Some people still have different opinions about insurance law in Islam. Even though currently there is sharia insurance which is run based on Islamic principles and is supervised by the Sharia Council. However, the question of how insurance law according to Islam continues to arise. Then, what is the difference between conventional insurance and Islamic insurance? Here’s a little summary.
The principle of insurance in general intends to provide protection or protection against the risk of financial loss in the future. For this reason, insurance companies provide conditions for customers to pay premiums. Then the funds are managed so that the profits can later cover the losses that are expected to arise.
In the view of Islam, insurance is not seen as a sale and purchase that is lawful. Insurance clearly has no form. So that insurance is often considered to contain usury which is forbidden in Islam. However, another opinion states that insurance has the benefit of protecting each other and helping each other among human beings. Which could have an unexpected disaster. That is why some scholars argue that insurance that is run based on Islamic teachings is permissible.
MUI Fatwa on Insurance
In the fatwa of the National Sharia Council of the Indonesian Ulema Council (DSN MUI) 21/DSN-MUI/X/2001 concerning General Guidelines for Sharia Insurance, it is stipulated that:
Sharia Insurance (Ta’min, Takaful or Tadhamun) is an effort to protect and help each other between a number of people/parties through investments in the form of assets and/or tabarru ‘that provide a pattern of return to face certain risks through appropriate agreements (alliances). with sharia.
So, sharia insurance companies that manage customer funds must be based on sharia principles, must not contain gambling ( maysir ), uncertainty ( gharar ), usury, and goods that contain immorality in it, especially illicit goods.
Legal Basis of Sharia Insurance in Indonesia
In Indonesia, the implementation of insurance is regulated in laws issued by legitimate government agencies.
The law is the legal umbrella and the basis for the operation of a number of insurance companies in Indonesia. Not only laws, but also government regulations, ministerial decisions, Bapepam regulations, OJK regulations, OJK Circulars, and sharia insurance regulations.
One of these rules is contained in Law No. 40 of 2014 concerning Insurance.
Not to mention a number of other regulations, such as POJK Number 69/POJK.05/2016 concerning Business Conduct of Insurance Companies, Sharia Insurance Companies, Reinsurance Companies, and Sharia Reinsurance Companies.
Likewise with the legal basis based on ministerial decree number 424/KMK.06/2003 concerning the Financial Health of Insurance Companies and Reinsurance Companies.
From the several legal grounds that have been mentioned, it means that the state is present to supervise the Islamic insurance industry in Indonesia.
Insurance Permitted in Islam
The agreement in sharia insurance has followed a grant contract with the concept of helping without expecting anything in return. Very different from the concept of conventional insurance that both expect profits.
Likewise, the management of funds in sharia insurance must be transparent and only invested based on the principles and foundations of Islamic teachings. The benefits of managing these funds are subject to zakat so that they provide more benefits for those in need.
Sharia insurance remains under the auspices of a legitimate state financial institution such as the Financial Services Authority. However, there is additional supervision from the Sharia Supervisory Board for insurance companies that run sharia-based insurance.
Thus, the management of funds and the working principles of sharia insurance can be accounted for both to the people and to the Indonesian Ulema Council which is the guide for Muslims in Indonesia.
Indonesia as the largest market has the most adherents of Islam in the world. That is why the scholars do various studies as a form of ijtihad in determining which is best for the people.
In principle, the MUI fatwa on insurance can be used as the basis for answering the question of whether insurance is haram, including usury, or is otherwise allowed as long as it is based on Islamic teachings.
There are different opinions of scholars about insurance. However, MUI as one of the institutions where Muslim scholars and scholars gather in Indonesia can be used as the basis for providing guidelines on insurance law according to Islam.
Therefore, Muslims now do not need to hesitate anymore related to muamalah in this case helping each other through insurance products based on Islamic religious law.
As long as the insurance is carried out based on the principles and requirements of sharia, then the law is halal in accordance with what is fatwa by the scholars of MUI.