Ruling on Commercial Insurance

Authored by: Fatwas of the Saudi Fatwa Committee

All forms of commercial and business insurance are prohibited in Islam. This is because they involve several impermissible elements, such as:

1. Gharar (excessive uncertainty or deceit)
2. Riba (usury or interest)
3. Jahalah (ambiguity or ignorance)
4. Qimar (gambling)
5. Unlawful consumption of people's wealth.

These factors render such practices impermissible under Islamic law.

[Reference: Al-Lajnah Ad-Daimah, Fatwa No. 3117]