Insurance in Islamic Perspective

The definition of insurance is a contract that requires insurance companies (muammin) to give to customers / clients of his (muamman) some property as a consequence of the contract, either took the form of compensation, salary, or compensation of any kind of goods in the event of a disaster or evidence of an accident or hazard, as stated in the contract (transaction), in exchange for money (premiums) are paid regularly and periodically, or in cash from the client / customer (the muamman) to the insurance company (muammin) at the time of his life.

Based on the above definition we can say that insurance is one way of payment of compensation to the party of the unfortunate, with funds drawn from all participants insurance premium contribution.

Some insurance terms are used, among others:

A. The insured, that is you or a legal entity that owns or interest in the property

B. Insurer, in this case the Insurance Company, a party who receives insurance premiums from the insured and bear the risk of loss / misfortune that befell property insured

CONVENTIONAL INSURANCE

A. The characteristics of conventional insurance
There are several traits that have conventional insurance, such as:

1. Asuransii konvensianal contract is an agreement mulzim (agreements must be implemented) for both parties, the insurer and the insured. Both of these obligations is the obligation of the insured menbayar primi-insurance premiums and liability insurer to pay insurance money if the insured event occurs.

2. This insurance contract is an agreement you, Äôawadhah, ie contract in which two people who can take the substitute berakad of what has been given.

3. This insurance contract is an agreement gharar because each of both the insurer and the insured at the time establish a covenant not know the amount he owes and the amount he took.

4. This insurance contract is an agreement idzan (subordination), the stronger side is the insurance company because it was he who determines the terms which are not owned by the insured,


B. Insurance in Islamic Law Perspective
Given this insurance issue has been socialized in Indonesia and is expected to Muslims very much involved in it, then the problem should also be reviewed from the viewpoint of Islam.

Among Muslims there is the assumption that insurance is not Islamic. Persons who commit insurance as well as those who deny God's grace. It is Allah who determines everything-everything and give sustenance to His creatures, as the word of Allah, which means:

"And there is no moving creature on earth but is God who gives sustenance." (Q. S. Hud: 6)

"And who (also) who gives you sustenance from the heavens and the earth? Is no God besides Allah (the other )???" (Q. S. An-Naml: 64)

"And we've made for you keprluan earth-life purposes, and (we also create) beings ye are not giving sustenance to him." (Q. S. Al-Hijr: 20)

From the third verse it is understood that God actually had prepared everything for all His creatures, including humans as a caliph in the earth. God has been preparing raw materials, rather than mature material. Humans still have to cultivate it, look for it and mengikhtiarkannya.

Immerse yourself in this insurance, is one effort to confront the future and old age. However, due to insurance problems are not described explicitly in the texts, then the problem is seen as a problem ijtihadi, the problem may still be debated and certainly difficult to avoid dissent.

There are several views or opinions of insurance in terms of Islamic fiqh. The most prominent difference is divided into three, namely:

I. Insurance is forbidden in all forms, including life insurance

This opinion was expressed by Sayyid Sabiq, Abdullah al-Qalqii (mufti of Jordan), Yusuf Qaradawi and Muhammad al-Muth hunks, Aoi (the mufti of Egypt ").
The reasons they put it is:
- Insurance with gambling
- Insurance-ungur contain uncertain elements.
- Insurance contains elements of usury / renten.
- Asurnsi contain elements of extortion, because the policyholder, if it can not continue to pay premiums, would lose the premium has been paid or reduced.
- Premiums already paid will be played in the practice of usury.
- Insurance, including a sale or exchange of currency is not cash.
- Life and death were subjected to a business man, and just as with destiny ahead of God.

- II. Conventional insurance is allowed

The second opinion was stated by Abd. Wahab Khalaf, Akhmad Mustafa Zarqa (professor of law at the faculty of Islamic sharia, University Äòah Syria), Muhammad Yusuf Musa (Professor of Law at Cairo University, Egypt Isalm), and Abd. Rakhman Isa (author of the book of al-Muamallha wa al-Haditsah Ahkamuha). They reasoned:

- No texts (al-Qur'an, Äòan and Sunnah) which prohibits insurance.
- There is a consensus and the willingness of both parties.
- Mutually beneficial to both parties.
- Insurance can overcome the public interest, because the premiums are collected can be invested for productive projects and development.
- Insurance included mudhrabah contract (for results)
- Insurance included cooperatives (Shirkah Ta, Äòawuniyah).
- Insurance in analogy (qiyaskan) with the pension system as Taspen.

III. Insurance that are social in nature allowed and forbidden commercial

The third opinion is held among others by Muhammad Abdu Zahra (professor of Islamic law at Cairo University).

The third group is the same reason the first group in the commercial insurance (haram) and the same with the second group of reasons, in the social insurance (allowed).

The reason groups who say the insurance is doubtful because there is no firm proof that the unlawful or illegitimate is not insurance.

From the above description can be understood, that the insurance is a growing problem in society today, there is still a question and invite skepticism, so it is difficult to determine, which are closest to the provisions of the law is correct.

If there were another way that can be taken, of course that's a decent road impassable. New alternative road has to offer, is an insurance according to the norms of Islam.

In this state, should adhere to the words of the Prophet Muhammad:

"Leave things which ye doubted (stick) to the things that do not doubt you." (Narrated by Ahmad)


Takaful

A. The basic principles of Takaful

An insurer is allowed by shari'ah, if not deviate from the principles and rules of Islamic Shari'a. Hence, in muamalah must meet the following provisions:

1. Takaful should be built on taawun (cooperation), mutual help, mutual guarantees, no business or profit oriented material alone. Allah says,? And mutual help menolonglah in goodness and faith and do not help each other help in sin and enmity.?

2. Shari'a is not your insurance, Äôawadhoh, but tabarru, Ao or mudhorobah.

3. Donations (tabarru?) Together with a grant (gift), and therefore unlawful withdrawn. If the event occurs, then settled in accordance with Shari'a.

4. Any member who put up the money according to a predetermined amount, must be accompanied with the intention of helping to uphold the principle ukhuwah. Then from the money collected was diambilah some money to help people who are in need.

5. No one's allowed to deposit small amounts of money in order that he rewarded the fold when exposed to a disaster. Will tetepi pilgrims he was given money in exchange for the losses according to permission granted by the pilgrims.

6. If the money that will be developed, then it must be run according to rules of shar? I.


B. The characteristics of shari'ah insurance, Äôah
Takaful has several characteristics, including the following:

1. Insurance contract shari'ah? Ah is both tabarru?, Donations should not be withdrawn. Or if not tabarru?, Then the share paid out would be a savings that will be accepted if the event occurs, or will be taken if the agreement stops in accordance with the agreement, with no less and no more. Or if more then the excess is not usury clappers mudhorobah results.

2. Insurance contract is not a contract mulzim (agreements must be implemented) for both parties. Because party members when contributions are not intended to reward, and if there is a reward, the real benefits are obtained through a license granted by jama? Ah (all participants of insurance or trustee appointed joint).

3. In the insurance shari'ah, Äôah no party is stronger because of all the decisions and rules made under license jama? Ah as in takaful.

4. Akad Takaful net of gharar and usury.

5. Takaful nuanced familial thick.

C. Takaful benefits.

Here are some benefits that can be learned in the use of sharia, namely:

1. The growing sense of brotherhood and a sense of sepenanggungan among members.
2. Implementation of the suggestion that the Muslim Prophet salimg please help.
3. Away from other forms of prohibited Muamalat Shari'a.
4. Generally it can provide protections from the risk of loss suffered by one party.
5. Also improve efficiency, because it does not need to specifically hold a security and supervision to provide protection that takes a lot of energy, time, and cost.
6. Equitable cost, ie enough to pay a certain amount, and does not need to replace / pay for their own losses which amount is not certain and uncertain.
7. For savings, because the amount paid on the insurance will be refunded when events occurred or the cessation of the contract.
8. Loss of Corning closed the power a person or business entity at the time he was unable to function (work).

Comparison between Takaful and conventional insurance.

A. Similarities between conventional insurance and insurance shari'ah, Äôah.
If one looks closely, found points in common between the conventional insurance with sharia, including the following:

1. The second contract of insurance is based keridloan of each party.

2. Both provide security guarantees to its members

3. Both of these insurers have covenants bersifad mustamir (continued)

4. Both run in accordance with the agreement of each party.

B. The difference between conventional insurance and Takaful.

Compared to conventional insurance, Takaful have fundamental differences in some respects.
First, the existence of the Sharia Supervisory Board in Islamic insurance companies is a must. The Council is instrumental in overseeing the management, products and investment policies in order to keep in line with Islamic law. As in conventional insurance, then it does not get perhatian.Kedua, contract principles are takafuli Takaful (mutual assistance). That is the one helping customers to other customers who were experiencing difficulties. While conventional insurance contract is tadabuli (buying and selling between customer and company).

Third, funds collected from customers' insurance companies (premiums) are invested according to sharia sharing system (mudharobah). While in conventional insurance, investments made in any sector fund with a system of interest.

Fourth, the premium collected is treated as a fund's fixed customers. The company only as a fiduciary to manage it. While in conventional insurance, the premium belongs to the company and the company who has full authority to establish funds management policy.

Fifth, for the benefit of claim payment customers, funds taken from accounts tabarru (social funds) all participants who have diikhlaskan for mutual assistance if any participant affected. While in conventional insurance, the claim payment funds taken from accounts held by the company.

Sixth, investment profits divided between the customer as the owner of the funds with the company as manager, with the principle of revenue sharing. While in conventional insurance, the benefits become fully owned by the company. If there is no claim, customers do not get anything.

From the above comparison, it can be concluded that the conventional insurance does not meet the standards shar? I could be a valid object muamalah for Muslims. That's because the number of deviations of the Shari'a in such insurance.

Therefore let the Muslims away from bermuamalah using models that deviate such insurance, and replace it with insurance in the same breath with the principles muamalah described by Islamic law as forms of sharia that we describe in advance.