Many of us have heard of Sharia insurance, but do not know it. We tend to pay attention to products that are more often offered, such as health and life insurance. In fact, they are still part of the insurance.
In general, it offers guarantees for us in the face of unpredictable future risks. You need protection in the form of financially and physically because the body and ourselves are the most valuable.
Many people are unprepared when faced with problems. Therefore, not a few who registered and joined in order to get protection from the authorities. Maybe you are right now too.
Trying to get security and health protection is very important for families, children and grandchildren. However, would it be better if we can help others through this model?
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What is Sharia Insurance?
Sharia insurance is a type or investment product based on Islamic law. Based on the fatwa issued by the MUI, it is defined as tabarru, namely investment in the form of assets aimed at sharing and helping others.
The use of the word ‘Sharia’ is interpreted as the relationship between God and humans and humans with each other. This context is the background why it is called so. In principle, this product emphasizes the good relationship between created beings.
The goal is no longer to transfer risk, namely to transfer risk to the companies, such as those in life or health. But Sharia insurance emphasizes the focus on helping and mutual cooperation.
Simply put, please help in other words also referred to as takaful or ta’awun trying to provide a sense of security between participants. Protection is based on a sense of kinship, the same taste, and concern between religious communities and even between humans.
The concept of sharing risk that was initiated in it also limits its use. The use of this type of investment can only be used for underwriting surplus, benefits (risk claims), and reinsurance payments.
Therefore, the basic concepts also affect the management of the money you put in the investment company. You should know that the use of your investment money is mutual, which is also part of worship.
Fund Management and Claim Resource
By understanding the context of Sharia insurance, you also need to understand how the funds are managed. Generally, insurance companies and customers respond to each other in profit and loss.
You must know that the use of funds by the company is not allowed for business activities that are contrary to Islamic law. Thus, activities such as gambling, production, and distribution of goods do not fall into the appropriate category.
Therefore, all funds managed are intended for mutual benefit which is in line with the inspired principles. Transparency is also emphasized in this type, so that there is a sharing of investment returns, known as underwriting surplus.
This underwriting surplus is the profit difference from the calculation of risk which has been deducted by the benefits of each policyholder and reserve funds. Later, the profits from Sharia insurance investments will be shared collectively.
Islamic law is the main basis in carrying out this practice. Through Sharia insurance, participants have carried out one of their worships while still benefiting.