What is the Halal Insurance?
Halal Insurance is basically a form of Islamic insurance that meets the principles of Sharih. It is usually referred to as Jakaful in the Arab language, which means they guarantee each other . This form of insurance centers around the ideas of donation, mutual cooperation and carrying the burden of another. The concept has some similarity to Chit funds that are popular in India. Overall, the system eliminates uncertainty, divides losses and shares the risk of policyholders.
It is assumed that it was created many centuries ago in the middle of Arab tribes as a way to share responsibility. People have contributed money to a common fund that could pay off compensation by the victims of tragedies or to help those who have suffered problems during long trips. The cooperative form of insurance has been designed to support mutual cooperation and solidarity. People who contributed money in the form of gifts agreed to share the risk of any loss or part of their money. Practice continues to this day and shows the willingness of the involvedpeople to help others at their time need.
There are no real policyholders in Halal insurance - people who contribute to mutual fund, participate in mutual benefits. Each person in Halal insurance pays a subscription or bonus and profits are shared among the contributors. The obligations are distributed between the whole community and the losses are divided. There is no uncertainty about compensation and subscription. In principle, the Halal insurance form does not attempt to gain the advantage at the expense of others.
It is very different from conventional insurance, where it is distinguished between shareholders and policyholders. In the conventional system, the insurance company carries all risk. The person pays for a large amount of uncertainty because both sides do not have a clear idea of what can happen. For example, if a person provides his car, the company must be a lot of money in the event of an accident. If the owner has never tickedIt is an accident, then the owner is an abbreviation, because for paying the premium will not get anything in return.
Also, companies are not completely transparent on the basis of conventional insurance agreements, and many of them can cite different premiums for people based on criteria such as gender and age. Any politician also gives out the benefits of shareholders and second, because they are in business to make money. These companies can also invest capital in enterprises or enterprises that are declared unlawful under Islamic law.In the case of Halal insurance, a company managing this insurance policy does not guarantee a positive return. Providing such a warranty would mean that Intby was received by eRest, which goes against Sharih. The company operates only as a business agent for its contributors, maintains assets and protects them. There are many Halal insurance plans for stakeholders that cover health, family and other aspects of life.