Thinking on the Similarity between Information Asymmetry Concept and al-Gharar in the Insurance Contract and the Implementation Guarantees

Nowadays, information asymmetry or inequality of information between the parties and consequently the ignorance of one side about issues related to the contract is an existing fact in all contracts. This relative ignorance of one of the contract parties ranges from minor to severe. From the perspective of Islamic jurisprudence, severe information asymmetry disrupts the contract economic character and the order established by the will of the parties and makes them confronted by al-gharar as a guarantee. In this article, by relying on library resources and with an analytical-descriptive approach, an attempt has been made to explain and distinguish the two concepts of information asymmetry and al-gharar, as well as the criteria for identifying them in the insurance contracts. The insurance contract is focused due to the fact that, on the one hand, information is doubly crucial as necessitated by the nature of the contract, and on the other, al-gharar is doubtfully attributed to the contract, which has been answered by emphasizing the negligent nature and the ignorance intentionally interwoven with the contract. However, the subtle point here is that the negligent nature of the insurance contract will not lead to the acceptance of any ignorance and asymmetry of information there, hence the lack of al-gharar as a consequence.