INSURANCE

Sharia is very different to conventional insurance, as is done in conventional insurance practices underway in Islam, including: 1. Uncertainty (gharar) on the rights of policyholders (participants) and the source of funds used to cover claims from the participants. 2. Gambling (maysir) is possible because there are parties who benefit from the losses of others. 3. Aba is the income earned from interest-mem-going investment funds provided. Sharia (Takaful), known in the mutual bear the risk among people, so with one another to be in charge of the risk the other. All this is done on the basis of mutual help in the goodness of each issue of funds / donations / charity (tabarru '), which agreed to bear the risk value is. In accordance with the word of Allah SWT "And please, you menolonglah in (the) good and piety, and not mutual menolonglah you in sin and abuse" (QS Al-Maidah [5]: 2) There are seven principles that distinguish sharia with conventional insurance, namely: 1. The existence of Sharia Supervisory Board (DPS), who oversees the products, and products marketed in the management of investment funds. DPS found in the sharia but not in the conventional insurance. 2. The contract will be implemented. Scholars who conducted based on sharia principles of mutual help (Takaful), whereas in conventional insurance based on the sale and purchase contract (tadabbuli). 3. Principles calculation of investment funds. In the sharia, the basic calculation of investment funds based on the principles for the results (mudharabah). In conventional insurance, the basic calculation of investment funds based on usury. 4. Ownership of the funds. In the sharia investment funds accrued from the participants (premium) is fully owned by the participants while the insurance company is only as a trustee or fund manager (mudharib). In conventional insurance, investment funds are collected from the participants (premium) to be owned by the company, so the company free use of determining the allocation of investment funds. 5. Payment of claims. Payment of claims made by the sharia is taken from the account tabarru '(welfare funds) all the participants. Since the initial save investment funds, participants are asked keikhlasannya that there will be elimination of funds will be used to help the other if subjected. Meanwhile, the insurance payment claims convensional taken from funds owned by the company. 6. The advantages of insurance companies. In the sharia, the profits obtained by companies from the investment fund participants will be divided between the companies with participants in accordance with the principles for the results, with a proportion that has been agreed at the beginning. Meanwhile, in the conventional insurance benefits obtained by the company to become fully owned by the company. 7. Chance of funds that charred. In the sharia does not recognize the existence of funds that although the charred state insurance participants will resign because of something and other things. Funds that have been disetorkan still can be taken unless the funds since the beginning has been diikhlaskan into account tabarru '(welfare fund). Meanwhile, in the conventional insurance funds known of the charred if participants can not continue the payment of premium and want to resign before the maturity period (reserving period).