Insurance in an Islamic economy

Insurance is an institution grounded in the comprehension of a principle that groups of individuals each contributing small amounts can as a unit be a means of protecting each individual from damaging losses. The author holds that this principle must be used in order to benefit humanity. It is stated that insurance and gambling are completely different matters. The author believes that insurance can be designed in an interest-free and Islamically acceptable manner. Such an insurance system is seen as a component of a just economic order. The author divides his work into four chapters. The first chapter is concerned with a discussion of risk in its various forms, as well as the economic consequences of risk. The nature of the institution of insurance is therein dealt with. The second chapter is focused on impermissible insurance and gambling. Interest and its relation to insurance is discussed therein. The third chapter is devoted to discussion of insurance within Capitalist and Sociali