I know that Muslims should not use conventional insurance. But, what if Takaful is not available in the country and Muslims are forced to have insurance by the law. In that case, are Muslims allowed to use conventional insurance?
According to Dr. Monzer Kahf, a prominent Muslim economist and counselor, the prohibition of riba (usury), gharar (uncertainty), and Maysir (speculation) are not intended to make life difficult but rather to prevent injustice and make social life better and fairer.
If takaful is not available, taking conventional insurance (car, hazard, life, pension, etc.) is permissible provided there is no Islamic insurance (takaful) available in the country.