (Tabaru’), in which uncertainty is not a matter of concern

Three views pertinent to insurance	Commercial and cooperative insurance are not allowed	Commercial insurance allowed	Cooperative insurance allowed and commercial insurance is not allowed
Names of scholars who adopt the stated view	Shawkat AlalyanSuliman Althuniyan	Mohammed Salama JibrAbduallah Bin Zaid Al-MahmoodMustapha Al-ZarqaAli Al-Khafif	Mohammed Abu ZahraAl-Sadiq Al-DarirHussain Hamid Hassan
The key basis of the view	• It is a form of gambling that is clearly not allowed in Shariah “O you have believed, indeed, intoxication, gambling … are but defilement from the work of Satan, so avoid it that you may be successful” • Insurance contract contains high uncertainty as the amount of paid money is not assured, and the covered guarantee is not obviously known • Usury (or Riba) is not allowed in Shariah, and the insurance contract is an exchange of unequal money and late payment • To avoid the need for insurance, these scholars suggest encouraging donation schemes like Waqf and Sadaqah as well as enhancing the social commitments among society members	• People need insurance to overcome the issue of risks that they face in their trade or lives • The basic legal maxim and fundamental concept of Shariah says that the transactions are permissible except what is stated in Shariah as not allowed. Thus, due to the absence of a clear prohibition on insurance transactions in Shariah sources, insurance remains the fundamental concept of what is allowed • The insurance contract is similar to some of the allowed Shariah contracts, although the outcome or return is not known exactly like Al’Aqilah (wergild or blood-money to free an accused in accidental killings), Alhirasah and Almualah. Therefore, insurance is similar to these contracts based on analogy (Qiyas)	• Cooperative insurance is allowed not due to the fact that there is no uncertainty but because its basic contract differs from the commercial insurance contract due to its different nature. The basis of a commercial contract is that it is an exchange and bilateral contract in which certainty in price and its corresponding goods or services must be made known to all parties (this is not found in an insurance contract). Whereas the basis of a cooperative insurance contract is Tabaru’ or donation, which makes the matter of uncertainty not applicable as the contract is unliteral. Therefore, cooperative insurance is allowed not because uncertainty (Gharar Fahish) does not exist but because the basis of its contract is a gift (Tabaru’), in which uncertainty is not a matter of concern

Source(s): Authors’ own work