Car Insurance in Islam Halal or Haram? Read This!

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Hi all readers! Are you looking for an explanation about “car insurance in Islam halal or haram?”? If your answer is “Yes”, congratulations! Now you are reading the right article. Why? Because that is what I will explain in this article. As Muslims, we must understand that. That’s why I wrote this article. So, you should read it to the end!

Specifically, there are four important things about “car insurance in Islam halal or haram?” which I will explain in this article. The four important things I mean are as follows:

  1. Meaning of Car Insurance in Islam.
  2. Principles of Car Insurance in Islam.
  3. Car Insurance in Islam Halal or Haram?
  4. Misunderstanding About Car Insurance in Islam.

Meaning of Car Insurance in Islam

The first important thing about “car insurance in Islam halal or haram?” what I will explain now is the meaning of car insurance in Islam. I want you to understand that first before you read more explanations in this article because that is one of the important things in this discussion that must be well understood.

In general, car insurance in Islam is one type of insurance in Islam that is used for protection against the impact of financial losses or loss of income for a person or family due to car damage.

In simple terms, car insurance is a type of insurance that aims to cover the unexpected loss of a person or family due to car damage.

There is a difference between car insurance in Islam and conventional car insurance. The difference I mean is the basic concept and way of managing funds. The basic concepts of car insurance in Islam and the management of car insurance funds in Islam are in accordance with Islamic principles. So, Islamic principles or Islamic rules become the main standard of car insurance in Islam.

Other differences between Islamic car insurance and conventional car insurance are contracts, ownership of funds, underwriting surplus, investment management and insurance supervision. In car insurance in Islam, there are several types of transactions that should not be done. The types of transactions I mean are gharar or uncertainty, usury or extra and maysir or gambling. So, customer funds on car insurance in Islam, especially unit links, will not be invested in things that are contrary to Islam.

That is a brief explanation of the meaning of car insurance in Islam. As Muslims, we must understand that.

Principles of Car Insurance in Islam

The second important thing about “car insurance in Islam halal or haram?” what I will explain now is the principles of car insurance in Islam. I want you to understand all of this because it is one of the most important discussions about “car insurance in Islam” that some Muslims don’t understand very well.

In general, if we read some Islamic literacy about car insurance in Islam, we will get an explanation that the main principle of car insurance in Islam is Islam. The point is that all activities carried out, such as the management of car insurance funds, must be in accordance with Islamic principles.

Specifically, the principles of car insurance in Islam are as follows:

1. The principle of tauhid in car insurance in Islam.

The first principle of car insurance in Islam is tauhid. The point is that car insurance in Islam does not only aim to get financial benefits, but also other benefits according to Islamic teachings.

2. The principle of justice in car insurance in Islam.

The second principle of car insurance in Islam is justice. The point is that the management of car insurance funds in Islam is carried out fairly, not benefiting one party and harming the other party.

3. The principle of mutual assistance in car insurance in Islam.

The third principle of car insurance in Islam is mutual assistance. The point is that the purpose of car insurance in Islam is mutual help.

4. The principle of cooperation in car insurance in Islam.

The fourth principle of car insurance in Islam is cooperation. The point is that each party must carry out their respective obligations according to the agreement. So, there is no party that does not fulfill its obligations.

5. The principle of trusting in car insurance in Islam.

The fifth principle of car insurance in Islam is trust. The point is that each party trusts the other party to carry out their respective obligations. For example, insurance owners trust insurance companies to manage car insurance funds according to Islamic principles.

6. The principle of volunteering in car insurance in Islam.

The sixth principle of car insurance in Islam is voluntary. The point is that neither party is forcing the other party. So, the owner of the car insurance may not force the car insurance company, and the insurance company must not force the owner of the insurance. Everything must be on a voluntary basis.

7. The principle of managing car insurance funds according to Islamic rules.

The seventh principle of car insurance in Islam is to manage car insurance funds according to Islamic rules. All funds must be managed according to Islamic teachings.

That is a brief explanation of the principles of car insurance in Islam. As Muslims, we must understand that.

Read Also:

Concept of Takaful (Islamic Insurance)

Car Insurance in Islam Halal or Haram?

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Founder, Author, Indonesian Blogger, Muslim, Graduate of Al-Azhar University, Cairo, Egypt.

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