The Ruling on Commercial Insurance

Religious Authority: 
Abdul-Aziz ibn Baaz
Fatwa Question or Essay Title: 
If a businessman makes a deal with a foreign company for rice, sugar or tea, for example, the business takes out insurance on the property against shipwreck, fire and catastrophe, he pays the insurance at a rate of two percent against the value of the property. Then when the property arrives, if any loss has occurred, he applies to the insurance and companies and they reimburse him for the value of the loss. Even if the ship sinks, the insurance company will compensate him for the whole value of the property. What is the ruling on this practice?

If the matter is as mentioned, then that is the type of commercial insurance that is forbidden, because of the excessive harm and the gambling it includes - and both of these are major sins.