Why Health Insurance Is Haram In Islam. It is clearly forbidden in islam, and muslims should avoid these transactions. Whether or not the insured collects any money or receives any benefit from purchasing insurance is dependent on unknown future events.
Insurance is allowed in islam having said that many people must be thinking how can he say that. Firstly, in islamic religion, allah is responsible for life, death and providing for his people. Usually the companies insure people by their employer's company, so an employee is only managing something that was agreed upon by two corporations.