Insurance is an important financial institution in the modern economy. In the field it is more important than the bank. The bank cannot take effective initiative to assist him if any business or vehicle is damaged due to an accident or if the business institution is destroyed for any reason. The same applies to death. Insurance can provide them with effective support when a family head or principal earner suffers an accident or death, and when the family’s grief goes down and financial helplessness arises. But with insurance, there are various smoke generated in our society. Although there are many differences between conventional insurance and Islamic insurance (takaful), we often combine the two.
Apparently the conventional interest-based insurance system seems to be an independent savings system to meet future needs. But it contains five basic anti-Shariah elements that if it is not banned, it is impossible for Muslims to participate in this insurance system by maintaining their faith. Therefore, Islamic Shariah experts have expressed unanimous opinion that traditional traditional insurance is not acceptable in Muslim society.
Common insurance has anti-Shariah elements
A. Al-Ghara (Unknown / Uncertainty): Under the prevailing insurance system, the insurer completes a certain amount of money policy with the insurance company and deposits the money in fixed installments as premiums in many installments. In this case, after the premium has been credited, the insurance company pays the entire amount to the insurer or his nominee in case of an accident or death. But where this money is paid is unknown or unknown to the insurer. This ignorance or uncertainty exists in both conventional insurance and life insurance. In the Shariah terminology it is called al-Gharar.
B. Al-Maisi (Gambling): Gambling or Al-Maisir originates because of the existence of al-Ghara in life insurance. For example, when a life insurance policyholder dies before his / her insurance expires, partial payment of the contract premium is paid even if his nominee or nominee receives the full amount of the contract money. In Shariah’s view, this is gambling.
C. Alriba (interest): Interest transactions, interest-based investments and other related exchanges continue in the practice of conventional insurance companies, which the Fakihists have unanimously ruled that is contrary to Sharia law and discipline.
D. Nomination against Shariah: Allah Almighty has identified the descendants of the deceased and assigned their rights. But in the conventional insurance system, the insurer can nominate any person he wishes. Depriving all the heirs, these nominees will get the full amount of insurance, which is a clear distortion of the Shariah. This is against Adil and Ihsan.
E. Existing Premium Payment Terms: Under the existing Insurance Act (without life insurance), there is a fixed term for the insurance policy to take effect. If one of the installments is non-repayable, then the amount paid by the insurer as a premium till that time is completely lost. For example, in the current general insurance system it is mandatory to pay at least two years of premium for the insurance to work. If an insurer pays a premium on a quarterly installment, he will have to pay eight installments in two years. But if he cannot pay the remaining installment for some reason after submitting the seven installments, then the policy will not be considered valid and the insurer or his nominee will not get anything. That is, the capital of the insurer will be lost. This is against Adil and Ihsan.
But there is no objection to Islam in the face of adversity and sudden disaster and creating a secure future for children.
In view of the various crises and problems, Islamic law and insurance specialists have long thought, deeply researched and reviewed in order to meet the needs of the Muslim Ummah and to find an alternative insurance system acceptable to Islam. In the end, they have been able to invent the Islamic system of insurance. Several international seminars have been organized in connection with Islamic Shariah insurance management. Of them, six in Damascus, five in Cairo, The summit was held in Morocco and Libya in 7 and Morocco and Libya in 7, and Mecca in Mecca on the 5th. Finally, at the OIC summit in Mecca in the 5th, the unanimous proposal was adopted to introduce Islamic insurance in the participating countries. It is important to note that the first Islamic insurance program started in Bahrain. For that reason, separate laws have also been made in that country. Then gradually the Islamic insurance spread throughout the Middle East. Its operations in Africa began in Sudan. Malaysia is far ahead in this regard in the Far East. Malaysia has promulgated a separate law called ‘Takaful Act, 1’ to promote Islamic insurance.
Islamic insurance has gained special fame by the name of Takaful. It derives from the Arabic kafala word. It means a joint guarantee or collective guarantee, that is, mutual responsibility. In practical application, looking forward is the collective assurance of a specific member group that guarantees the necessary assistance to compensate the injured member or members of an accident or any other cause. Members of the group are bound to a joint assurance agreement so that a member can receive a certain sum of money to compensate for an accident or disaster. In fact, it is the members of the group who all come together to support one of their dangers at the same time. Fraternity is the basis of the Takaful system, Solidarity and mutual cooperation. Therefore, Islamic insurance is a subsidiary and welfare organization, and it is a grouped way of coming forward with the help of a believing brother.
Author: Amanullah Noman