| Insurance is considered prohibited in Islam and some of the objections to conventional insurance are: (a) The contract of insurance does not pass the criteria of validity as any valid contract in Islamic law must specify unambiguously the consideration, the object of sale and its delivery time and place.
In the case of insurance, while price (premium) and schedule of payments are known with certainty, it is not known when the object of sale will be paid if at all. This is considered as an example of contractual uncertainty or what is more commonly known as gharar in Islamic law...............................................Full Article: Source
|