Participate Sharia Insurance, What the rulings?

Law to follow the insurance is fine, no problem, as long as we follow the appropriate insurance with Islamic Shariah. Even if you look at history, the discussion about insurance long-standing. For example, Ibn Abidin, a fuqoha sect Hanafi (1784 - 1836 AD), has conducted studies on definitions, concepts, and patterns of insurance transactions in accordance with Islamic Shari'a.

In general, there are some fundamental differences between sharia insurance, and conventional. The difference can be seen from the agreement, the principles of halal or haram, and the structure of insurance companies.

First, in terms of the contract. Participants sharia insurance policy, the funds entrusted to the company, usually using a two contract. Namely, tabarru'(virtue) and mudaraba. In agreement tabarru', the sharia insurance policyholders are agreed to set aside part of the funds deposited for the common good. In principle, one with the other cover one another's burdens. This is called takaful. Funds collected in the account tabarru 'is usually used to pay insurance claims of the unfortunate participants.

The second contract is mudaraba, where participants insurance, act as rabbul Maal (owner funds) and the company as mudarib (fund manager). There is a profit-sharing ratio agreed by both parties. The size of an acceptable return policy holders are very dependent on the success of the investment made by the company.

This is different to conventional insurance, where the funds raised through insurance premiums paid by participants will be wholly-owned company. Companies are free to use and invest these funds in accordance with her wishes.

Interestingly, the term "sunk funds" is not recognized in sharia insurance. If the policyholder had resigned, he is entitled to withdraw the remaining funds, except for some funds that have become part of tabarru '. Unlike conventional insurance, which applies the principle of sunk funds if the participant resigns insurance.

The second difference located in the screening halal haram. sharia insurance company would not be likely to engage in businesses that were contrary to the provisions of sharia. While in conventional insurance, the issue of halal haram is not too get attention. What is overlooked is purely a business advantage.

Third, the structure of sharia insurance companies, there is a sharia supervisory board (SSB). SSB is tasked to supervise and ensure conformity between practice and insurance products with Islamic law. Unlike conventional insurance that do not have the SSB at all.