From Allafrica.com: Looking at the concept of insurance, what the basis is, these are companies dealing in risks. They insured your risks so that whenever an unforeseen contingency happens, they will intervene and pay you compensation.

Now looking at this arrangement from Islamic perspective, you can hardly find it to be acceptable to Shariah. This is because Shariah, in its pristine nature does not allow any transaction which has some elements of uncertainty. If there is any element of uncertainty which we technically call Garar(uncertainty) from the Shariah perspective, then that Garar tainted whatever contract it enters into…………………………………..Full Article: Source