نهى عن بيع الغرر forbade al Ghrar
Insurance is a transaction that involves ambiguity, and transactions that involve ambiguity are forbidden according to sharee’ah.
Muslim (1513) narrated from Abu Hurayrah (may Allaah be pleased with him) that the Prophet (peace and blessings of Allaah be upon him) forbade gharar (ambiguous) transactions.
Gharar in Arabic means a risk which is not certain; it may happen or not, such as selling fish in the water or birds in the air, because the purchaser may or may not get it.
Al-Azhari said: Gharar transactions include any transactions in which something is not known.
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