Sharia Insurance: Advantages of Sharia Insurance
Sharia Insurance is insurance based on sharia principles with help-to-help efforts (ta'awuni) and mutual protection (takafuli) among Participants through the formation of a pool of funds (Tabarru 'Fund) which is managed according to sharia principles to face certain risks. Here are some definitions in Islamic insurance as follows: A contract is a written agreement that contains certain agreements, including the rights and obligations of the parties in accordance with sharia principles. Akad Tabarru 'is a grant agreement in the form of granting funds from one Participant to the Tabarru Fund' for the purpose of help between the Participants, which is not for commercial purposes. Akad Wakalah bil Ujrah is a Tijarah Contract which authorizes the Company as a Participant's representative to manage the Tabarru 'Fund and / or Participant Investment Fund, according to the power or authority given, in return for a ujrah (fee). Mudharabah Agreement is a contract to provid...