Definition of Takaful

Definition of Takaful 
Definition according to Shari'ah insurance National Shariah Council is an attempt to protect each other and mutual help among people through investment in assets and or tabarru ' which gives the pattern of return to face the risks / dangers of certain covenants through in accordance with sharia .Takaful is a mutual effort and mutual help protect among a number of people / parties through investment in assets and or tabarru ' which gives the pattern of return to face a particular risk through the contract ( engagement ) in accordance with Sharia . Takaful is one of the Islamic economic system is based on universal and apply to all the assurance and segments of society . Takaful does not contain things like uncertainty , gambling , usury , abuse, bribery , illicit goods and immoral .Insurance is also called the Shari'ah meaning ta'awun insurance please help or mutual aid . Therefore it can be said that the basic principle ta'awun Insurance law is the basis of mutual tolerance towards fellow human beings to establish unity in disaster relieve experienced participants . This principle is in accordance with the word of Allah in surah Al Maidah verse 2 , which means : " And help one another in goodness and piety menolonglah and do not help each other in sin and enmity "Insurance which has been used by the majority of the public ( non-Islamic ) insurance is not known by the predecessors of the Islamic jurists , because it does not include a transaction known by the Islamic Fiqh , nor from among the companions who discuss legal . 
The most fundamental difference between the system of Islamic insurance to the conventional insurance system .1 . Conventional insurance only recognize or enforce the claims of policyholders , such as accidents , death or things that are not desirable and all that has been written in the contract agreement . Consequently , if the policyholder is not stricken , during contract still in progress , then the policyholder can not claim it . This system invites policyholders get around to getting naughty with claims greater than the funds that have been insured . This Penyiasatan mengiring specific engineering , such as arson attempts to kill even though not done directly by the holder of the engineering polis.Praktek a criminal act against the law , even a very disfiguring human dignity . For victims who suffer , not just insurance companies , but also members of the public who may have never associated with asuransi.Sementara institution , if the type of insurance products are not associated with events such as death , fire , accident or disaster , the conventional insurance policyholder , nor can enjoy duty refund has not been passed during the times specified . Also , if the policyholder can not pass on its obligations , then the funds that had been deposited into hangus.Prinsip the basis of conventional insurance , insurance Shari'ah clearly different .2 . The basic principle of takaful Shari'ah departed from a philosophy that humans originated from a single lineage, of Adam and Eve . Thus , man is essentially a large family . In order to achieve a common life , human beings should please help ( ta'awun ) and mutually do good ( tabarru ) and bear one another ( Takaful ) . This principle is the foundation for the activities of humans as social beings . From this philosophical footing , at least there are three basic principles of the Shari'ah insurance , which is responsible for each other , working together and mutually protect each other suffering .

Advantage Insurance Sharia
 Islamic insurance benefits outlined very different to conventional insurance , ie , the policyholder is positioned as savers , then by law , the funds are insured , together with savings as well . With its position as savings , then there are two advantages to be gained directly . First , the Islamic insurance fund for each policyholder will receive additional value . This additional value is not of interest , but the result of a system mudharabah financial benefit of the insurance policy of cooperation with banks Shari'ah Shari'ah . In this case , the Shari'ah insurance , the policyholder entrusts funds as investment instruments managed institutions Shari'ah finance , eg bank or mutual fund Shari'ah Shari'ah . premiums for the context in question is a premium savings . While the Bank's Shariah system there is a provision that anyone who participated in the project business , he will get the results on gains from cooperation . Because it is the policyholder , are entitled to the profits achieved shariah bank . If we examine the addition of an insurance fund that enjoyed by the policyholder , is the real fruit of a partnership or cooperation policy between Sharia Sharia Insurance and Bank '' ah . This is one of the hallmarks of Sharia Insurance . In this case we can ask the comparatively between conventional insurance with insurance Shari'ah . Have insurance fund increase in value occurs . Only insured Shari'ah would happen . Other insurance is not at all clear . second , that the policyholder at any time , for any reason unable to continue the relationship with the insurance agency Shari'ah , so he unilaterally cut ties with insurers Shari'ah . This termination does not cause the funds forfeited . He is the policyholder , has the right and obligation to recover the funds are insured . It is not completely ( 100 % ) of funds that have been insured , it will be returned . Because the policyholder funds will be reduced tabarru funds ( fund policy ) . And it must be noted , that the policyholder still get additional funds from the premiums that have been paid in capital results . Although there was a slight reduction , but , it is far better returns than conventional insurance system that burned a total of policyholder funds . Further important to note , that the practice of Islamic insurance are free from prohibited practices .

Sharia Insurance 
In practice sharia insurance , return of premium to most customers in the form of surplus sharing mechanism glance similar to the conventional insurance is known as â € Oeno Claim Discount ( NCD ) â €? . For example , a vehicle insurance policy holder in a conventional insurance company will get a discount at the time the policy was extended again in the next year (provided during the coverage period does not claim ) . From the point of Islamic insurance , such as the discount mechanism is of course different from the mudaraba as NCD is only applied if the policy holder was about to extend her policy . In Islamic insurance , mudaraba rights remain payable to the participant even though he did not renew the policy . Accordingly , NCD and the results can be applied as well in Islamic insurance , but not for conventional insurance .Because the coverage period for insurance products ( eg fire insurance , motor vehicle , personal accident , etc. ) are usually valid for a period of one year, then this product does not contain a savings element ( non- saving) so that the entire premium collected will be incorporated into one pool / fund for later managed by the company based on Islamic principles . Of the total funds plus investment returns and reduced insurance expenses ( commission agents , reinsurance premiums , claims , etc. ) , then if there is surplus then the surplus will are shared between the participants and the company with the ratio specified in the initial agreement .