Sharia Insurance Principles

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Hi all readers! Are you looking for an explanation about sharia insurance principles? 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 several important points about sharia insurance principles which I will explain in this article. Some of the important things I mean are as follows:

A. Meaning of Sharia Insurance.
B. Purpose of Sharia Insurance.
C. Is There Sharia Insurance?
D. Seven Principles of Sharia Insurance.

Meaning of Sharia Insurance

The first important point about sharia insurance principles that I will explain now is the meaning of sharia insurance. I want you to understand that first before you read more explanations in this article because that is the basic discussion in this article that should be well understood.

If we read some Islamic literature on sharia insurance, we will find an explanation that sharia 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 sharia insurance there is a system. All sharia insurance participants will contribute if there are other participants who experience losses. In other words, the role of sharia insurance companies is only to manage operational and investment matters from a number of insurance funds.

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

Purpose of Sharia Insurance

The second important point about sharia insurance principles that I will explain now is the purpose of sharia insurance. I want you to understand that because it is one of the important discussions about sharia insurance that must be understood well. In addition, there are some Muslims who do not understand it well.

If we read some past literatures about sharia insurance, we will find an explanation that the purpose of sharia insurance is the welfare of Muslims, not getting a lot of benefits like the goals of conventional insurance.

We can find an explanation that the welfare of these Muslims as the main goal of sharia insurance if we understand the meaning of sharia insurance and the sharia insurance principles. I highly recommend that you understand the meaning of sharia insurance as I explained earlier. You can also read explanations about it in several other articles. As for the sharia insurance principles, I will explain them all in a moment.

So, simply and in other terms, I would like to say that the purpose of sharia insurance is for Muslims to get good things especially financially.

That’s a brief explanation of the purpose of sharia insurance. As Muslims, we must understand that.

Is There Sharia Insurance?

The third important point about sharia insurance principles that I will explain now is “is there sharia insurance?”. I want you to understand that because it is one of the important questions about sharia insurance that is not well understood. In addition, there are some Muslims who doubt that there is sharia insurance.

One important thing I want to clarify before I explain the answer to this question, is that sharia insurance is insurance that uses sharia principles as insurance principles. Sharia 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 sharia 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 sharia 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 sharia insurance company. That’s the standard.

In several previous articles, I have explained several things about health insurance in Islam, life insurance in Islam, car insurance in Islam, medical insurance in Islam, fatwas on health insurance in Islam, fatwas on life insurance in Islam, fatwas on car insurance in Islam, and fatwas on car insurance in Islam. Islam, fatwas on medical insurance in Islam, and so on. I highly recommend that you read them all so you know whether there is sharia insurance or not.

So, in simple terms, if you ask me, “is there sharia insurance?”, the answer is that there is sharia insurance if insurance company uses sharia principles as the principle of managing insurance companies and funds.

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

Read Also:

Concept of Takaful (Islamic Insurance)

Seven Principles of Sharia Insurance

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

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