2 Advantages of Takaful Motor Vehicle Insurance

Insurance is one way to minimize the financial losses that unexpected and can happen to anyone at any time, including motor vehicles. In Takaful types of risks insured under a motor vehicle insurance is roughly equal to the motor vehicle insurance on conventional insurance, but there are things that distinguish between different contract limits its use. The use of motor vehicle for activities related to matters such as those involving pornography illegal, pornographic, can not be insured on Takaful.

Islamic insurance companies to allow the return of surplus tabarru 'if participants do not have to make a claim motor vehicle insurance or if the amount of the claim does not reach certain agreed value. This concept is also found in conventional insurance which is called the 'no claims discount' or 'no claim bonus', but they are required to extend the motor vehicle insurance policy for the next period. While the Takaful participants do not have to extend the motor vehicle insurance policy to get a refund of surplus tabarru '.

 

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2 4 Reasons why Takaful is better than conventional insurance

The following are reasons why takaful is better than conventional insurance:

1. Takaful is defined as an effort to protect each other and mutual help among people through investing in funds tabarru 'giving patterns return to a particular risk through the contract Shariah compliance. Basically Takaful and conventional insurance have the same goal, which is to manage and cope with risk. However, fundamental differences in the initial contract makes Takaful more fair compared to conventional insurance. Applying conventional insurance contract of sale, while the Takaful contract applying mutual assistance among member insurance. In other words, takaful using the principle of risk-sharing , whereas in the conventional insurance is a risk transfer that occurs from the client to the insurance company.

 2. Takaful fund management through to avoid the forbidden elements of usury (interest), gharar (uncertainty of funds), and maysir (gambling). Mudharabah appropriate, namely the cooperation agreement in which participants provide capital, to be managed by the Takaful company profit-sharing contract. If there are Islamic insurance claim, the funds to pay claims deducted from the account tabarru 'all participants. Unlike conventional insurance where the funds to pay claims from insurance companies.

3. Excess Takaful, are not familiar with the term forfeited funds like conventional insurance .Takaful participants can get their money back even if not yet due. Because the concept is a deposit, refunded from the account Takaful participants who have been separated from the account tabarru '. This is reasonable because the operational costs incurred Takaful policyholders are limited in the range of 30% of the premium, so the formation of the cash value in the first year has reached 70% of the premium. Unlike conventional insurance where the total operational costs borne by the policyholder, so the formation of the cash value to be slow, the first year is equal to zero.

4. Profit-sharing in the company and the Takaful insurance participants using the principle of sharing as prescribed. While in conventional insurance all the advantages of being the property of the company. 

 

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0 The Concept of profit Sharing and Risk Sharing Offered Takaful

Takaful besides obviously halal also embody justice between parties to a transaction, it is because the application of the principles and ease of transacting syar'i offered. Two concepts that offer Islamic insurance companies, profit-sharing system and risk management system, can be explained as follows:

1. Profit sharing system against the management of the Takaful fund.

Insurance as well as investing an attractive option. Usually when someone follows the insurance, he must pay a premium, with no separation between where the funds are to benefit if the insured event occurs later, and where the funds benefit the final contract amount has been determined since the beginning. However, where the insured to terminate the contract in the early years, the insured may not obtain any benefit from the premiums they pay to the insurance company (fund forfeited).

Concepts like that cause harm to the participants and the profits for insurers. For that Takaful provides a solution to the separation of funds. Funds are divided into two different accounts that tabarru funds' and investment funds. Tabarru funds' intended to fund benefits when there is other insurance participants were affected, while the investment funds are managed in accordance with the agreement that has been made.

Funds collected insurance participants and invested in businesses that match syar'i. The fund will be returned to the participants if the agreement has expired, the participant resigns, or when the participant dies. In addition participants will also benefit from the investment of the fund.

Regarding premiums, insurance participants may choose payment monthly, quarterly, semiannual, or all at once.

 2. Risk management systems in Takaful.

In order to provide sufficient funds to benefit the Takaful participants who experienced the disaster, tabarru funds' invested in a business suit syar'i. If at the end of the contract underwriting surplus, the amount of funds tabarru 'plus the investment return is greater than the number of claims and the costs imposed on the fund, the surplus is shared with a variety of options:
1. Entirely reserved funds back in the account tabarru '
2. Some returned to the participants and some of the funds are reserved tabarru '
3. Some returned to the participants, mostly paid to the Islamic insurance companies, and some are reserved in the fund account tabarru '

If the Islamic insurance companies feel risk-managed beyond its capacity, some risks will be shared with the company Retakaful. Consequently some of the funds tabarru 'run will also be paid to the Islamic reinsurance company (Retakaful).

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0 Takaful : Benefit of Takaful

When we see the Takaful and konventional Insurance is very prominent differences is the principle of mutual help in Takaful. This principle is so calming and reassuring even very beautiful. Here is an explanation of Islamic insurance benefits:

Insurance benefit for participants

Takaful in basically open to all and not just for Muslims, non-Muslim people can be the Takaful participants. Participants will receive insurance benefits once the contract has been signed. Benefits include:

1. Insurance participants have set the intention for mutual help among the participants in the event of disaster.
2. Participants get the insurance guarantee fund management services as well as Islamic insurance company.
3. Participants can earn a profit from insurance investment objectives clearly halal status.

Benefit for Islamic insurance ( takaful ) companies 
In terms of organization there is no provision that the owner should Takaful is a Muslim. Even so, anyone Takaful owner must apply the principles of Islamic law in managing the company. Benefit for companies include:

1. Takaful Company and employees have the opportunity to manage religious charity based on the principle of Islamic funds.
2. Expand oportunity and the relationship with community members while providing instruction regarding the Islamic principle of financial management.
3. Professionals are challenged to manage the funds of the people.

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0 Takaful : Insurance Options, Safer, and Reassuring

Before discussing about Takaful's good we reviewed the insurance first. Insurance is "an agreement between two or more parties, with the insurer to bind themselves to the insured, by accepting the insurance premiums, to provide reimbursement to the insured for loss, damage or loss of profits expected, or legal liability to third parties which may be suffered by the insured, arising from an uncertain events, or for payment based on the death or life of the insured. " In other words, insurance is a risk management concept by way of transfer the risks that may arise from specific events that are not expected to others who could replace the losses suffered in return receive a premium. 

Insurance companies as an underwriter, with a particular technique to estimate the magnitude of risk, and thus the amount of insurance premiums can be estimated. The amount of the premium received by the insurance company more than enough to cover the losses of the insured, this is called underwriting profit, which is one source of conventional insurance benefits. Sources of other advantages for conventional insurance comes from the difference of technical interest rate of return.

In Takaful both insured and the insurer are the participants . Takaful company in this case acting as a manager, in charge of taking care of the problem of membership data administration, managing risk, managing funds, and pay claims according the agreement. In return the company earned from wages and profit sharing fund management is done and got part of the underwriting surplus suitable agreed.

Takaful and conventional insurance use the same mechanism in order to spread the reinsurance risk management. The difference, Takaful use sharing of risk, whereas conventional insurance using the concept of transfer of risk.

Takaful as a company is a business applying the principles of shar 'i so clearly halal status. Excellence principles shar 'i is the realization of justice between parties to a transaction as well as the conveniences ex-ease in Bertran's action. Two tings to offer Islamic insurance companies are: 

• System share the results of the management of funds
• System of risk sharing among participants

Funds paid to the sharia immediately separated in a different account, that account tabarru funds' and fund accounts of participants, if any. The funds tabarru 'is used as a means of sharing the risks by providing compensation if any participant of the unfortunate as they are agreed. The funds will be invested and the participants recorded in the accounts as the benefits of the participants at the end of the contract or when participants terminate the agreement. With Takaful we get three at once the benefit is insured, charity and invest.

In a fatwas on general guidelines for Takaful Indonesia Ulema Council decided as follows :

First: General Provisions

1. Takaful (ta'min, Takaful, Tadhamun) is an attempt to protect each other and help each other among a number of people / parties through investments in the form of assets or tabarru 'giving patterns return to a particular risk through the contract (engagement) in accordance with sharia.
2. Shariah compliance covenants referred to in point (1) is that it does not contain gharar (lack of clarity), gambling, riba (interest), zulmu (persecution), risywah (bribes), illicit goods and sinners.
3. Akad tijaroh are all forms of contract are undertaken for commercial purposes.
4. Akad tabarru 'are all forms of agreement made ​​with the aim of kindness and mutual assistance, not merely for commercial purposes.
5. Premiums are liability insurance participants to provide funds to the insurance company as agreed in the contract.
6. The claim is the right insurance participants must be given by the insurance company as agreed in the contract.

Second: Akad in Insurance

1. Akad made ​​between the participants and the company consists of akad tijarah and akad tabarru '.
2. Akad tijarah referred to in subsection (1) is mudaraba, while akad tabarru 'is a grant.
3. In the contract at least be mentioned:

a.        The rights and obligations of participants and the company.

b.       The manner and time of payment.

c.        Type of akad  tijarah and or akad  tabarru 'and the conditions agreed upon according to the type of insurance.

Third: the status of the parties to the akad  Tabarru' and  Tijarah  

1. In contract tijarah (mudaraba), the company acts as mudharib (manager) and the participants act as shahibul mall (the policyholder).
2. In contract tabarru '(grant) participants provide grants that will be used to help other affected participants. The company as a grants manager.

Fourth: The provision in the contract Tijarah and Tabarru '

1. Tijarah contract type can be converted into a contract tabarru 'if the parties retained their rights willingly waived his right to abort obligations that the parties have not fulfilled their obligations.
2. Tabarru contract type 'can not be converted into a type of contract tijarah.

Fifth: Type of Insurance and agreement 

1. In terms of type of insurance, it is composed of general insurance and life insurance.
2. The contract for the two types of insurance are mudaraba and grants.

 

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