Concept, Legal Basis and Regulation of Islamic Insurance DEFINITION OF ISLAMIC INSURANCE. In Arabic, at-ta’min (amana): to provide protection, tranquility, security, and freedom from fear. QS. Quraish (106):4, namely “It is Allah who secures from fear.” . Encyclopedia of Islamic Law, at-takaful al-ijtima’i or solidarity which is defined as the attitude of members of the Islamic community who think about, pay attention to each other, and help overcome difficulties; One member of the Islamic community feels the suffering of the other as his own suffering and his luck is also the fortune of others. DSN Fatwa No. 21/DSN-MUI/X/2001: Sharia Insurance (ta’min, takaful or tadhamun) is an effort to protect and help each other among a number of people/parties through investment in the form of assets and/or tabarru that provides a pattern returns to face certain risks through a contract (commitment) that is in accordance with sharia. For that we really need insurance, you can check this link buy insurance policy for total permanent disability malaysia to find out more information about insurance.
Islamic insurance according to experts:
· Mustafa Ahmad az-Zarqa, a way to protect humans in avoiding the risks (threats) of various dangers that will occur in their lives, in the course of their life activities or in their economic activities.
· Moh. Ma’sum Billah, “mutual guarantee provided by a group of people living in the same society against a defined risk or catastrophe befalling one’s life, property or any form of valuable things”.
· Muhammad Syakir Sula, taking risks among others, so that one with the other is the bearer of the other’s risk.
· Wahbah az-Zuhaili distinguishes two types of insurance: a. b. “The agreement of a lot of people to pay a specific amount of money as compensation when one of them gets into problems” is what at-ta’min at-ta’awuni (insurance to aid) refers to. At-ta’min bi qist sickle (insurance with fixed distribution): “a contract that entails a person paying a specific sum of money to the insurance firm made up of several shareholders with the understanding that if the insurance participant suffers an accident, he is compensated.”
Islamic insurance and traditional insurance contrasted No Conventional Insurance Principles Religious Insurance 1 The idea of a contract between two or more parties where the insurer commits to paying the insured’s compensation in exchange for collecting insurance premiums. a collection of individuals who support one another, provide guarantees for one another, and collaborate by each issuing tabarru’ cash. 2 The Hammurabi pact, which dates back to 4000–3000 BC, is the foundation of Babylonian society. As the precursor of modern insurance, Lloyd of London was established in 1668. Then it was approved by the Prophet to become Islamic law, and it was even spelled down in the world’s first constitution, the Constitution of Madina, which was created by the Prophet himself. 3 legal resources derived from the culture and intellect of people. Based on natural law, positive law, and precedents derived from divine revelation. The Qur’an, the Sunnah or the customs of the apostles, ijma’, friend-issued fatwas, qiyas, istihsan, urf traditions, and masalih mursalah are the sources of law according to Islamic sharia.