For the majority of Muslims, sharia insurance is an option to guarantee the future without fear of usury or anything that is contrary to religious sharia.
This type of insurance is indeed based on the value of helping each other.
So, customers need not be afraid to feel harmed by the insurance.
Interested in learning more about this type of insurance? Don't worry, The Newbie has prepared a full explanation for you.
Come on, read this article to the end!
What is Sharia Insurance?
Based on the MUI Fatwa Number 21/DSN-MUI/X/2001, sharia insurance ( Ta'min, Takaful, or Tadhamun ) is an effort to protect and help each other between a number of people or parties.
This business is run through investment in the form of assets ( tabarru ').
When facing risk, the pattern of return is based on a contract (commitment) that is in accordance with sharia principles.
The covenant in question does not contain fraud ( gharar ), gambling ( maysir ), usury, persecution ( zhulm ), bribery ( risywah ), as well as illicit goods and immorality.
So far, many people have not dared to register for insurance because of the uncertainty in it.
Fear of being harmed, unwittingly undergoing prohibited gambling, and many other fears.
When using this insurance, you no longer need to be afraid of these things.
If one of the parties does not fulfill their obligations or there is a dispute, this matter will usually be resolved amicably.
If that doesn't work, the settlement will be made through the National Sharia Arbitration Board (BASN).
As mentioned earlier, this type of insurance uses Islamic law and the principle of helping each other as its basis.
In Indonesia itself, there are many private insurance companies that offer sharia products for both health and life insurance .
Each company is always supervised by DPS (Islamic supervisory board). So, you can immediately register for insurance with peace of mind because it has been confirmed to be halal, right?
How It Works
Not only understanding, The Newbie will also discuss how sharia insurance works so that you can understand it thoroughly.
By looking at how it works, you can immediately see the difference with conventional insurance.
The following is an explanation of each aspect of sharia insurance itself.
1. Acad
The two types of contracts in syariah insurance are contract tijarah (mudarabah) and contract tabarru ' (hibah).
The contract is tijarah used as the basis of the agreement for commercial purposes, while the tabarru 'is for the purpose of charity and helping each other.
Well, in each type of contract it must be stated about the rights and obligations of the participants (customers) and also the company.
Not only that, the contract must also contain the method and time of premium payment, as well as the type of contract and the agreed terms.
This will all be adjusted to the type of insurance you choose.
2. The position of each party
As with insurance in general, each party bound by an agreement in sharia insurance has its own position.
In the contract tijarah , the insurance company acts as the manager ( mudharib ) and the participant as the policy holder ( shahibul mal ).
The contract is tabarru ' different again. Participants give grants that will later be used to help other participants when disaster strikes.
Then, the company acts as the manager of the fund.
So far you understand, right?
3. Terms of the contract
The two contracts mentioned above also have their respective provisions.
The contract tabarru ' cannot be converted into a contract tijarah , while the reverse can be done.
The tijarah contract can be used as a contract tabarru ' , as long as the party whose rights are withheld has purified it.
4. Awards
Launching Investopedia , written premium or premium is the total amount of money that must be paid by insurance participants within a certain time.
In this insurance, the amount is in accordance with what is specified in the contract (whether it is tijarah or tabarru ').
In the calculation of this premium, there is no element of usury at all.
Companies usually calculate from a table of mortality (death) for life insurance and a table of morbidity (level of ease of getting sick).
Premiums from the tabarru' contract can be invested, and specifically for the tijarah contract, the investment results can be divided among the participants.
5. Claim
To get insurance benefits , you still need to make a claim.
The company will pay the claim in accordance with the agreement specified in the contract.
Well, the numbers can be different. Why so?
This is because the claims paid by the sharia insurance company will later be adjusted to the amount of premium you have paid.
So, there is no usury or profit taking from the company.
For contracts tijarah , participants have full claim rights.
It is different from the claim of the contract tabarru ' , because it is only limited to what is agreed in the contract.
6. Investment and reinsurance
This type of insurance investment must be carried out in accordance with Islamic law. The company is the holder of the trust who is obliged to invest the collected funds.
In terms of reinsurance, the company can only do reinsurance to companies that also practice sharia insurance.
Reinsurance itself is a term that describes a condition when a company protects itself against insurance risk, by using the services of other insurance companies.
7. Fund management
The last is how to manage funds in sharia insurance.
Fund management here can only be done by the board that is the trustee.
Well, the company gets a share of the results of the management of funds on the basis of agreement tijarah the collected .
For the management of contract funds tabarru ' , the company receives wages ( ujrah ).
How is it Different from Conventional Insurance?
Then, what is the difference between sharia insurance and conventional insurance? Why are Muslims more encouraged to use products from this insurance?
From the explanation about how it works, it's actually quite visible the difference.
One of the most basic differences is the agreement system.
Conventional insurance agreements are carried out like buying and selling in general, while sharia is adjusted to Islamic law. So, it has been confirmed that it is halal and without usury.
Another difference is from the management of the funds.
In conventional insurance, the premium is determined with the aim of bringing the maximum profit for the company.
In Islamic insurance, it's the opposite. The company determines the amount of premium transparently and in the interest of the policyholder himself.
Actually there are many more differences between these two types of insurance companies.
However, overall sharia insurance looks more profitable.
The reason is, the company does not take all the profits and does think about the welfare of its customers.
So, which company are you more interested in signing up for?
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