Insurance is a method of protection against several dangers and injuries; and in Turkey, it’s divided to two as “Social Insurances” (state-owned) and “Private Insurances.” Social Insurances have three components called Retirement Fund (for both civil servants and officers), Workers’ Insurance, and Shopkeepers and Businessmen Insurance; and it is an official enterprise.
For instance, if those insurances include ‘gharar’ (deceiving and loss for one party), gambling, interest, seizing others’ products without paying any cash, making what’s unnecessary mandatory, selling debt in return for debt, part-mutual gambling, etc., the trade of insurance becomes haram.
If these mentioned above along with other haram methods aren’t included, then, the insurance becomes permissible. We can declare that particularly, the insurance system that’s established with the intention of mutual support is permissible.
Nowadays, notably in Turkey, insurance programs are mostly split into three: mandatory or social security system, personal business insurance system and personal solidarity system (mutual insurance).
The next one is permissible as it’s entirely an organization of mutual aid and solidarity, and there aren’t any men and women who believe otherwise about it.
The first one isn’t different from the next person, and the goal of these types of exemptions would be to discuss the dangers of life by making sure that the reciprocal solidarity of the taxpayers. The only difference of the sort is the fact that it’s compulsory.
The type of insurance that’s subject to dialogue is the next kind, in other words, private commercial insurances. This sort of insurance, which isn’t very different from the others concerning operation, has just two negative attributes. The very first one is: they are usually subsidiary businesses of banks due to the requirement of depositing the cash in a financial institution, and they get interested from that money. The next one: a few life insurance methods execute an interest based program. Aside from those gaps, the one distinction is that you’re coordinated by the country, and the other one is coordinated by a commercial business. It doesn’t alter the ruling. The first one of the two negative aspects is from this contract, and it doesn’t invalidate the contract. It can be redeemed to the grocer that I purchase things from; for example, he frees haram with all the money he makes. This sort of purchasing isn’t haram, but it isn’t free of objection as it can be considered indirect support to wicked. Next, if there are choices of these types of exemptions which don’t include the negative elements, an individual ought to do business together not with the others. But in case there are not any other choices, then you can do business together.
The second negative aspect is your direct attention trade, and that contract itself is haram. The insured person blows off his money for a particular period, and in the conclusion of the period, he receives his cash along with interest. It’s interest. In our view, if these two negative attributes are removed, it may be stated that personal insurances are also pragmatic.