Insurance in Islamic Law

Definition of insurance is a contract that requires the insurance company (muammin) to give to customers / clients of his (muamman) a fortune as a consequence of the agreement, both the form of compensation, salary or compensation of any kind of goods when terjadibencana or accident or proven a danger as indicated in the contract (transaction), in exchange for money (premium) paid regularly and periodically, or in cash from the client / customer (muamman) to insurance companies (muammin) at the time of his life.

Based on the above definition can be said that insurance is one way of payment of compensation to the party of the unfortunate, to be funded by contributions from all participants insurance premiums.

Some insurance terms are used, among others:

A. Insured, that is you or a legal entity that owns or interest to property

B. Insurers, in this case the Insurance Company, is the party receiving the insurance premium from the insured and bear the risk of losses / the calamities that befall the property insured

CONVENTIONAL INSURANCE

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

* The contract is an agreement asurab the konvensianal mulzim (agreement which must be implemented) for both Balah party, the insurer and the insured. Both obligations are insured menbayar keawajiban primi-insurance premiums and liability insurer to pay insurance money in case of an insured perietiwa.
* This insurance contract is an agreement mu'awadhah, the contract that includes both people who berakad can take place of what has been given.
* This insurance contract is an agreement gharar because each of the two sides insurer and the insured in eaktu establish a covenant not know the number he gave and the amount he was taking.
* This insurance contract is an agreement idz'an (subjugation) is powerful party insurance company because he was the one who determines the terms that are not owned by the insured,

B. Insurance in Islamic Law Perspective view of the insurance problem is already popular in the community in Indonesia and is expected to Muslims very much involved in it, then that problem should also be reviewed from the viewpoint of Islam.

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

"And there is no moving creature on earth mealinkan Allah Who gives sustenance." (Surah Hud: 6)

"... ... And who (also) that gives sustenance to you from the heavens and the earth? Is no God besides Allah (who else)? ... ... "(Surat an-Naml: 64)

"And we have made for you earth-keprluan living purposes, and (we created anyway) creatures that you occasionally not giving sustenance to him." (Surat al-Hijr: 20)

From the third verse can be understood that God really has prepared everything for the purposes of all His creatures, including humans as a Caliph on earth. God has been preparing raw materials, rather than mature material. Man still needs to cultivate it, seek it and mengikhtiarkannya.

Immerse yourself in this insurance, is one effort to deal with the future and old age. However, due to insurance problems are not explicitly described in texts, then the problem is seen as a problem ijtihadi, ie problems that 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 kinds of forms, including life insurance

This opinion was expressed by Sayyid Sabiq, Abdullah al-Qalqii (mufti of Jordan), Yusuf Qaradawi and Muhammad al-Muth'i Grabber (the mufti of Egypt "). The excuses they put forward are:

* Insurance the same as gambling
* Insurance ungur contain uncertain elements.
* Insurance contain elements of usury / renten.
* Asurnsi contain elements of extortion, because the policyholder, if it can not continue to pay premiums, will lose the premium has been paid or less.
* Premium-premiums already paid will be played in the practice of usury.
* Insurance included sale and purchase or exchange of currency is not cash.
* Life and death of human being the object of business, and as well as precede the destiny of God.

II. Conventional insurance is allowed

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

* No texts (the Qur'an 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 (profit sharing)
* Insurance included cooperatives (shirkah Ta'awuniyah).
* Insurance on analogy (qiyaskan) with the pension system as Taspen.

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

The third opinion is adopted, among others, by Mohammad Abdu Zahrah (professor of Islamic law at Cairo University.)

The reason for this third group the same as the first group in the commercial insurance (haram) and the same by reason of the second group, in which are social insurance (allowed).

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

From the above description can be understood, that the insurance problems that develop in society at present, there are those who question and invite skepticism, so it is difficult to determine, which are the closest to the provisions of the law is right.

Had no other way that can be taken, of course that's a reasonable path to follow. New alternative road has to offer, is insurance under the terms of the Islamic religion.

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

"Leave the things you doubt (stick) to use within those things do not doubt you." (Narrated by Ahmad)

Islamic Insurance

A. The basic principles of Islamic insurance

An insurance allowed by syar'i, if not deviate from the principles and rules of Islamic law. For that in muamalah must meet the following provisions:

* Sharia should be built on taawun (cooperation), please help, mutual guarantees, no business or profit oriented material alone. Allah says, "And help one another in goodness and faith menolonglah and not helping each other in sin and enmity."
* Insurance is not mu'awadhoh Shari'a, but tabarru 'or mudhorobah.
* Donations (tabarru ') together with a grant (gift), and therefore unlawful withdrawn. If there is an incident, then settled according to sharia.
* Any member who put up the money according to a predetermined amount, must be accompanied with the intention of helping to establish the principle ukhuwah. Then, from the money collected was diambilah some money to help people who are in need.
* No one's allowed to deposit small amounts of money in order so that he gets rewards that multiply when exposed to a disaster. Will tetepi he was given money as compensation for loss of pilgrims, according to permission granted by the pilgrims.
* If the money that will be developed, it must be run according to rules syar'i.

B. Distinctive Insurance Insurance Islamic Shari'ah has several characteristics, including the following:

* Shariah insurance contract is to be tabarru ', donations given should not be withdrawn. Or if not tabarru ', then the share will be paid in the form of savings that will be accepted whenever events 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.
* This is not a contract of insurance Akad mulzim (agreement which must be implemented) for both parties. Because party members when giving a donation does not aim to get the reward, and if any benefits, actual benefits are obtained through a license granted by jama'ah (all participants or officials designated insurance together).
* In Shariah insurance no stronger party because all the decisions and rules made under license jama'ah as in takaful insurance.
* Akad Shariah insurance net of gharar and usury.
* Islamic Insurance nuanced familial thick.

C. Islamic insurance benefits. Here are some benefits that can be learned in the use of Islamic insurance, namely:

* The growing sense of brotherhood and a sense of shared causes between members.
* Implementation of recommendations for the Muslim Prophet Muhammad salimg please help.
* Far from Muamalat forms of Shari'a are prohibited.
* In general, to provide protection-protection from the risk of losses suffered by one party.
* It also increases efficiency, because it does not need to specifically hold the security and supervision to provide protection that takes a lot of energy, time, and cost.
* Equitable cost, that is enough just to spend a certain amount of cost, and do not need to replace / pay for their own losses whose numbers are not certain and uncertain.
* As a savings, because the amount paid on the insurance will be refunded when events or cessation of the contract.
* Closes Loss of corning power a person or business entity at the time he was not able to function (work).

Comparison between conventional insurance and Islamic insurance.

A. Equality between conventional insurance and insurance Shari'ah. If one looks closely, find points of similarity between the conventional insurance with Islamic insurance, including the following:

* The second contract of insurance is based keridloan of each party.
* Both provide security guarantees for members
* Both this insurance has a contract that bersifad mustamir (continued)
* Both are run in accordance with the agreement of each party.

B. The difference between conventional insurance and Islamic insurance. Compared to conventional insurance, Islamic insurance have fundamental differences in some respects.

* The existence of the Sharia Supervisory Board in Islamic insurance company 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 attention.
* Principles of Islamic insurance contract is takafuli (mutual assistance). That is one customer who help another customer who is experiencing difficulties. While conventional insurance contract is tadabuli (buying and selling between customers and companies).
* Funds collected from customers Islamic insurance companies (premiums) are invested according to Islamic profit sharing system (mudharobah). While in conventional insurance, investments made in any sector fund with interest the system.
* The premium collected is treated as funds belonging to customers' fixed. The company only as a fiduciary to manage it. While in conventional insurance, premiums belong to the company and the company who has full authority to establish the fund management policies.
* For the purposes of claims payment customers, funds taken from account tabarru (social funds) all participants who have diikhlaskan for the purposes of mutual assistance if any participant affected. While in conventional insurance, the claim payment funds were taken from the company's bank account.
* Gain on investment divided between the customer as the owner of the funds with the company as manager, with the principle of profit sharing. While in conventional insurance, fully into the company's profits. If there is no claim, customers do not get anything.

From the comparison above, it can be concluded that the conventional insurance does not meet the standards that can be made the object syar'i muamalah legitimate for Muslims. That's because many distortions existing Shari'a in such insurance.

Therefore let the Muslims away from bermuamalah that 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 Islamic insurance that we describe in advance.

Furthermore, Al-Lajnah Ad-Daa'imah Lil Buhut Al-Ilmiyah Wal Ifta [Permanent Committee for Research and Fatwa Ilmiyah Saudi Arabia] issued a fatwa as follows:

"There are two kinds of insurance. Majlis Ulama Hai'ah Kibaril been studying it since many years ago and has issued a decision. But some people just glance at the course regardless of the permissibility of illicit, or use a license to practice may be unlawful, so the problem becomes obvious for some people.

Cooperation Insurance (social security) are allowed, such as a group of people pay a certain amount of money for charity or building mosques or helping the poor. Many people who take this term and make it an excuse to commercial insurance. It's their mistake and deception of man.

Examples of commercial insurance: A person insuring a car or other goods are goods imported at a cost so and so. Sometimes it does not happen so the money has been paid the insurance company was taken for granted. This includes gambling covered by the word of Allah, the Exalted "Truly (drinking) alcohol, gambling, (sacrificing to) idols, gambled the fate of the arrows, are abominations including deeds devil" [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 sake of syar'i, such as helping the poor, orphans, the construction of mosques and other virtues.

Here we attach to the readers of the manuscript fatwa al-Lajnah Ad-Daa'imah Lil Buhut Al-Ilmiyah wal Ifta (Permanent Committee for Research and Fatwa Ilmiyah) on insurance cooperation (co-insurance).

Praise be to Allah, Lord of the Worlds. Blessings and greetings and salutations may be delegated to our Prophet Muhammad, his family and friends, Amma ba'du.

Has issued a decision from Ha'iah Kibaril Ulama about the prohibition of commercial insurance to all types because they contain large madharat and dangers as well as an act of eating someone else's property by way of acquisition of falsehood, which it has been forbidden by the Shari'a the sacred and strictly forbidden.

Other than that, Hai'ah Kibaril cleric has also issued a decision regarding bolehnya security cooperation (insurance co), which consists of donor contributions for the purpose of helping people in need and did not return to members (the donors), not of principal nor are profits, because of the expected members are rewarded by Allaah to help people who need help, and do not expect reciprocity worldly. It is included in the scope of the word of Allaah "And please menolonglah you in (do) virtue and piety, and not helping in sin and a violation of" [Al-Ma'idah: 2]

And the words of the Prophet sallallaahu 'alaihi wa sallam "And God will help the slaves during the slave helps his brother" [Hadith Muslim history, the book of adh-Dhikr wad wat Du'at Taubah 2699]

It is quite clear and there is nothing vague.

But lately some companies disguise to the people and play the reverse side of nature, which they named the unlawful commercial insurance as social security allows them to be ascribed to a fatwa from the ulema Kibaril Ha'iah. This is to trick the others and promote their companies. In fact Ha'iah Kibaril Ulama completely independent of those practices, because the decision was clearly distinguish between commercial insurance and social insurance (assistance). Changing the name itself does not change substantially.

Description is issued in order to provide an explanation for the people and dismantle the disguise and reveal the lies and pretense. Blessings and greetings may always be delegated to our Prophet Muhammad, to all family and friends.

[Min Al-Bayan Lajnah Ad-Daa'imah Lil Buhuts Al-Ilmiyah wal Ifta Haula At-At-Tijari Ta'min wat Ta'min At-Ta'awuni]. "

Later, Sheikh Abdullah bin Abdurrahman Al-Jibrin argued as follows:

"Conventional insurance should not be based on shari'ah law, their argument is the word" And do not you eat some other sebahagian property among yourselves by false "[Al-Baqarah: 188]

In this case, the company has taken the treasures insurers (policy) with no way of truth, because (usually) one of them pay some money per month with a total that could reach tens of thousands but for an entire year, he was not so require the service but even so, his property was not returned to him.

Conversely also, some of them could be paying a little money, then an accident that cost the firm to him in many times more than the amount of money has been paid for it. That way, she has charged the company's property without a way of truth.

Another thing, the majority of those who have paid insurance (fee) to companies like to acting recklessly (not careful about personal safety), driving a vehicle full of risk and could have had an accident but they quickly say, "Surely the company is strong ( financial), and perhaps be able to pay damages for accidents that happen. " Surely this is dangerous to (the life) of the population because it will be the increasing number of accidents and mortality.

[Al-Lu'lu'ul Makin Min Fataawa Ibn Jibrin, p. 190-191] "

Reference:

1. Al-Quran AL-karim.
2. Al-fiqh al-Islamy wa adillatuhu, DR. Wahbah Azzuhaily.
3. Al-Islam wal manahij al-Islamiyah, Moh. Al Gozali.
4. Asuransi dalam hukum Islam, Dr. Husain Hamid Hisan.
5. Majalah al- buhuts al- Islamiyah, kumpulan ulama-ulama besar pada lembaga riset, Fatwa, dan dakwah.
6. Masail al-fiqhiyah, zakat, pajak, asuransi dan lembaga keuangan, M. Ali Hasan.
7. Halal dan haram, DR. Muhammad Yusuf al-Qordhowi.
8. Riba wa muamalat masrofiyah, DR. Umar bin Abdul Aziz al-Mutrik.
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10. Masail diniyah keputusan musyawarah nasional Alim ulama NU, bandar lampung, 16-20 Rajab/ 25 januari 1992 M, 11.Kitab Al-Fatawa Asy-Syar’iyyah Fi Al-Masa’il Al-Ashriyyah Min Fatawa Ulama Al-Balad Al-Haram, edisi Indonesia Fatwa-Fatwa Terkini, Darul Haq

Source:
http://jacksite.wordpress.com/2007/07/11/hukum-asuransi-menurut-islam/