Question: What is the ruling on insurance, whether it be life insurance or property insurance?
Insuring one’s life and property is forbidden; it is not permissible due to the fact that Al-Gharar and usury are involved therein. And Allah-the Almighty, the All-Powerful-has forbidden all types of dealings that involve usury and dealings in which there is Al-Gharar, as a mercy for the (Muslim) community and protection for them from what is harmful to them. Allah-Most Glorified, Most High says:
“whereas Allah has permitted trading and forbidden Riba”(usury)
And it has been authentically reported from the Messenger of Allah (saw) that he forbade selling Al-Gharar. And Allah is the Granter of success.
Shaykh ‘Abdul-Aziz bin ‘Abdullah bin Baz