Is travel insurance permitted, on the premise that a claim is only made in exceptional circumstances ?, i.e. injury which requires Air Ambulance, etc, etc
Assalamu'alaikum w.w. Travel insurance is not permissible even if claims are restricted to exceptional circumstances. Hazrat Mufti Taqi Uthmani (madda zilluhu) writes in his book, CONTEMPORARY FATAAWA : "It is a well settled principle of Shar�'ah that every transaction between two parties in which the payment by one party to the other is certain while payment by the other party depends upon a contingency (which may or may not occur) is included in Qim�r (gambling) and gharar (deception) and is, therefore, unlawful. (Page 122) "....all the insurance policies available with traditional insurance companies run on commercial basis have an element of interest or Qimar or both. Hence, they are not allowed in Shari'ah." (page 164) Allah (SWT) Knows Best.
