Islamic Insurance in Canada

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“Disclaimer: this article will explain some important things about Islamic insurance for people in Canada, especially Muslims in Canada. This article does not specifically discuss Islamic insurance companies in Canada.

Hi all readers! Are you looking for an explanation of Islamic insurance in Canada? 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!

One important thing I want to explain is that the discussion about Islamic insurance in Canada in this article does not specifically discuss Islamic insurance companies in Canada. In this article I will only explain some basic things about Islamic insurance in Canada according to sharia principles or Islamic rules.

Specifically, there are three important things about Islamic insurance in Canada which I will explain in this article. The three important things I mean are as follows:

  1. What Is Islamic Insurance in Canada?
  2. Is There Islamic Insurance in Canada?
  3. Seven Criteria of Islamic Insurance in Canada.

What Is Islamic Insurance in Canada?

The important thing about Islamic insurance in Canada that I will explain now is “what is Islamic insurance in Canada?”. I want you to understand that first because it is one of the basic things that must be well understood.

There are two important things we must understand first:

One: Islamic insurance.

If we read some Islamic literacy about Islamic insurance, we will find an explanation that Islamic insurance is an effort to protect and help each other among a number of people. This is done through investments that provide returns to meet certain risks through sharia-compliant agreements.

In Islamic insurance there is a system. All Islamic insurance participants will contribute if there are other participants who experience losses. In other words, the role of Islamic insurance companies is only to take care of operational and investment matters from a number of insurance funds.

The purpose of Islamic insurance is the welfare of Muslims, not getting very many benefits like the purpose of conventional insurance.

We can find an explanation that the welfare of Muslims is the main goal of Islamic insurance if we understand the meaning of Islamic insurance and the criteria of Islamic insurance. I will explain the Islamic insurance criteria at the end of this article.

Two: in Canada.

I guess we all know Canada. Canada is a country. I won’t say much about it.

In simple terms, I want to say that what is meant by Islamic insurance in Canada is an insurance or insurance company that uses sharia principles or Islamic rules as the principle of managing insurance companies and insurance funds.

That’s a brief explanation of “what is Islamic insurance in Canada?”. As Muslims, we must understand that.

Is There Islamic Insurance in Canada?

The important thing about Islamic insurance in Canada that I will explain now is “is there Islamic insurance in Canada?”. I want you to understand that because it is one of the important questions for Muslims about insurance in Canada that must be well understood.

In the previous few paragraphs, I have explained that Islamic insurance is insurance that uses sharia principles as insurance principles. Islamic insurance makes sharia principles the principles of managing insurance companies and managing insurance funds.

So, if you want to know whether an insurance company is a Islamic insurance company or a conventional insurance company, you have to understand how they manage the insurance company. If they make sharia principles the principles of managing insurance companies and insurance funds, then the insurance company is a Islamic insurance company. If they do not use sharia principles as the principles for managing insurance companies and insurance funds, then the insurance company is not a Islamic insurance company. That’s the standard.

So, simply, if you ask me, “is there Islamic insurance in Canada?”, the answer is that if in Canada there are insurance companies that make sharia principles or Islamic rules the principles of managing insurance companies and insurance funds, there is Islamic insurance in Canada. If in Canada there is no insurance company that uses sharia principles or Islamic rules as the principle of managing insurance companies and insurance funds, then, there is no Islamic insurance in Canada.

That’s a brief explanation of “is there Islamic insurance in Canada?”. As Muslims, we must understand that.

Read Also:

Concept of Takaful (Islamic Insurance)

Seven Criteria of Islamic Insurance in Canada

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

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