Answer 1

In the light of the Shari'ah one is not permitted to take out a voluntary insurance policy be it life insurance or short term insurance of motor vehicles, properties, businesses, houses or other assets such as gold, TVs, and other household items, etc, even if there exists a fear of it being stolen or damaged.

The basic cause for this impermissibility is that all the insurance policies prevalent in the traditional insurance companies are against Islâmic principles and are Harâm, such as Ribâ (interest) and Qimâr (gambling). Hence it also comprises of Gharar (uncertainty) in view of the fact that the insured person is bound to pay a premium.

It is a commercial transaction in which the person who wants to insure his goods is bound to pay a premium to the company in accordance with the prescribed conditions.

This payment is certain and mandatory without which insurance is not possible. But on the other hand, the payment by the company is not certain.

It is a contingency upon an event or accident which may or may not occur. If the accident takes place, the company is bound to pay an amount far higher than the amount of the premium paid by the insured, but if the accident does not take place, the company does not pay to him anything and the premium paid by him goes without any return.

In other words, the insured is bound to pay in any case while the company may or may not pay. Such kind of transactions is termed as gharar and Qimâr and is strictly prohibited in Sharî'ah .

Moreover, if the accident or loss takes place, the amount of insurance is paid to the insured as a consideration of the amount of premium.

It is again repugnant to the well-settled principle of Sharî'ah that where money is exchanged for money, both the amounts should be equal in quantity. Any increase on either side is 'riba' which is clearly prohibited by the Holy Qur`ân and Sunnah.

The gambling aspect comes to the fore due to the fact that insurance is like a game of chance: if one suffers losses in ones properties, businesses or any other assets by way of theft, fire, damage or loss one would receive a monetary kickback from the insurance company that would be far in excess of the premiums paid in. However, in the absence of a contingency i.e. there is no loss sustained.

Instead of receiving something back, one would have to forfeit the entire premiums that where paid in. The mere FEAR of a possible loss is not a valid excuse which may legalize a cardinal sin such as interest or gambling. Consequently, this is what an insurance contract is all about hence the basic reason for which one generally takes out an insurance policy is this that he perceives the fear of the loss of an item in the face of hazardous and risky situations.

Therefore to take a precautionary measure against a possible loss or seeking a safeguard against an accident does in no way contravene the concept of Tawakkul (placing one's trust in Allâh).

However, like any other act in this life, every measure of precaution must conform to the principles of Shari'ah and should not in any manner cross the limits prescribed by the holy Qur'ân and the Sunnah. As insurance is a precautionary measure that crosses the limits set out by Shari'ah, it would not be permissible.

Hazrat Mufti Taqi Uthmani madda zilluhu has mentioned it in the following words in his book CONTEMPORARY FATAAWA :

"It is a well settled principle of Sharî'ah that every transaction between two parties in which the payment by one party to the other is certain while payment by the other party depends upon a contingency (which may or may not occur) is included in Qimâr and gharar and is, therefore, unlawful.

Therefore a permissible alternative should be sought and if this is not possible then one should forget about getting involved in such prohibited forms of insurance and thereby place ones trust in Allah Ta'ala with the firm conviction that only He will protect ones assets and sort out ones financial commitments.

One should not look towards infrastructures established by the kuffar whose only purpose is to deplete the hard earned money of the unsuspecting masses and to make the poor poorer and the rich richer.

2.is somebody allowed to buy the land for there burial grave before they even die?

Answer 2

Yes, this is permissible. (Khair-ul-Fatawaa, Page 245, Vol. 3)

It is reported that Umar bin Abdul Aziz and Rabi' Bin Khaytham (rahmatullâhi alayhima) had personally dug their own graves.

Rasûlullâh (sallallâhu alayhi wa sallam) has also encouraged us to remember death constantly. Buying the land for one's grave and constantly visiting that land will remind one of death.

However, together with this, it should be remembered that no one can know with full conviction that they will be buried at a certain place. Only Allah Ta'ala knows where each person will pass away. (Raddul Muhtâr Vol 3 Pg 154)

Allah (SWT) Knows Best.

Answered by Mufti Muhammad Patel, Darul Iftaa, Zambia