Cairo Scholars Opinion About Sharia Insurance

The number of opinions about insurance in Islam is due to the absence of insurance terms in the Qur’an and hadith. But practices similar to insurance have existed since the time of the prophet Muhammad including;

Al-Aqila i.e. If one tribe member is killed by another tribe member, the victim’s heir will be paid with blood money (diyat) as compensation for the closest relative of being killed. The closest relative of the killer is called aqilah. Then they raise funds (al-kanzu) that are intended to help families involved in accidental killings.
Al-Qasamah is a concept that involves collecting dues. These contributions or funds are kept in the form of a savings account or collection of contributions from participants or the assembly, the benefits will be paid to the aliwaris who are killed if the murder case is not known who the killer is or there is no proper witness testimony to really know who the killer is.

In the opinion of the Cairo scholars Muhammad Yusuf Musa Professor of Islamic Law at the University of Cairo, Abdul Rahman Isya, author of the book al-Mu’amalat al-Hadistah wa Ahkumuha, Mustofa Ahmad Zarqa’ Professor of the Sharia Faculty of Siri University they allow insurance absolutely without exception for the following reasons:

There is no Nash Al-Quran and Hadith that contain insurance.
In insurance there is an agreement and willingness between the two parties.
Insurance is mutually beneficial for both parties.
Insurance contains public interest, because the premium money collected can be invested in development activities.
Insurance includes a mudharabah contract between the policy holder and the insurance holder.
Insurance includes syirkah ta’wuniah, which is a joint effort based on the principle of helping.

While in our country the guidelines for sharia insurance are in the MUI fatwah Fatwa of the National Sharia Council No. 21/DSN-MUI/X/2001 “Insurance based on sharia principles is an effort to help each other (ta’awuni) and protect (takafuli) among the participants through the formation of a collection of funds (Tabarru Fund) which is managed according to sharia principles to deal with certain risks.

Basically insurance is allowed but with sharia principles of course.