Benefits of Sharia Insurance
Benefits and advantages of Shariah insurance products
In general, the purpose of insurance
products is to provide a sense of security against life's risks. Such as risks
to health and life whose occurrence cannot be predicted.
For this reason, you have several
options of insurance products to protect you and your family, such as life
insurance or health insurance, both conventional insurance and Shariah
insurance.
Before choosing the type of insurance
you need, it's a good idea to find out about its benefits first. Such as the
benefits and advantages of each insurance product available.
This time, let's take a closer look at
Shariah insurance products. Basically, Islamic insurance and conventional
insurance both aim to provide protection when risks come our way. The
difference is that Islamic insurance offers the possibility for policyholders
to help each other in benevolence towards other participants of Islamic
insurance.
This is the advantage of Sharia
insurance products, namely to protect and help each other. Thus, the
policyholder does not only protect himself as a participant in the insurance.
However, you can also help others.
Benefits of Shariah Insurance
Here are the advantages and benefits of
Shariah insurance products :
1. Help through the Tabarru' Fund
The principle of mutual aid (takaful or
ta'awun) is exercised through the investment of assets or Tabarru'. Tabarru' is
a form of contract which is exercised for the purpose of benevolence and mutual
aid, not only for commercial purposes. Tabarru' is what makes the difference as
well as the advantage of Shariah insurance products. The Tabarru' Fund which is
deposited by the participants of the Islamic insurance will be used to help the
other participants in case of risk. In addition to gaining the benefits of
financial protection by helping each other, participants can also invest.
2. There is a distribution and allocation of excess subscription
In Shariah insurance, the term Surplus
Underwriting is known. The Technical Surplus is the positive difference between
the Participant's total contribution to the Tabarru Fund after deduction of
indemnities/claims, reinsurance contributions and technical provisions, over a
certain period. This is not known in non-Sharia compliant products.
In Sharia insurance, the underwriting
surplus can be divided into several allocations. Namely the Tabarru Fund, the
policyholders and the insurance companies. Of course, the calculation is based
on the percentage specified in the policy. If an underwriting shortfall occurs,
the insurance company, as manager through the Qardh contract, will provide
interest-free loans from the company's funds which will be channeled to the
Tabarru fund as a source of payment for the customer complaints.
3. There is a distribution of profits according to the Akad
The principle of sharia insurance
products is that no party feels disadvantaged. For what? Indeed, the Sharia
insurance company only manages the participants' funds. So if there is a profit
in managing these funds, the results will accrue to the participants. Thus, the
participants and the Shariah insurance companies will get a share in the
profits depending on the contract used.
4. Free Riba
Riba comes from the term usury fadhl,
which means excess (fadhl). Thus, fadhl usury is an excess or increase in
quantity in a transaction of sale and purchase of similar goods, such as
silver, gold, wheat or other objects, the amount of which is not the same.
Conventional insurance is classified as containing wear and tear because the
amount of premiums deposited by participants is not the same as the amount of
claims or indemnities they receive. The transfer between premiums and claims
does not take place at the same time. Investments contained in conventional
insurance are also placed in ribawi instruments.
Conversely, Islamic insurance is said to
be wear-free because no participant funds are confiscated. This is because
Islamic insurance will provide clients in the form of claims, compensation or
excess underwriting. In addition, incoming funds will be managed in
Sharia-compliant investment instruments under the supervision of DSN-MUI and
OJK. Investments offered in Sharia Insurance also use clear contracts so
participants are more comfortable.
5. More transparent
The management of funds by Shariah
insurance companies is carried out in a more transparent manner both in terms
of the use of insurance participants' contributions, underwriting surplus and
the distribution of investment returns. When there is an underwriting surplus,
the insurance company divides it into three parts whose value has been
indicated in the contract. This profit-sharing is made up of the part that goes
to the Tabarru Fund, the part that goes to the participants and the part that
goes to the insurance company.
Profit-sharing is also carried out
proportionally. In other words, participants who contribute a lot will also get
a large share of the profits. The profit-sharing provisions contained in the
contract since the inception of this agreement show that Islamic insurance is
transparent.
6. Overseen by Shariah Supervisory Board to ensure transactions in accordance with Shariah principles
The Sharia Supervisory Board (SPD)
oversees adherence to Sharia principles in the business activities of Sharia
financial institutions, including Sharia insurance. This is possible because
DPS members are a recommendation of the MUI National Shariah Council.
Besides its supervisory role, the DPS
also does not have the function of approving transactions carried out by Sharia
insurance, so that they comply with the principles of Islamic Sharia. For
example, determining which instruments can be used as an investment portfolio
by Islamic insurance.
Sharia insurance products
One of the Sharia life insurance
products that can provide these benefits is MiSmart Insurance Solution Syariah
(MiSSION Syariah) from Manulife Indonesia.
It is a Shariah insurance product from
Manulife Indonesia that provides life protection, optimal investment and
end-of-life benefits from the Shariah life insurance program in accordance with
the principles of Islamic Shariah.
The 3-in-1 solution (providence,
investment and health) will provide comfort and serenity in the face of risk.
In addition, MiSSION Syariah offers
participants the possibility to choose contributions according to their needs.
MiSSION Syariah also comes with health insurance as top-up insurance and a
total participant loyalty benefit of up to 750%.
Thus, the benefits and advantages of Shariah insurance products do not only provide protection and comfort of life. But you can also sow blessings and share for others with Sharia assurance.
