All perfect praise be to Allah the Lord of the Worlds. May His peace and blessings be upon Prophet Mohammad and upon all his family and companions.
Commercial insurance is unlawful since it involves usury, uncertainty and gambling. Allah Says {What means}: "O ye who believe! Intoxicants and gambling, (dedication of) stones, and (divination by) arrows, are an abomination,- of Satan’s handwork: eschew such (abomination), that ye may prosper." {Al-Mai`dah, 90}. As for compulsory insurance, we pray that the insured don`t incur sin as they are obliged to have it. We advise the asker to resort to mutual insurance, which complies with the provisions of Islamic Law. And Allah The Almighty Knows Best.