The difference with the conventional Islamic insurance

Islamic Banking Insurance

Islamic Insurance is a system where the participants / members / participants donate / granting part or all of the contributions that will be used to pay the claim, if the case of natural disasters experienced by some participants / members / participants. The role here was limited to companies managing the insurance operations and investments of dana-dana/kontribusi received / delegated to the company.

Shariah insurance referred to as a means insurance ta'awun please help or mutual help. Therefore we can say that insurance is essentially ta'awun basic principles of the Shari'a are mutually tolerant of fellow human beings to build togetherness in disaster relief experienced by the participants.

The difference with the conventional Islamic insurance

There are seven fundamental difference between Islamic insurance with conventional insurance.

The differences are:

1. Shariah insurance has a Shariah Supervisory Board (SSB) which oversee betugas marketed products and the management of investment funds. Shariah Supervisory Board is not found in conventional insurance.
2. Akad conducted based on Shariah insurance please help. Whereas conventional insurance based on selling
3. Investment funds based on Shariah insurance for the results (mudaraba). While in conventional insurance using interest (usury) as the basis for the calculation of investment
4. Ownership of funds in Shariah insurance is the right participants. Company only as a holder of trust to manage it. In the conventional insurance, funds collected from customers (premium) to be owned by the company. Thus, companies are free to choose their investment allocation.
5. In the mechanism, the insurance does not recognize Shariah as the funds have sunk to the conventional insurance. If the participants during the contract can not continue to pay premiums and want to resign before the reversing period, which included the funds can be taken back, except for some small funds that had been intended to tabarru '.
6. Payment of insurance claims taken from the fund Shariah tabarru '(benevolence funds) all participants who had early stage that there diikhlaskan funds will be used as helping fund among participants case of natural disasters. While in conventional insurance claim payment to be taken from company funds accounts.
7. Profit sharing in Shariah insurance is divided between the participating companies in accordance with the principle of proportion to the results that have been determined. While in conventional insurance all profits belong to the company.