General insurance and Islamic Shariah

Insurance has a central place in the modern economic system. The chambers of commerce of various Islamic countries have, in conference meetings, discussed cooperating on insurance and reinsurance. Uncertainty is an element of life. With increasing complications in the economic system, more risks exist and need to be handled with advanced methods. Insurance gives financial assurance. It does not aim to keep disasters from happening; it seeks to protect individuals from the consequences of these disasters. Islamic scholars contend that Islam permits insurance. Mutual insurance is the favored sort because it entails cooperation and is not exploitative. The peace an Islamic society seeks come when people's basic needs are guaranteed. Scholars support government involvement in the insurance process. The typical arguments that insurance is impermissible are: it weakens tawakkul (reliance) and taqdir (destiny); it is a form of gambling; and it involves riba (interest). The first t