Usury and Insurance in Islam: An Analysis
DOI:
https://doi.org/10.5281/Keywords:
Riba, Insurance, TakafulAbstract
This research examines the concepts of riba (usury) and insurance in Islamic jurisprudence, exploring their permissibility and interrelationship. Riba, defined as an unjust increase in wealth, is prohibited in Islam due to its exploitative nature, rooted in principles of justice and fairness. Insurance, a modern financial instrument, lacks explicit rulings in the Quran or Hadith, necessitating scholarly ijtihad. Findings reveal that conventional insurance often incorporates riba, gharar (uncertainty), and maysir (gambling), rendering it incompatible with Islamic law. Conversely, Islamic insurance (Takaful) offers a permissible alternative, based on mutual cooperation (ta'awun) and voluntary contribution (tabarru'), effectively eliminating prohibited elements. This study underscores the adaptability of Islamic law to modern economic challenges and emphasizes the need for ethical financial practices. It contributes to understanding how Islamic principles can shape contemporary financial systems while promoting equity and justice.
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