Insurance and investment in Islamic perspective

A debate exists on the Islamic permissibility of various forms of insurance. Mutual insurance in Islam legitimately covers certain social and group life mechanisms of insurance. Those who argue that certain forms of insurance are impermissible make four arguments: there is pricing of an undetermined entity because risk is indeterminate; there are no clear exchanges when the insurance contract is made; the insurer faces no risk (in contrast to the insured); and contemporary insurance is steeped with interest. An extensive and thorough look at the numerous forms of insurance shows that the spirit of mutual insurance conforms with Islam. Halal insurance methods need to be developed. Such insurance can prove financially beneficial and helps fulfill the mutual responsibility of believers to protect one another.