Sharia Insurance: something Solution, Session 2

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Any type and type of insurance, based on the principle of cooperation (cooperation) and mutuality (mutuality), which is actually in line with the principles of Islam. The principle of cooperation and mutual help in insurance is operationally translated as an agreement between the insurer (insurance company) and the insured (the insurer) with the insurer get premium from the insured to find the insured when the insured feel the loss, destruction or loss due to uncertain events and with not deliberate; or the insurer distributes a payment based on the death or life of a person.

Reference insurance by such operational pattern, based on its contract can be classified as an exchange (raqad mu'awadhah), such as buying and selling. Insurers (insurance companies) distribute guarantees or coverage to the insured and make it the insured (the insurer) to pay the premium. The amount of warranty as well as the premium and time of the agreement are agreed upon by the parties

This method of exchange in the attention of Islam contains defects in the form of uncertainty or gharar, the chapter is based on an uncertain event. The dual-purpose product, for example, the participant is obliged to pay the premium if the participant lives during the time of the agreement to find the sum insured. Uncertainty in this instance is the amount of premium paid, the premium payment article is based on the life or death of the participant at the time of the agreement. if reversed for insurance products futures, uncertainty is within the amount of coverage that will be accepted by the insured

Furthermore, transactions containing uncertainty similar to this may be detrimental to either party, which is the most commonly disadvantaged parties. Participants or their heirs can get the sum insured is greater or less than the premium paid or not get the sum assured equivalent. In other words, insurance is identical with the chances, which in Islamic fiqh terminology is said to be maysir. In other problems, if the participant stops before the expiration of the agreement, especially towards the beginning of the agreement period, the participants will not find the return of the paid premium (charred) or find the return in a very small amount compared to the premium they have paid. some of the premium funds received by the company after that are invested. In this connection, the exchange contract does not require clarity in the allocation of premium funds, the article of premium funds already paid by the competitor, the status of the company

Thus the company can invest the premium funds anywhere and with any method, including in the areas of business that contain elements of immoral or prohibited by the Shari'a (riba, liquor, pornography, etc.). if the premium fund and the result of its investment become the origin of the money of sum insured, the participants who get the sum insured can not distance themselves from consuming the ribawi funds and funds sourced from other vice business

Sharia Insurance

The noble teachings of Islam command us to help people who lost property, the death of relatives, or other calamities. the treatment is none other than the form of awareness and solidarity (itsar), and help-help (ta'awun) between the population of society, whether Muslim or non-Muslim. With such methods, the sense of brotherhood (ukhuwah) will be more robust. Those who are calamitous are not overwhelmed with sadness that is protracted and does not fall into despair, even avoids the possibility of falling into poverty or loss of time ahead. However, the ways of sponsorship are immediately in line with the Shari'a (42:13). should not contain elements of gharar (uncertainty), maysir (chancy), usury, and other things that are immoral. In other words, ta'awun as soon as possible placed on the values ​​of piety for the virtue, and not the violation of sharia law that can trigger disagreement or hostility. this subject is as God commands in the letter of Al-Maidah: 2: "Help one another to help you in virtue and piety, and do not help each other -help in sin and hostility"

Takaful Insurance is none other than alternative process, precisely substitute, over conventional insurance pattern that applies process or Akad exchange that is not in line with syariat Islam. against the Takaful process, each participant intends to help one another by setting aside some funds as a contribution of virtue (tabarru '). This fund is used to support anyone among the insurance participants who feel the calamity. So not in the form of an exchange contract between the two parties, but a contract for mutual help-help (takaafuli) among all participants

All the premium funds collected are managed by the company for investment, reinsurance, benefit distribution, and distribution of operating surplus. for all these management services, the company requests a defined contribution of participants and approved by the participant and the area of the operating surplus as agreed by the company with the participant whose percentage is determined from the beginning

Solidarity, Transparency, and Consistency

The phenomenon of Takaful insurance is a unique phenomenon (al-ghuraba) in the midst of capitalistic and individualistic economic currents. Financially, the Takaful process allows for better (benefit) benefits. synonymous with it, the spirit of solidarity was fostered through the contribution fee (tabarru ') insurance participants

The tabarru system ' as well as the result (mudharabah) defined in the Takaful operational scheme requires transparency in the level of funds and management. Similarly, in the case of management cost contributions, set aside from the first-year premiums, is clearly defined and becomes the area of the participant's agreement. By that article from the beginning, the participants clearly recognize the premium components they deposit, ie tabarru '(duty contributions), savings (absolute rights of participants), and contribution of management costs (30% of first-year premiums). besides that, the participants can look at the pernyebaran from time to time pernyebaran the cash value of the policy, namely the accumulation of savings and share the results. Therefore when the participant intends to resign within the terms of the terms of the article a matter, the cash value that can be received can be calculated in value as well as clear the source (derived from savings as well as revenue share). Similarly, death claims received by the participant heir, consisting of the benefit of insurance or compensation of virtues (sourced from tabarru- tabarru 'participants), the savings have been deposited and the result of the savings

In the case of investment, in addition to profitability considerations, business conformity with the provisions of sharia is none other than the investment decision indicator factor. By that article, the role of the Sharia Supervisory Board becomes very serious in the dynamics of the development of sharia insurance business, the subject that is not created in conventional insurance

Finally, it should not be mistaken if it is called if the operationalization of Sharia Insurance as described above and the involvement of the Sharia Supervisory Board in the entire chain of activities and products of Sharia Insurance describe the consistency of Takaful Insurance as a process of ta'awun (cooperation of help-help) the value of Islamic sharia.
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