Questioning Insurance In Islam (part 2)

INSURANCE LAW

Tijari insurance (which is a business for profit) with all types is haraam, because:

1. Insurance agreements are agreements that contain the replacement property and uncertainties include the danger that very much.

Abu Hurayrah said:

"The Prophet sallallaahu 'alaihi wa sallam forbade the sale and purchase and sale and purchase gharar gravel." (Narrated by Muslim. 1513)


Buying and selling with gravel, as a seller says "I sold the affected fabric that I throw pebbles." Or "I started here selling this land to a distance of gravel that I throw." Or something that is not immediately clear.

Who's buying and selling is selling gharar containing lack of clarity, intrigue, and unable to deliver the goods, such as selling fish in the pond, sell birds that fly through the air, and the like. (See Sharh Muslim by Imam Nawawi)

2. Insurance including types of gambling. Because of him there is danger of loss in exchange of property, loss by without doing harm or cause, and profits with no benefits or with benefits that are not worth it. Because the new deposit insurance clients sometimes once installments, then the accident occurred, so the insurance company suffers a loss of insurance money. Or not an accident, so that insurance companies take advantage of insurance installments, installments with no benefits.

3. Insurance agreements contain usury. Because profits are found by the company without compensation, while an additional customer benefit from the wealth that have nothing to return anyway. And the prohibition of usury in Islam is very hard.

4. Insurance is a race that is haraam, because it contains a lack of clarity, the danger of losses, and gambling. And the Islamic shariah does not allow race that the winner took her possessions, except that there is a defense and to raise the victory of Islam with Islam or with weapons hujjah. And the Prophet sallallaahu 'alaihi wa sallam has limited the race that the winner took the wages of three kinds:

"Not allowed to take the prize possessions except in the camel race, horse, or arrows." (Narrated by Abu Dawood, no. 2574; Tirmidhi, no. 1700)

That may not take property with race except in one of the three cases above. Because the three-and-semaknanya including preparation of war and force the enemy to fight jihad. And give a gift to him is the encouragement to jihad.
5. Insurance agreement, in it contains other people taking property without compensation, this is a bathil way.

6. Insurance agreements require something not required by the Shari'ah. Because insurance companies do not make an accident and not doing things that cause accidents, but he was obliged to pay the claim. That's because the agreement with the client to ensure the danger in case of installment payments in exchange for the customer.

Based on this information, then a lot of fatwas of the scholars who forbid tijari with all types of insurance. From this description it appears that many outstanding insurance, which was conducted as a business for profit, including the case which is prohibited in the Shari'ah. The insurance is allowed at At-Ta'miin Ta'aawuniy (mutual insurance) as above. And Allaah knows best.

Readmore → Questioning Insurance In Islam (part 2)

Questioning Insurance In Islam (part 1)

Insurance is a treaty of guarantee from the provider of collateral (ie insurance companies) to provide a number of property or wages regularly or replace other items, to the parties that was given guarantees (ie insurance clients), at the time of the accident or the certainty of danger, which is described in the agreement , that instead of installments or payments made by customers to the company.

From this explanation is evident that in the insurance agreement that there are elements:

1. The form and amount of collateral that will be given the insurance company.
2. Danger or calamity that occurred.
3. Or installment payments paid by the customer.

INSURANCE HISTORY

Insurance first appeared in the form of travel insurance in the ocean that emerged in the 14th century AD. But this insurance has a history since pre-Christian roots, namely, that someone lend some treasure usury to ship to sail, if the ship was destroyed, then the loan is missing. When the ship survived, then the loan would be returned with usury (extra) agreed. The ship was pledged as collateral while the loan repayments and ribanya.

Thus the origin of the insurance company which is a treaty that is usury, based on the elements and confront the dangers of gambling. Permanent insurance such as appears first.


And then came the insurance on the mainland among the nations 17th-century England in AD. Insurance forms, which first appeared is fire insurance. This comes after the great fires in London in the year 1666 AD. More than 13 thousand houses and about 100 churches become victims of fire. Then fire insurance is spreading in many countries outside the UK on 18th century AD, especially in Germany, France and the United States. Then the spread and increased insurance-type species, especially in the 20th century AD.

KINDS OF INSURANCE

Judging from the shape and purpose, there are two types of insurance:

1) At-at-Tijaariy Ta'miin

Insurance is aimed at making profit, or used as insurance business, insurers who have installment plans. This installment automatically become the property insurance company in lieu of payment he had undertaken in case of disaster, or what was agreed. If the amount of payments from the company is greater than the money in installments, then it is borne by the company, and is a disadvantage. If no disaster occurs, then it belongs to the installment of the company without any compensation. And this is an advantage. This is insurance that dibacarakan here. And speculation is forbidden because it is harmful either party.

2) At-at-Ta'aawuniy Ta'miin

Or also called at-at-Tabaaduliy Ta'miin or at-Ta'miin al-Islamiy. Ie insurance or insurance mutual assistance in accordance with the Islamic religion. It does not aim to make profits, but only in the form of helping to bear hardship. For example: a group of people together to raise money, with this money they are helping people affected by disasters. This Islamic insurance company, do not automatically have the cash installment of the customer. Similarly, the money that is paid when the accident occurred is not owned by the company, but the common property. This company is just saving, develop, and provide assistance.

In addition there are other types of insurance, namely:

3) At-Ta'miin al-Ijtima'iy (social security)

It also does not seek profit, and not a special insurance on someone who is afraid of certain disaster. But it aims to help people, who might number in the millions of people. As performed by states against their employees, which is known as pension regulations. That is by cutting their salaries by a certain percentage, and when it has until retirement, the money is given monthly pension in the form of salary, or given severance pay as well as to assist his life. Even this type of insurance was not included. This is not why, as long as it is not stored in the bank that runs the usury.

Various Kinds of Insurance Tijari

At-at-Tijaariy Ta'miin insurance, which aims to make profits very much macanya, among others:

1) Accident Insurance

This type of insurance carried on the property-owned property, such as theft insurance, fire insurance, and such. Also performed on account of customers, such as vehicle accident insurance, accident insurance, and the like.

2) Personal Insurance

Ie insurance from the dangers associated with the man himself, on the side of life, health, or safety. This includes life insurance and accident insurance-agency plight.

3) Life Insurance

That agreement, which requires insurance companies to give some money to customers or to any third person, in lieu of repayment installments, provided, when the demise of our customers, or keep his client until a certain age. This case there are several kinds:

Insurance for Death Situation

Is given a sum of money at the time of death of customers. There are three kinds:

a) For Life Insurance

Namely the insurance company gave some money to people who were insured at the time of death of people who pay insurance (customer). If the insurance for a specific term, like 20 years for example, and customers were to die before 20 years passed, then the payments fall, and those who are insured are entitled to the amount of insurance money in full. This means losses for the company. And if customers were still alive over 20 years, the payments stopped, but the insurance money is not given to people who diansuransikan except after death of client.

b) Insurance Over Time

Ie customers pay insurance installments, and the company will pay an amount of insurance money to people who diansuransikan if the customer died in the insurance lapse. If customers are still living through an insurance lapse, so he paid ansuran had disappeared, and the company took the money without any benefits. This type of insurance is very clear element of gambling.

c) During His life Insurance Insured People

Namely the insurance company gave some money to people who are insured, if he remains alive after the death of the person paying the insurance (customer). Diansuransikan But if the person died before the person paying the insurance (customer), then the insurance stops, and the treasures that have been deposited by a customer is lost. This type of insurance is also very clear element of gambling.

Permanent Life Insurance for Condition

Namely the survival of the customer, this is the reverse of the form 1. a. Which customers pay a certain amount of money insurance to insurance companies, and companies will also pay a certain sum of money, too-the more-at the time specified, if the customer was still alive until that time. But if the customer dies before the time set, then the insurance stops, and the treasures that have been deposited by a customer is lost. And heirs can not use them. This type of insurance is also very clear element of gambling.

Combined Insurance

Namely the merger of two types of insurance above. The insurance company guarantees payment of insurance money to people who are insured, if the customer died at specified intervals, or pay to the customer if he were still alive after the completion of insurance. Therefore angsuransi installment of this type is greater than the previous two types.

From Disaster-insurance plight Agency

Namely the insurance company guarantees payment of insurance money to people who are insured, if the customer-related calamity strikes the body, during the period of insurance. Or given to anyone in particular, if the customers who follow the insurance death. This type of health insurance included, and sometimes health insurance covers all types of disease, or certain body disease, or surgical illness, or some disease. And the insurance transaction documents to determine which types of hazards that are insured and who have insurance coverage with the company.

Readmore → Questioning Insurance In Islam (part 1)

Why No to Conventional Insurance

In modern business, one of the ways to reduce the risk of loss due to misfortunes is through insurance. The concept of insurance where resources are pooled to help the needy does not necessarily contradict Islamic principles.
Three important differences distinguish conventional insurance from Takaful:

1. Conventional insurance involves the elements of excessive uncertainty (gharar) in the contract of insurance;
2. Gambling (maysir) as the consequences of the presence of excessive uncertainty that rely on future outcomes
3. Interest (riba) in the investment activities of the conventional insurance companies;
4. Conventional insurance companies are motivated by the desire for profit for the shareholders;
5. Conventional system of insurance can be subject to exploitation. For example, it is possible to charge high premium (especially in monopolistic situations) with the full benefit of such over-pricing going to the company.


The key difference between Takaful and conventional insurance rests in the way the risk is assessed and handled, as well as how the Takaful fund is managed. Further differences are also present in the relationship between the operator (under conventional insurance using the term: insurer) and the participants (under conventional it is the insured or the assured). Takaful business is also different from the conventional insurance in which the policyholders, rather than the shareholders, solely benefit from the profits generated from the Takaful and Investment assets.

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Prohibitions of Gharar, Maysir and Riba

Gharar: An insurance contract contains gharar because, when a claim is not made, one party (insurance company) may acquire all the profits (premium) gained whereas the other party (participant) may not obtain any profit whatsoever. Ibn Taimiyah, a leading Muslim scholar, further reasoned "Gharar found in the contract exists because one party acquired profit while the other party did not". The prohibition on gharar would require all investment gains and losses to eventually be apportioned in order to avoid excessive uncertainty with respect to a return on the policyholder's investment.

Maysir: Islamic scholars have stated that maysir (gambling) and gharar are inter-related. Where there are elements of gharar, elements of maysir is usually present. Maysir exists in an insurance contract when; the policy holder contributes a small amount of premium in the hope to gain a larger sum; the policy holder loses the money paid for the premium when the event that has been insured for does not occur; the company will be in deficit if the claims are higher that the amount contributed by the policy holders.

Riba: Conventional endowment insurance policies promising a contractually-guaranteed payment, hence offends the riba prohibition. The element of riba also exists in the profit of investments used for the payment of policyholders’ claims by the conventional insurance companies. This is because most of the insurance funds are invested by them in financial instruments such as bonds and stacks which may contain elements of Riba.

Readmore → Prohibitions of Gharar, Maysir and Riba

How does Takaful (Islamic Insurance) Work

All participants (policyholders) agree to guarantee each other and, instead of paying premiums, they make contributions to a mutual fund, or pool. The pool of collected contributions creates the Takaful fund.

The amount of contribution that each participant makes is based on the type of cover they require, and on their personal circumstances. As in conventional insurance, the policy (Takaful Contract) specifies the nature of the risk and period of cover.

The Takaful fund is managed and administered on behalf of the participants by a Takaful Operator who charges an agreed fee to cover costs. These costs include the costs of sales and marketing, underwriting, and claims management.

Any claims made by participants are paid out of the Takaful fund and any remaining surpluses, after making provisions for likely cost of future claims and other reserves, belong to the participants in the fund, and not the Takaful Operator, and may be distributed to the participants in the form of cash dividends or distributions, alternatively in reduction in future contributions.

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The Concept of Islamic Insurance

The first Islamic insurance company was set up in Sudan in 1979. Today there are many Islamic insurance operators in Muslim as well as non-Muslim countries. The main concept of Islamic insurance is that it is an alternative to conventional insurance, with characteristics and features that comply with shariah requirements. This is done by eliminating the objections against conventional insurance. “The term takaful is an infinitive noun which is derived from the Arabic root verb kafal’ or kafala, meaning to guarantee or bear responsibility for.” (Kassar, 2008, p. 26).

The main features of Islamic insurance are:

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cooperative risk sharing by using charitable donations to eliminate gharar and riba;
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clear financial segregation between the participant (insured) and the operator (insurance company);
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shariah-compliant underwriting policies and investment strategies.

Cooperative Risk Sharing

The characteristics of a cooperative include self-responsibility, democracy, equality, equity, solidarity, honesty, openness, social responsibility, and caring for others. While mutuality or cooperative risk sharing is at the core of Islamic insurance, it cannot alone create an Islamic insurance operation. Islamic insurance is based on more than one contractual relationship: The first relationship is a mutual insurance contract between policyholders (contributors) and each other. This is similar to a pure mutual insurance relationship, taking into consideration the concept of donation (tabarru) instead of premiums and an ethical framework of Islamic transactions. The main features behind cooperative insurance are:

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Policyholders pay premiums to a cooperative fund with the intention of it being a donation to those who will suffer losses (tabarru).
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Policyholders are entitled to receive any surplus resulting from the operation of the cooperative insurance fund.
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Policyholders are liable to make up for any deficits that result from the operation of the cooperative insurance fund.
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The amount of contribution (premium) differs from one participant to another, based on the degree of risk in general insurances and actuarial principles in life assurance.
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There is no unified system to operate the treatment of surplus and deficit. There is therefore more than one model accepted by shariah scholars being used in practice.

Clear Segregation Between Participant and Operator

In conventional insurance, the insurance company is a profit-making organization that aims to maximize profit by accepting the financial burden of others’ losses. The insurance company is owned by shareholders who are entitled to receive any profit and are responsible for financing any deficit. Under Islamic insurance, the system is that the insurance company’s role is restricted to managing the portfolio and investing the insurance contributions for and on behalf of the participants. The relationship between the participants and the insurance company (as an operator, not as an insurer) is different. There are four different models in operation: The mudarabh model, the wakalah model, the hybrid mudarabh–wakalah model, and the pure cooperative model (non-profit). “The overarching goal of Takaful is brotherhood, solidarity, protection and mutual cooperation between members” (Kassar, 2008, p. 66).
Shariah-Compliant Policies and Strategies

Ethical insurers invest money in a responsible way in industries that are ethically sound and do not harm the environment or people. Islamic insurance is similar, except that the ethical considerations are extended to those which do not contravene the religion of Islam and are monitored by a shariah board, which is part of the company structure. In particular, the investment and underwriting policies need to be free of any involvement with the prohibited activities of gambling, alcohol, pork, armaments, tobacco, and interest-bearing activities, loans, and securities.

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Prohibited Factors of Insurance

Several fatawa (the plural of fatwa, meaning an answer to a question related to an issue of shariah) have been issued by eminent Muslim scholars on the subject of insurance. The objections tend to relate to the insurance contract itself or to insurance market practice in general.

Objections relating to the insurance contract itself are those of riba (usury), gharar (uncertainty), and maysir (gambling). The other objections relating to market practice are usually concerned with two issues: The first is that insurance companies’ investment policies are generally interest-bearing (which is not acceptable in Islam), and the second issue is the fact that life assurance is considered to breach Islamic inheritance rules by distributing the sum assured among beneficiaries. These objections relating to market practice can be easily overcome by the insurer making changes to their company policy, as they do not affect the insurance contract itself.

The objections related to the contract itself, however, require the restructuring of insurance contracts to be in line with shariah.
Riba (Usury)

Under a conventional insurance contract, the insured pays the insurance company a premium (either as a lump sum in general insurance or as installments in life insurance), in exchange for financial compensation at the time of a claim, subject to the happening of an insured occurrence or event. Claims are generally larger amounts than the premium paid. Islamic law objects to this payment on the grounds that a small amount of money (premium) is being exchanged for a larger amount of money (claim). Scholars consider this an unjustified increase of money, and therefore riba. Islamic insurers therefore have to structure their operations and investments to avoid riba.
Gharar (Uncertainty)

Gharar can be defined as uncertainty or ambiguity. Islamic law seeks to avoid ambiguity in contracts, in order to prevent disputes and conflict between parties. This is a general Islamic principle that must be applied to all contracts, including insurance.

In the case of conventional insurance, neither the insurer nor the insured knows the outcome of the contract (i.e., whether a loss will occur or not). The insurer is entitled to get the premium in all cases, whereas the insured may not receive a claim because the payment of claims depends on the probability of loss occurrence (which is a random variable). Other uncertain elements are as to when the claim may be paid and how much the insured may receive.

In life assurance contracts, gharar can be seen to exist even in the premium, as the insured party does not know how much he will pay to the insurance company each year, or for how many years. The insured may know the monthly or yearly premium, but he does not know how much he will pay to the insurer before he dies. In general insurance (nonlife insurance), the premium is pre-agreed, but there is gharar in the claim amount. Therefore gharar exists in all insurance contracts, either in premiums or in claims. In Islamic insurance, scholars agree that engaging in takaful transactions, with a donation element as part of their contribution, offsets gharar.
Maysir (Gambling)

Some arguments against conventional insurance are based on the grounds that insurance contracts are basically gambling contracts. Islam rejects any contract where financial gain comes from chance or speculation. Insurance, however, needs to comply with the principle of insurable interest. This principle requires a financial and legal relationship between the insured and the subject matter of insurance. The insured is only entitled to get a claim if he proves his insurable interest, and this feature therefore nullifies the notion that insurance is a gamble.

The other difference between gambling and insurance is that the first is a speculative risk (which is uninsurable), while the latter consists of pure risk only (i.e., the insured should not make a gain but should be put back into the same financial position as before the loss occurred).

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What is Takaful? - Islamic Insurance basic knowledge

This concept has been practiced in various forms for over 1400 years. It originates from the Arabic word Kafalah, which means "guaranteeing each other" or "joint guarantee". The concept is in line with the principles of compensation and shared responsibilities among the community.

Takaful originated within the ancient Arab tribes as a pooled liability that obliged those who committed offences against members of a different tribe to pay compensation to the victims or their heirs. This principle later extended to many walks of life, including sea trade, in which participants contributed to a fund to cover anyone in a group who suffered mishaps on sea voyages.

In modern-day conventional insurance, the insurance vendor (the insurance company) sells policies and invests the proceeds for the profit of its shareholders, who are not necessarily policyholders. There is therefore a clear disjunction between policyholders and shareholders. Payouts to policyholders may vary depending on financial performance, but a minimum positive return is always contractually guaranteed.

Takaful is commonly referred to as Islamic insurance; this is due to the apparent similarity between the contract of kafalah (guarantee) and that of insurance.

However, takaful is founded on the cooperative principle and on the principle of separation between the funds and operations of shareholders, thus passing the ownership of the Takaful (Insurance) fund and operations to the policyholders. Muslim jurists conclude that insurance in Islam should be based on principles of mutuality and co-operation, encompassing the elements of shared responsibility, joint indemnity, common interest and solidarity.

In takaful, the policyholders are joint investors with the insurance vendor (the takaful operator), who acts as a mudarib – a manager or an entrepreneurial agent for the policyholders. The policyholders share in the investment pool's profits as well as its losses. A positive return on policies is not legally guaranteed, as any fixed profit guarantee would be akin to receiving interest and offend the prohibition against riba.

For some time conventional insurance was considered to be incompatible with the Shari’ah that prohibit excessive uncertainty in dealings and investment in interest-bearing assets; both are inherent factors in conventional insurance business.

However, takaful complies with the Shari’ah (which outlines the principles of compensation and shared responsibilities among the community) and has been approved by Muslim scholars. There is now general, health and family (life) takaful plans available for the Muslim communities.

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The Mahr in Islamic Marriage Contracts

Mahr is the amount of money, or its equivalent, paid by the husband to his future wife. Contrary to the popular notion that mahr is dowry, it is not. A dowry is what the wife contributes to her marriage while mahr is an obligation on the husband to pay his future wife. Others call the mahr a ‘gift’ given by the husband; it is not a ‘gift’ either, because it is an obligation mandated by the Qur’an. The Qur’an calls it sadaq; it reads: “Wa aatoo ann-nissaa’ saduqaatihinna nihlatan” (and give the women their mahr with a good heart.) Qur’an 4: 4
The mahr is an obligation required by Islamic law from the husband to be paid to his future wife. Thus, it must be stipulated in the Islamic marriage contract. If no stipulation is recorded in the contract, the qadi (or religious judge) will assign the amount of mahr. The amount of mahr becomes a property of the wife alone.
Muslim schools of jurisprudence in the Sunni traditions, differ on the definition of the mahr. The Hanafi School defines mahr as “the added money given by the husband to his [future] wife for iza’a ihtibassiha, keep her in his house (see al-Sarkassi, the Mabssut, vol. 5, pp 62-63, Arabic Version). Another author of the Hanafi Schools defines the mahr as “the money, which is obligatory on the husband in ikd al-nikah (the marriage contract) for manafi’ al-bid’ (sexual pleasure). (See ibn al-Hamam, Sharih Fath al-Qadeer, vol. 3, p. 304, Arabic version).
The Hanbali School of jurisprudence defines mahr as “the money paid by the husband for the purpose of nikah (marriage). (See ibn Kadamah, Al-Mughni, vol. 6, p. 679, Arabic version).
The Malike and Shafi’i Schools defines the mahr as “the money due to the future wife in return for [the husband’s] haqq al-isstimta’ (sexual pleasure) in the marriage contract”. (See al-Hattab Muhammad bin Abdel Rahman al-Mughrabi, Mawahib al-Jalil li-Sharh Mukhtassar Khalil, vol. 5, p. 172-Maliki Jurisprudence). For Shafi’i School see al-Nawawi, Kitab al-Majmu’, vol. 18 p. 605). All these references are cited by Sheikh Mahmud Muhammad al-Sheikh, Al-Mahr fi Al-Islam bayna al-madi wal-hadir, published by al-Maktaba al-Assriyya liltibaa’a wal nashr, Beirut, Lebanon, 2003, Arabic version.
The Maliki and Shafi’i Schools of jurisprudence regard the mahr as “the money paid for the future wife in return for sexual pleasure is an integral part of the Islamic marriage contracr and its source is prescribed in the Qur’an. Sura al-Nissaa reads the following:
“Fa ma isstamta’tum bihi minhunn fa aatoohunna ujoorahunna” (So for that pleasure which you have enjoyed from them, give them their prescribed compensation). Qur’an 4: 25
Numerous Hadith (sayings attributed to the Prophet of Islam) provisions refer to the obligatory nature of the mahr in Islamic marriage contracts. (See for example Ans bin Malik bin Damdam; Al-Bukhari, Sa’ad bin al-Rabi’ bin Khazraj. They are all cited by Al-Sheikh Mahmud Muhammad al-Sheik, Al-mahr.)
Traditionally, Islamic marriage contracts lists two types of mahr; one is called muqaddam (upfront, or immediate at the signing of the contract), or mu’akhar (deferred to be paid in the event of divorce or death of the husband.)

The Amount of Mahr
Neither the Qur’an, nor the Hadith stipulates the maximum amount of mahr to be paid by the husband. As to the lower amount of mahr, Islamic scholars differed on this. The Hanafi School regarded the lower amount to be not less than ten Dirahms (around ten US Dollars). The Maliki School considers the lower mahr to be not less than three Dirhams (or three US Dollars.)
The Hanbali and Shafi’i Schools do not put a limit to the lower amount of mahr; both schools agree that the lower amount could be “a ring made out of iron” or “pair of shoes”, or a few ounces of “wheat, or dates”, or “teaching the future wife verses from the Qur’an”. In all of these, the future wife has to express her acceptance to whatever the amount is.
Modern Islamic marriage contracts are pre-printed forms, filled by the ‘imam/qadi’ (religious leader or religious judge). The form has empty space to fill the name and address of the husband and the name and address of the bride. The contract must include the names and addresses of two adult male witnesses. And the place and address where the marriage contract is signed
Both parties to the marriage contract must express their consent to the marriage, verbally and in writing. This is done through a formal proposal of ijab (an offer to marry) and qubul (an acceptance to marry), in the presence of a wali, a male guardian who looks out for the best interest of the bride. It must include the amount of muqaddam/mu’ajjal mahr, and the amount of the mu’akhar (deferred).
After the contract is signed, the couple is recognized as legally married and enjoy the rights and obligations stipulated by the Islamic Shari’a (law). The marriage contract may be solemnized in a mosque and usually signed in triplicate: one copy should be given to the bride, one to the bridegroom, and the third must remain deposited with the Registrar, imam/qadi (religious leader or religious judge).

The Absence of Mahr Provision in the Marriage Contract
If the marriage does not include a provision for the mahr, the contract is considered to be legal. The three Schools of jurisprudence: Hanafi, Shafi’i and Hanbali recognize the fact that the mahr provision is not a main factor, nor a condition for the marriage. These three Schools believe that the mahr is an obligation on the husband regardless of whether it is written in the marriage contract or not (see Mahmud Muhammad al-Sheikh, al-Mahr, published by al-Maktabah al-Assriyya, Beirut, 2003, Arabic version). Accordingly, if the marriage contract is signed by the parties without a provision of the mahr, or if they assign a mahr, which is considered to be illegal under Islamic Shari’a, or if the parties agree not to include a mahr provision, in all these cases the conditions are null, the contract is legal and the husband has to pay a mahr equivalent to a mahr given to another women of the same status as that of his wife.
The Maliki School rejected this interpretation and considered the mahr provision in the contract, necessary. However, this School regards such a marriage to be legal if it was consummated. If the marriage was not consummated, then the marriage is mafsookh (a reason for separation); if he divorces his wife without any agreement on the mahr issue, then he has to pay her mut’ah (money paid to her in return for the sexual pleasure he had with her). But if he dies before any agreement reached between the couple, then the wife is entitled to inherit her share from his estate.
Finally, the mahr must be legal. Thus, alcoholic beverages and the meat of the swine or pig cannot be given to the future wife as mahr because, under Islamic law, it is unlawful to transact these items. If such illegal items were listed in the marriage contract, the imam/qadi may substitute those by legal items.

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