Commercial insurance, which insurance companies carry out, does not achieve the legal characteristic for co-operation and joint responsibility though both reciprocal insurance and social insurance achieve the functional characteristic which Islam prescribed for co-operation and making sacrifices. So these two types of insurance exist [based] on the intention of co-operation, joint responsibility and donation without desiring to pursue profits. Accordingly, they are both hence considered, in our view, a proper application of the theory of insurance. Moreover, one may apply reciprocal insurance through co-operatives in all its forms, trade unions and mass institutions. As for social insurance, the state carries it out with the intention of insuring some classes of the nation against specific dangers.