Conventional Insurance And Sharia

Conventional Insurance And Sharia

Life insurance and life insurance conventional sharia has the same goal, namely the management or risk mitigation. The fundamental difference between the two is how conventional management of insurance risk management and transfer of risk from the participants to the insurer (risk transfer), while life insurance adheres to the principles of sharia please help by sharing the risk among participants life insurance (risk sharing).
In addition to differences in the way risk management, there are differences in how to manage the savings element of the insurance product. Fund management in life insurance embrace sharia Islamic investment and free from elements of usury

 
In detail the difference between life insurance and life insurance conventional sharia can be seen in the following description:

1. Contract or Agreement
 The clarity of the contract or agreement in principle into practice muamalah because it will determine the validity of sharia . Similarly, the contract between the participants with an insurance company . Applying conventional insurance contracts in Shariah -called contract of sale ( tabaduli ) .

In this contract must fulfill the terms of the contract of sale . Ketidakjelasaan issue of the amount of premium to be paid because it depends on the age of the participants of which only God knows when we die resulting in the conventional insurance contains what is called gharar - ketidakjelasaan contract resulting contract on the exchange of property in the conventional insurance practice legally flawed
So in life insurance contracts used sharia not purchase agreement contract but please help ( takafuli ) . So life insurance sharia uses what is called a contract tabarru which can be interpreted as a charity or donation . This contract is valid and justified an alternative currency in escaping the practices that are forbidden in conventional insurance .
The purpose of the fund tabarru ' This is giving charity fund with sincere intentions for the purpose assist each other among the Takaful participants if there affected them . Therefore tabarru funds ' deposited in the account specifically, where if there is a risk , given the claim funds from the account fund is tabarru ' which was intended by all participants for the sake of helping .

2. Al - Mudaraba contract
The above explanation , the contract tabarru ' is a grant that is allocated when a disaster occurs . While elements of life insurance can also be a savings . In sharia insurance , savings or investments must meet the sharia .In this case , the pattern of results is characteristic of an investment for which the insurance company is just managing the funds collected from the participants . Technically , al - mudaraba partnership venture is an agreement between two parties where the first party provides a whole ( 100 percent ) of capital , while others become managers .Mudaraba business profits are divided according to the agreement set forth in the contract , while if the loss , borne by owners of capital loss is not due to negligence on the manager . If the loss was caused by fraud or negligence of the manager , then the manager should be responsible for the losses.Disepkati sharing contract in front so that if there is a profit then the division will follow the production sharing contracts . Suppose a contract for the result is 60:40 , in which participants get 60 percent of the profits of insurance companies currently gets 40 percent of profit .In connection with the investment , which is one element in insurance premiums , must satisfy Islamic law which does not recognize what is commonly called riba . All conventional insurance invest funds with interest mechanism .Thus the conventional insurance is hard to avoid usury . While Islamic insurance daolam should save their money to invest in various investments based on Islamic law with al - mudaraba system .

3. Scorched fund
In conventional insurance fund known charred , where participants can not continue to pay the premium and wanted to resign before the maturity date . Similarly, the non - conventional life insurance and savings ( not an element of savings ) or life insurance , if the MSA contract runs out and there is no claim , then the insurance premium paid into a charred or insurance company profits .In the Takaful concept , the mechanism does not recognize funds forfeited . Participants who had entered though for some reason it wants to resign , then the funds or premiums previously paid may be taken back except a small portion that was intended to fund tabarru ' that can not be retrieved .Similarly, the general Islamic insurance , if the contract expires and there is no claim , then the company returns a portion of the premium with the pattern of results , eg 60:40 or 70:30 in accordance with the contract agreement in advance . In this case it is possible that the premium paid at the beginning of the year can be taken back and the number is very dependent on the level of investment in that year .

Basic Concepts Takaful

BASIC CONCEPTS TAKAFUL

Sharia -based insurance began to be worked by a few companies with the establishment of sharia division . With the continued development of Shariah -based products , then we saw the need to introduce a specifically Islamic insurance products .

Before entering the principles and mechanisms of these products , many Muslims who think that insurance is haram . Is it true ? Join the discussion below .

Insurance is Islamic ?

Some people believe that Islam equals insurance against qodlo and Qadr or contrary to fate . Basically Islam recognizes that accidents , misfortune and death is the destiny of God . It can not be denied . It's just that we as human beings are also instructed to make plans for the future. Allah says in surat Al- Hashr : 18
" O ye who believe! Was devoted to God and let every soul consider what has been done for tomorrow ( future ) and devoted to God ye . Actually means Allah knows what you do " .
Obviously, in this paragraph we dipertintahkan to plan what we will do for the future .
In the Qur'an , Surat Yusuf :43 - 49 , God describes examples of human endeavor protection systems face the possibility of forming a bad future . In summary , this verse tells about his dream neighbor Egyptian king questions to the Prophet Joseph . Where the king of Egypt had a dream saw seven fat cows being eaten by seven skinny cows , and he also saw the seven green stalks of grain and seven fruiting red stalk dries unfruitful .
Joseph replied that in this case you planting of seven years and the result is stored partly let . Then after that will come seven years were very difficult , which spend what you save for hard times menghadapapi proficiency level , except a little of what is stored .
It is clear in this verse we are encouraged to try to maintain the continuity of life with the possibility meproteksi poor condition . And the verse above clearly states that berasurnasi not conflict with destiny , even God recommends that efforts be made towards the future planning with sisitem protection known in the insurance mechanism .
So , if the system or insurance protection is justified , the next question is : whether the insurance as we know it ( conventional insurance ) has met the other requirements in the concept in Islamic Muamalat . In conventional insurance mechanism , especially life insurance , there are at least three things that are still forbidden by the scholars , namely : the element of gharar ( obscurity funds ) , the element of gambling ( gambling / gambling ) and riba ( interest ) . These will be described in a detailed exposition of the differences between conventional and Islamic insurance .