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removing gharar, gambling and riba from insurance


If i buy a car insurance so that i can legally drive the car in my country, and pay the premiums as per the contract, but when and if my car gets damaged, I do not make a claim for reimbursement from the insurance company, but instead I pay for the damages from my own pocket, (that is, I just buy the insurance to legally drive the car, but not collect money from the insurance company) does that mean that now the Al-gharar, the aspect of gambling and the aspect of riba have been removed from the insurance contract. Since the contract now is plain and simple – I will pay the insurance but will not receive anything in return except the right to drive the car legally which means the contract now has no uncertainty (gharar) in terms of what I am going to get from the insurance company (i am getting the right to drive the car, that’s it) and also removes the aspect of gambling since I will not be receiving any money from them, and the aspect of riba also gets eliminated since the money that I have paid them is theirs now and if they invest it in riba, then I should not be held liable because it is their money now. So does this make the insurance halal now since all the objections have been removed? I know you will be thinking that if I am in a country that makes it compulsory to buy car insurance then it is allowed for me to buy car insurance. But that is not my question. I want to know if buying insurance only to legally drive the car, and not receiving any money from the insurance company helps remove al-gharar, gambling and riba from the contract.


As-salamu Alaikum Wa Rahmatullah

Thanks for your question

Ghara (غرر), Riba and gambling are terms with clear definitions, if the divination includes your contract with the insurance company, it counts as one otherwise it doesn’t. since there is a contract between you and your insurance company what you’ll do doesn’t matter, the details of the contract are what matters, so if the contract details are clear (for example the danger and damage type are specified) then it doesn’t count as Gharar.

Also according to Ayatollah Sistani, “it is permissible for a Muslim to purchase an insurance policy from various insurance companies for insuring his life and property”

for more info: insurance Agreement


Sheikh Mahdi Mosayyebi