Insurance on cars, goods, factories and workers: What is the Islaamic ruling?

Question 29: What is the ruling on insurance such as cars, goods, workers and factories? Sometimes the person applies for insurance willingly. Other times they are forced to have insurance. For example a car dealer may stipulate that the customers must insure the new cars they purchase by installments. The same applies when a person sends goods from another country.We would like to know whether there are lawful and unlawful types of insurance. Is insurance considered a type of Ribaa (usury/interest)?

Answer: The type of insurance mentioned in the question, known as commercial insurance, is unlawful because it involves Gharaar sale (fraudulent transaction where details about the sold item are unknown or uncertain) and Jahaalah sale (sale with lack of knowledge) that cannot be overlooked. It also involves gambling, taking people’s money unjustly and Ribaa, which are all proved to be Haraam (prohibited) transactions according to religious evidence…read more here.