In life, humans are always faced with uncertainty and various possible risks. From birth to finally close age. These risks include personal accident, death, loss due to loss of all or part of property, and others. All risks that befall humans are qadha and qadharfrom Allah Almighty, however, humans continue to be obliged to take precautionary measures to minimize the risks arising from these calamities and misfortunes (Maryani, 2010: 1). To overcome the uncertainty that occurs in the future, then humans try to replace the uncertainty with something certain. To create certainty in the risks that will arise they make a group to bear one another when the risk befalls one of their members. One of the actions taken to avoid risk in order to regulate the economy and finance is to provide insurance.
In Indonesia there are insurance institutions that consist of conventional insurance and sharia insurance. Insurance under Law No. 02 of 1992 concerning insurance business is an agreement between two or more parties, with which the insurer binds itself to the insured, by receiving insurance premiums, to provide compensation to the insured due to loss, damage or loss of expected profits or legal liability of a third party that may be subject to suffered by the insured, arising from an uncertain event, or providing a payment based on the death or life of the insured person. (Hafidhuddin, 2009: 09).
Whereas sharia insurance according to the National Shariah Council of the Indonesian Ulama Council (DSN-MUI) is a mutual protection and mutual aid between individuals / parties through investments in the form of assets and or tabarru ‘ that provides a return pattern to deal with certain risks through the agreement (alliance) ) in accordance with sharia (Hafidhuddin, 2009: 09).
According to data from the Financial Services Authority (OJK) it was noted that the development of the insurance industry in Indonesia experienced a significant increase. This shows that people are starting to understand insurance is a part of risk management that must be prepared in life both as self-protection, business and others.
In addition to the five challenges, conventional and sharia insurance also reaped many pros and cons among the scholars and academics. M. Nejatullah writes about insurance in Islam, he has a slightly different opinion from traditional scholars. His views on insurance are more open than other scholars. He argues that insurance is different from gambling because it has a different basis, and in essence Islam does not oppose the idea of risk management that can be calculated, as in the case of insurance. (Ash-Shiddiqie, 1986: 05)
Modern groups who are very supportive of the existence of life insurance say that life insurance is not designed to overcome God’s authority, but only pay compensation to the insured who suffered losses. Because this is a collaboration to ease the burden on the family. While those who forbid insurance including; Sheikh Muhammad Abu Zahrah who said that life insurance is a gamble because it is not natural for a person to pay only a portion of the actual payment amount to adjust the amount of all money if he dies. Likewise with Mahdi Hasan an Indian mufti, he said life insurance is haram because there is an element of bribery. Because compensation provided through insurance is a payment for something that cannot be assessed. (Ash-Shiddiqie, 1986: 05)
The National Sharia Council of the Indonesian Ulema Council (DSN-MUI) in its fatwa on general guidelines for sharia insurance, gave a definition of insurance. According to him, Sharia Insurance (Ta’min, Takaful, Tadhamun) is an effort to protect each other and help among a number of people / parties through investments in the form of assets and / or tabarru ‘ which provide a pattern of return to face certain risks through a contract. in accordance with sharia. (Hafidhuddin, 2009: 09)
From the above definition, it appears that Islamic insurance is mutually protecting and helping which is called ‘ta’awun’ . Namely the principle of life to protect and help each other on the basis of Islamic brotherhood among fellow members of Islamic insurance participants in the face of disaster (risk). (Sula, 2004: 30).
Sharia Insurance History
The concept of insurance has actually been known since the days of BC where humans at that time had saved their lives from various threats such as overcoming food shortages in ancient Egypt, in the story of the Prophet Joseph, who was asked to translate the dream of a king. The essence of the dream, the Prophet Yusuf (as), translated that for seven years the country of Egypt would experience an abundant harvest and then the famine would follow in the next seven years. To guard against the famine, the King followed the Prophet Joseph’s advice, setting aside some of the assets from the first seven years of harvest as food reserves during famine, so that during the famine seven years, the Egyptian people could avoid the risk of famine great that hit the whole country. (Muslehuddin, 1999: 37).
Ancient Arab society has known about the principles of insurance since time immemorial. When life was still dominated by various tribes, mutual attacks and kidnappings were still common. Women and children are the most common abduction targets. From the results of the abduction of the children and women, then they ask for ransom from the loss. If it turns out that in the middle of the road the prisoner was killed then the blood money (compensation money) will be paid by the party who killed the party to be killed. This is where the origins of mutual insurance begin to form. Although it’s a form of mutual insurancethis is the most primitive form of insurance, and there are many differences with existing insurance, but if you pay attention, of course there are also similarities. (Muslehuddin, 1999: 37).
The basics of mutual insurance are members both individually and collectively as an insurer as well as the insured. Judging from the nature of the organization, there is no intention of seeking profit nor is there any intention of exploitation to enrich one party by blackmailing the other. (Muslehuddin, 1999: 37)