INSURANCE-PEDIA.COM | Understanding of Sharia Insurance According to Janwari (2005: 5), defining Takaful insurance is:
“Insurance whose operational principle is based on shari’ah of Islam with reference to Al-Quran and Al-Sunnah.”
This general understanding, not much different from the conventional insurance sense. Both are in the context of an insurance company that only serves as a facilitator or mediator of functional relationships between premium depositors (insurers) with the recipient of the claim payer (the insured).
Characteristics of Sharia Insurance
As an insurance that is founded on Islamic principles and values, Sharia insurance has certain characteristics. These characteristics include: (Janwari: 2005: 21)
- The contract is a takafuli contract.
- In addition to savings participants are also made savings donation (tabaru ‘).
- Realize the principle of profit sharing
The purpose of Sharia Insurance
Minimizing financial risk in Takaful insurance can come from two sources, namely savings (premiums) paid up, and tabarru ‘from other insurance participants. Judging from the ways to minimize risk, the purpose of establishment of sharia insurance, especially in Indonesia is: (Janwari: 2005: 13)
- Growing the ability of Muslims in the field of management of the insurance industry, implies that the presence of Takaful insurance is expected to become an opportunity for Indonesian Muslims to involve themselves directly to manage and develop the insurance industry apart from elements that are not justified syara’.
- Maintain consistency in the implementation of Islamic Insurance in the field of finance, contains the understanding that Takaful Insurance is a form of implementation of the values of sharia contained in Al-Quran and Al-Sunnah.
- To increase the nation’s prosperity in terms of awareness of the importance of insurance, especially the Muslim community.
- Anticipation of the increasing prosperity of the nation, implies that in a developed nation society, individualistic character is more prominent than the collective character.