How can Insurance be Haram?
Apparently, it is haram because we are paying for a service that we may not even use or need. That is true in some cases, like when people have paid for pet insurance their pet’s whole life, but when their pet gets sick and the treatment is expensive, the insurance company refuses to pay out. Then you have types of insurance that are absolutely worth it, for example, gadget insurance, where you pay to cover the electronics in your home, or health insurance in case you get injured. Life insurance etc
Guys, I’m talking about Western insurance, and I just want direct answers. There is no shared pot or group of people involved. I’m talking about services offered by companies, such as health, dental, gadget and travel insurance.
The way I see it, you are paying for the service of protection for that month, whether you need to make a claim or not. I don’t see the gharar because the monthly fee is fixed, so you know exactly how much you are paying.
I’m also not sure how it violates maysir. The insurance company sets a price that it considers fair, and I evaluate whether the protection offered is worth that price. I’m paying for security, not betting on something going wrong or expecting to make a claim.