Showing posts with label Sharia Insurance. Show all posts
Showing posts with label Sharia Insurance. Show all posts

Insurance Company In Islamic Law

11:28 AM  , , ,  No comments

Insurance Company In Islamic Law

Lately, many emerging companies ies insurance and each claim to have a fatwa that allows insurance. Most of the company reveals, that the money you pay for car insurance you will be returned to you just by selling it. How the practice of law? For us to better understand and practice this problem, let us invite our hearts to be put God and His Messenger. So we get the benefits and avoid cases that could plunge us on the precipice contempt and sadness. This is the Standing Committee Ad-Daimah Buhut Lil Al-Ifta Wal Ilmiyah quoted from the Book of Al-Fatawa Al ash-Fi Syar'iyyah Masa'il Ashriyyah Min Fataawa Al-Ulama Al-Balad Al-Haram.



There are two kinds of insurance. Kibaril Hai'ah Majlis Ulama have to study it since a few years ago and has issued a decision. But some people just glance section without regard to the permissibility of the illegitimate, or use a license to practice may be unlawful so that the problem becomes unclear for some people.

Cooperative insurance (social security) is allowed, such as; group of people paying a certain amount of money for sadaqah or build a mosque or help the needy. Many people who take this term and make it a reason for commercial insurance. It's their mistake and deception against humans.

Examples of commercial insurance: A person insuring the car or any other item that is imported at a cost of goods so and so. Sometimes does not happen so the money you have paid the insurance company it was taken for granted. This includes gambling included in the word of Allah Ta'ala, which means: "Surely (drinking) alcohol or gambling, (sacrificing to) idols, gambled the fate arrows are abominations including acts of Satan" [Al-Maidah: 90]

In conclusion, that the insurance cooperative (co-insurance / social security) is a certain amount of money collected and donated by a group of people for the benefit shar'ie, such as; help the needy, the orphans, the construction of mosques and other goodness.

Here we attach to the manuscript reader fatwa the Standing Committee Ad-Daimah Buhut Lil Al-Ifta wal Ilmiyah (Permanent Committee for Research and Fatwa Ilmiyah) of the insurance cooperative (co-insurance).

Praise be to Allah, the Lord of the Worlds. Prayers and peace and greetings be upon our Prophet Muhammad, his family and friends, amma ba'du.

Has issued a decision on Ha'iah Kibaril Ulama haramnya commercial insurance with all kinds because it contains madharat and great danger as well as a follow-consuming property of others by means of the acquisition of the vanity, which it had been forbidden by the sacred law and is strictly prohibited.

Other than that, Hai'ah Kibaril Ulema also issued a decision on bail is proper cooperation (cooperative insurance), which consists of donations donors with the intention of helping those who need it and not go back to members (donors), the principal amount is not nor profits, because the members are expected Allaah reward by helping those who need help, and do not expect reciprocity mundane. It is covered by the word of Allaah: which means: "And please menolonglah you in (doing) virtue and piety, and do not be helping in sin and transgression" [al-Ma'idah: 2]

And the words of the Prophet sallallaahu 'alaihi wa sallam, which means: "And God will help the servant for the servant helps his brother" [Hadith Muslim history, the book adh-Dhikr wad wat Du'at Tauba 2699]

It is quite clear and there is no vague.



But lately some companies disguise to people and turned the essence, which they named the unlawful commercial insurance as social security is attributed to the fatwa which allowed of Ha'iah Kibaril Ulama. This is to deceive others and promote their company. Though Ha'iah Kibaril Cleric altogether regardless of the practice, because the decision was clearly distinguish between commercial insurance and social insurance (assistance). Changing the name itself does not change substantially.

This statement is issued in order to provide an explanation to the people and dismantle the disguise and unveil the lies and pretense. Prayers and peace may always be transferred to our Prophet Muhammad, to the whole family and friends.

[Al-Bayan Min Standing Committee Ad-Daimah Buhuts Lil Al-Ifta wal Ilmiyah Haula At-At-tijari ta'min wat ta'min At-Ta'awuni]


Related Articles:
Read More

Differences of Shariah and Conventional Insurance

9:28 PM  ,  No comments

Differences of Shariah and Conventional Insurance

http://insurance-quote-s.blogspot.com/
 There are seven fundamental differences between Islamic insurance with conventional insurance.
The differences are:
  1. Shariah insurance has a Sharia Supervisory Board (SSB), a product marketed betugas oversee and manage investment funds. Sharia Supervisory Board is not found in conventional insurance.
  2. Transactions are conducted in accordance with Shariah insurance please help. While based on the sale and purchase of conventional insurance
  3. Investment funds based on Shariah insurance profit sharing (mudaraba). While in conventional insurance to use the interest (usury) as the basis for the calculation of investment
  4. Ownership of an insurance fund in the shari'ah is the right candidate. Company only as a fiduciary to manage them. In conventional insurance, funds collected from customers (premium) become the property of the company. Thus, companies are free to choose their investment allocation.
  5. In the mechanism, does not recognize Shariah insurance funds such as those found in the charred conventional insurance. If the contract term participant is unable to continue premium payments and wanted to resign before the reversing period, the funds being entered can be retrieved, except for some small funds that have been intended to tabarru '.
  6. Shariah insurance claim payment in funds drawn from tabarru '(benevolence funds) all participants who have given willingly from the beginning that there is provision for funds to be used as helping fund among the participants in case of disaster. While in conventional insurance claim payment was taken from the account of company funds.
  7. Distribution of profit on Shariah insurance is divided between the company and participants in accordance with the proportion of revenue sharing principles that have been determined. While in conventional insurance all profits belong to the company.

Related Articles:
Read More

The Essence of Islamic Insurance

9:25 PM  ,  No comments

The Essence of Islamic Insurance

http://insurance-quote-s.blogspot.com/
For every true Muslim to live and die only for the Creator Allah alone. In determining contained Consequently, every Muslim must live the teachings of Islam not only in mosques, when praying, fasting, zakat and hajj, but also when he was in the market, banks and offices. When he was transacting, to invest in the capital market, as well as insurance.

The same spirit that should inspire the rise of Islamic life in the world economy. In Indonesia, because the interest-free banking system introduced by Law No. 7/1992 on Banking, which is reinforced by the recognition of the dual banking system, Islamic banking is growing rapidly in the last three years. This data shows the share of total banking assets increased from 0.11 percent in 1999 to 0.33 percent in 2001. Third party funds, rose from 0.07 percent to 0.3 percent over the same period, and the offices are also increasingly growing to reach 29 cities in Java, Sumatra, Sulawesi and Kalimantan.

In the insurance sector, a similar development occurred. Currently, insurance companies are operating really fully sharia there are three, namely General Islamic Insurance, Family Islamic Insurance (life), and Mubarakah. In addition, some conventional insurance companies have opened sharia divisions namely MAA, Great Eastern, Bumiputera (life insurance), and Tripakarta. Ministry of Finance data showed, Islamic insurance market share in 2001 was only 0.3 percent of total national insurance premiums. Future developments expected to be more generally given the conditions the propagation of Islam is increasingly broad in scope, thus increasing public awareness. In addition, some government policies that support the development of Islamic insurance is an insurance determination Hajj is managed by Islamic insurance companies. In the field of the rule of law, currently in Indonesia has formed a special rule regarding Islamic Insurance is expected to make a significant impact as a result of the Banking Act 1998.

Islamic Insurance is a part of life based on the principle of monotheism. Everyone realized that it really did not have any power themselves when disaster comes from Allah, whether it was an accident, death, or the burning of shops that we have.

There are various ways of how people deal with disaster risk. The first way is to bear its own (retention risk), secondly, the risk of transfer to the (risk transfer) to another, and (shared risk) third, jointly managed.

It is interesting to ponder that since the beginning of its existence, the mechanism of Islamic Insurance is always associated with the group. This means that a disaster is not a matter of individuals, but groups. Even if, for example, an accident happened only a specific individual (specific risk). Moreover, if the crash was linked to the wider community (fundamental risk) such as earthquakes and floods. Allah has confirmed this in a few words in the Qur'an, among others, in a letter al again, paragraph 2, and Al Baqarah verse 177. Likewise, God's promise to always "provide food and rescue of fear" (QS Quraishi: 4) we often feel the hand of others were moved by the Lord to help us to fulfill these promises. There also are many hadith that the Prophet ordered the Muslims to protect each other in the face of adversity.

Based on the verses of the Qur'an and the hadith above, the actual accident, or risk disaster losses, should be shared (sharing of risk). So, instead of each individual bear (retention risk) alone, or diverted to the (risk transfer) to another. This is the essence of risk sharing in Islamic insurance, in which applied the principles of cooperation, mutual protection and responsible (Cooperation, protection, shared responsibility), which can be abbreviated with the principle of the CPM.

Clearly different from what happens in conventional insurance. There is a risk transfer occurs. You pay a premium to transfer risk that you can not carry insurance companies. Here are selling ', with commodities is the risk of loss, which has not happened. This is where the 'defects' of conventional insurance agreement, if seen from the perspective of Islam. Islam requires a theory of contract in the commodity (contract object) is sure, whether it be in the form of goods and services. This flaw is compounded by the condition that the premiums would sink if the loss does not occur, the opposite will reach many times when it is paid as compensation in case of risks insured.

Indeed, the insured will not get any benefit out of here because the principle of indemnity insurance has been arranged that no compensation can be given more than the amount of the loss suffered. However, this risk transfer mechanism allows for the imbalance of power in running the insurance agreement as agreed. At the simplest level, for example, when the insurer requires the insured to do their best to prevent the loss of, among others, to conduct rigorous risk management, on the other hand do not need to do that because the insured has transferred the risk to the insurance company. In a more complex level, could be frauds in filing a claim, either in the form of false claims (claims fraud) and the submission of the value of the claim is higher than it actually is.

In a risk sharing recommended in Islam, as a possible moral hazard in conventional insurance. God willing it will not happen because each individual right to insurance for all participants. Funds collected (pool funds) are not only used to sympathize participants who suffered losses, will also be invested (of course in accordance with the rules of Islamic investment), and the results will be distributed back to the participants in accordance with the principles of mudaraba.

The result will be negative if risk is not managed properly collected, so the number of large claims. As a result, participants lost an opportunity to get a result. This mechanism in itself encourages each participant to make risk prevention and risk management of each well. Any claim of fraud is unlikely to occur. Not only because there is a moral and ethical dimension inherent in it, but also because of its own risk sharing mechanisms related to the principle of mudaraba, making people aware prevented bad things.

Related Articles:
Read More

Subscribe to: Posts (Atom)