Dr. Monzer Kahf, a prominent economist and counselor states: “Insurance is not Haram in Shari’ah. It is a new contract invented in the West and Muslim scholars discusses it. SOME ARGUE THAT IT IS HARAM AND SOME ARGUE THAT IT IS PERMISSIBLE OR NOT HARAM. I adopt the view that it is permissible regardless of whether it is required by law or not. This means that not only liability insurance for cars is permissible but also comprehensive and other kinds of insurance are also permissible. The leader of this view was the late Shaikh Mustafa al Zarka who was most renowned among Shari’ah scholars of the last quarter of the last century (died in 1999). The late Sheikh Maududi also belongs to this school. The argument against insurance does not realize the importance and great effect on this contract in an economy that has mass movement of machines (cars, plains, etc.) and intensive interrelations in products and that lost the tribal bonds on which the old system of ‘Aqilah was based. INSURANCE IS A NECESSITY OF CONTEMPORARY SOCIETIES. Therefore, the amount of Gharar that in casts is tolerable especially that it does not lead to dispute but rather reduces disputes and litigations. If you accept this view the question becomes irrelevant and you can take insurance that covers your liability and your assets too.”