Takaful

Takaful-Takaful is an insurance run in accordance with the rules of Islamic law. As with conventional insurance, Takaful goal is better management of risk to property and lives. Both are just different in the policy contract bonds and some operational aspects, especially investment activity.

Policy Contract

Conventional insurance has not considered it because there are sharia-compliant transactions between the policyholder and the insurance company. Conventional insurance policy is a kind of agreement in which the policyholder pays a premium promised a certain amount of insurance coverage for a specific number. The agreement will be void if the premium is not paid.

This agreement is deemed to contain speculation (gharar) because there is uncertainty over the goods / services transacted. Insured pays the exact numbers, but the insurance company guarantees promised uncertain because no one knows what will happen insured risks.

To overcome this, Takaful create a different approach. In Islamic insurance, the sale and purchase transaction is converted into donations / contributions. Islamic insurance policy states that the insured will set aside some cash premium as donation / contribution will be collected in a mutual fund (tabarru ') for the payment of claims. Insured then collectively mengamanahkan mutual fund to be managed insurance company. Thus, there is no transaction between the insurer and the insured, there is a bond between policyholders bear one another through the mechanism of mutual funds. To calculate the amount of money that was "mandatory donated" their policyholders, insurance companies use actuarial and underwriting methods similar to those used in setting insurance premiums on conventional staple.

Investment

As with conventional insurance, Takaful products can also have a savings or investment element. However, to conform to the rules of Islamic development investment should be done with interest-free mechanism and in the halal industry. Therefore, managers Takaful just put funds in savings, deposits, bonds, and mutual funds. They also do not put money in stocks in industries such as cigarettes, alcohol and conventional banking.