1. It is permissible.
2. The permissibility or otherwise of an insurance policy depends on the
terms and insurance policy scheme. But leaving aside mutual insurance
schemes, all the insurance policies available with the traditional insurance
companies run on a commercial basis and contain elements of interest or
Qimar (chance) or both, hence, not allowed. (Contemporary Fataawa; Mufti
and Allah Ta’ala Knows Best
Mufti Ebrahim Desai