Insurance and Islam

There are numerous references to Ta'awun and Takaful in the Quran in the context of co-operation and solidarity for the good of society. One widely quoted reference is from sura al-Maidah, as follows:
"And help one another in righteousness and piety and do not help one another in evil deeds and enmity" (Al Quran : Al Maidah 2)
One of the approaches to social help and assistance practiced in Islam that relates to the first Constitution of Medina, stated that, "the emigrants from among the Quraish shall be responsible for their ward and shall pay the blood money in mutual collaboration and shall secure the release of their prisoners by paying their ransom themselves, so that the mutual dealings between the believers be in accordance with the principles of recognised goodness, justice and mutual responsibility".
Where a person inflicts bodily injury or homicide it becomes incumbent upon him or, as mutual responsibility, upon a group of people representing him, to compensate the injured party in cash or kind. This compensation is called "diya". Where homicide is intentional, the diya or blood money is payable by the person committing that act. A third party (aqila) pays blood money only where the act is unintentional or where it is offered by the aqila on voluntary basis. (Malik Al-Muwatta)
A fatwa by Dr. Yusuf Al-Qardhawi states that Islamic insurance may exist in a condition where each participant contributes into a fund used to support one another.
Islam aims at establishing a social order under universal brotherhood. The underlying concept is that of mutual co-operation and help. The Prophet (pbuh) stressed:
In mutual compassion, love and kindness you will find the faithful like a body, so that if one part feels pain, the whole body responds with wakefulness and fever.
A Muslim is the brother of another Muslim; he neither wrongs him, nor leaves him without help, nor humiliates him'