Insurance in Islamic law

With the increase of complexity around the world, the risks, accidents, and damages arising from these complexities have also increased. Therefore, People's need for safety and protection has increased. Insurance first emerged as a traditional insurance system in Europe in the 14th century, then insurance contracts entered Islamic societies, and the insurance contract was considered as a new contract in these Islamic societies. Research in this field is still ongoing, and insurance continues to be studied in every aspect, from legal, religious, analytical, critical, technical and economic perspectives... etc. Today, Insurance has become mandatory in many fields, such as automobile insurance, liability insurance against third parties, and insurance against risks such as fire. The insurance system was defined and its history examined; this is an overview to understand the fundamentals and historical development of insurance. How insurance evolved into a legal framework was also examined. Also, insurance is divided into many types and the study focused on such types as traditional insurance and Takaful, known as Islamic insurance (cooperative). Comparisons have also been made in term of similarities and differences between these two types of insurance, with other shar'i (legal) and non-shar'i (illegal). The opinion of Islamic law on the legality of insurance was reached after studying aspects of the insurance contract and its similarity to other shar'i (legal) non shar'i (illegal) contracts and the opinion of scientists and legal professionals specialized in this field.. Interest (utility) is an important factor in insurance of any kind, without it the insurance contract is not valid, and there are obligations from the insurance company in favor of the insured, and from the insured for the benefit of the insurance company. The concept of risk is also an integral part of the concept of insurance, from which the insurance system was emerged and in order to spread security - which is against risk - the insurance contract was created. The insurance system has been defined, and dated; in order to know the old background on which the insurance was built in a peek of the evolution of its stages until its arrival in the legal form it became.