DIFFERANCE BETWEEN INTEREST AND INSURANCE

To clarify the differance between interest and insurance it is imporant to first understand the definition of interest 
Interest is called Riba in Arabic language and the term interest means excess and growth and elevation
There are two basic types of riba
1) Riba al - fazl 
2) Riba al - nasiya

RIBA  AL - FAZL

This type of interest which is obtained by exchanging goods of the same kind , for example, two kilograms wheat are taken for one kilogram of wheat .

RIBA  AL - NASIYA

This type of interest that is given on the condition that the borrower repays the lender more than the principal amount .
 
There is nothing wrong with life insurance or home insurance and business insurance . it is a contract between a person will pay installment to the insurance company which will not be a loan but a promise of support . But it will be given for the support of others.
 
The insurance company will pay this amount when the pre determined need arises or the time is fulfilled

The insurance company does business on the people's money and a part of the profitvis given to the people who pay the premiums 

So, there is no direct gambling or interest in this contract was made with the insurance company which is shariah releted.
 
Therefore according to us this business is useful and permissible in shariah.
 
But the above text includes both interest and gambling if the viewer considers it