MUI Fatwa on Tabarru' Sharia Insurance Indonesia

MUI Fatwa on Tabla 'Sharia Insurance

Fatwa Dewan Syari'ah Nasional Majelis Ulama Indonesia no: 53 / DSN-MUI / III / 2006 tentang 

Tabarru 'on Shariah Insurance 

Considering: 

a. that fatwa No. 21 / DSN-MUI / X / 2001 on the General Guidelines of Sharia Insurance is considered to be very common, so it is necessary to supplement the detailed fatwa;

b. that one of the required fatwas is the fatwa about Akad Tabarru 'for insurance;

c. that, therefore, the National Syariah Council sees the need to appoint a fatwa on Akad Tabarru 'to be guided.

Remember : 

1. The Word of Allah SWT, among others:

• give to the orphan (their wealth), do not change the good with the bad and do not eat their property with your property. Indeed, the actions (transgressions) are a great sin. (QS. Al-Nisa '[4]: 2). 

• "And fear Allah those who would have left behind those weak children, whom they feared for (their) welfare. Therefore let them fear Allah and let them say the truth. "(QS. Al-Nisa '[4]: 9).

• "Hai orang yang beriman! Bertaqwalah to Allah and let each person observe what has been made for tomorrow (the future). And fear Allah. Allah is Aware of what you do. "(QS. Al-Hasyr [59]: 18). 

2. The Word of Allah SWT on principles of prayer, both of which must be implemented and avoided, among others:

• "Hai orang yang beriman! Perform the contracts. Lawful to you cattle, except those to be recited to you. (That is it) by not a hunting when you are performing hajj. Verily, Allah decrees the law according to His will. (QS al-Maidah [5]: 1). 

• "Verily, Allah commands you to convey the message to the one who deserves it and when we judge between men, be fair. Allah is the Best of you. Allah is the Hearing, the Seer. "(QS. Al-Nisa '[4]: 58). 

•  "Hai orang yang beriman! Do not you take the wealth of others wrongfully, unless it is a voluntary trade between you. And do not kill yourself; surely Allah is Most Merciful to you. "(QS. al-Nisa '[4]: 29). 

3. The Word of Allah SWT about the command to help each other in positive deeds, among others:

• "And help each other in virtue and piety, and do not help in sin and in transgression. And fear Allah, though Allah is severe in punishment. "(QS al-Maidah [5]: 2). 

4. The hadiths of the Prophet sallallaahu alayhi wa sallam about some of the principles of bermu'amalah, among others:

• o"Whoever releases from a Muslim a hardship in the world, God will release troubles from him on the Day of Judgment; and Allah always helps His servant as long as he (likes) to help his brother "(HR Muslim from Abu Hurairah). 

• "The parable of the faithful in love, loving and loving one another (the one); if one part suffer from illness then the other part will suffer "(Narrated by Muslim from Nu'man bin Basyir). 

• o "A mu'min with other mu'min is like a building, one part strengthens the other" (HR Muslim from Abu Musa al-Asy'ari). 

• "Whoever takes care of an orphan who owns property, let it trade, and do not let it (without trading) till it is exhausted by zakat and na'rakah" (Narrated by Tirmidhi, Daraquthni, and Baihaqi from 'Amr bin Syu'aib, from his father, from his grandfather Abdullah bin 'Amr bin Ash). 

• "The Muslims are bound by the conditions they make except the conditions that prohibit the lawful or justify the unlawful." (Narrated by Tirmidhi from 'Amr bin' Auf). 

• "It can not harm yourself and should not harm others." (Ibn Majah's Hadith narrated from 'Ubadah bin Shamit, Ahmad's story from Ibn' Abbas, and Malik from Yahya). 

5. The fiqh rule:

• "Basically, all forms of mu'amalah can be done unless there is a forbidden argument." 

• "Any harmharat should be avoided as far as possible." 

• "All the mudharat (danger) should be eliminated."

Noticing: 

1. The opinion of scholars, among others:

• Funds (premiums) provided by insurance participants are tabarru '(charity) from participants to (through) companies used to assist participants in need based on agreed terms, and the company gives it (to participants) as tabarru 'or pure grants without compensation. (Wahbah al-Zuhaili, al-Mu'amalat al-Maliyyah al-Mu'ashirah, [Dimasyq: Dar al-Fikr, 2002], p. 287). 

• The fiqh analysis of the obligation (participant) to give tabarru 'in turn in the ta'awuni insurance contract is "the rule of obligation to give tabarru'" in the Malik school. (Mushthafa Zarqa ', Nizham al-Ta'min, pp. 58-59; Ahmad Sa'id Syaraf al-Din,' Uqud al-Ta'min wa 'Uqud Dhaman al-Istitsmar, pp. 244-147; 'in Abu Jaib, al-Ta'min bain al-Hazhr wa al-Ibahah, p. 53). 

• The legal relationship arising between the insurance participants as a result of the ta'min jama'i contract (collective insurance) is the contract of tabarru '; each participant is tabarru 'funder to another participant who is affected by the damages (assistance, claim) that he is entitled to; and at the same time he was entitled to receive tabarru 'funds when exposed to misfortune (Ahmad Salim Milhim, al-Ta'min al-Islami, h, 83). 

2. The result of Shari'ah Insurance of DSN-MUI with AASI (Sharia Insurance Association of Indonesia) dated 7-8 Jumadi al-Ula 1426 H / 14-15 June 2005 M.

3. Opinion and suggestion of participants of the National Sharia Council Plenary Meeting on 23 Shafar 1427/23 March 2006.

DECIDED 

Establish: FATWA ABOUT THE TABARRU ACADEMY 'IN SYARI'AH INSURANCE

First: General Provisions

In this Fatwa, which is meant by:

a. Insurance is life insurance, insurance, and Syariah reinsurance;

b. participants are insurance participants (policyholders) or insurance companies in shari'ah reinsurance.

Second: Legal Provisions

1. Tabarru 'contract is an agreement that must be attached to all insurance products. 
2. Tabarru 'contract on insurance is all forms of the contract made between participating policyholders. 

Third: Terms of Agreement

1. Insurance of Tabarru 'on insurance is a contract made in the form of grants with the purpose of virtue and to assist participants, not for commercial purposes.

2. In the Tabarru 'agreement, it should be mentioned at least:

a. individual rights & obligations of each participant;

b. rights & obligations between participants individually in the tabarru 'account as participants in the body/group sense;

c. how and when payment of premiums and claims;

d. other agreed terms, in accordance with the type of insurance being adopted.

Fourth: The position of the Parties in the Tabarru '

1. In the Tabarru 'agreement, participants provide grants that will be used to assist participants or other participants in the disaster.

Individual participants are those who are entitled to receive tabarru 'funds (mu'amman / mutabarra' lahu, مؤمن / متبرع له) and collectively as an insurer (mu'ammin / mutabarri'- مؤمن / متبرع).

3. The insurance company acts as the grantee of the fund, on the basis of the Wakalah contract from the participants in addition to the investment management.

Fifth: Management

1. The bookkeeping of Tabarru 'funds must be separate from other funds.

2. The proceeds of the investment from tabarru funds 'become the collective rights of the participants and are recorded in the tabarru account'.

3. As a result of an investment, an insurance company can obtain a profit sharing based on the Mudharabah contract or the Mudharabah Musytarakah contract, or obtain a fee based on the Wakalah bills of Ujrah.

Sixth: Underwriting Surplus

1. If there is a surplus underwriting on tabarru 'funds, then there are several alternatives as follows:

a. Implemented entirely as a reserve fund in tabarru 'account.

or b. Partially retained as a reserve fund and partly distributed to eligible actuarial / risk management participants.

c. Partially retained as a reserve fund and may be shared by some to the insurance company and the participants as long as the participants agree.

2. The choice of one of the above alternatives must be approved by the participant first and set out in the contract.

Seventh: Underwriting deficit

1. If there is an underwriting deficit on the tabarru 'fund (tabarru deficit), the insurance company is obliged to cope with the deficiency in the form of Qardh (loan).

• qardh refund to the insurance company is set aside from tabarru 'fund. 

Eighth: Closing Terms

1. If either party fails to fulfill its obligations or in the event of a dispute between the parties, the settlement shall be made through the Syariah Body of Arbitration after the agreement has not been reached.

2. This fatwa is valid from the date of the stipulation, provided that in the future there is a mistake, it will be altered and refined as it should.

Established in: Jakarta
Date: March 23, 2006/23 Shafar 1427 H
NATIONAL SYARIAH COUNCIL
UNLOCKING INDONESIA COUNCIL


Head,
DR. KH. MA Sahal Mahfudh

Secretary
Drs. HM Ichwan Sam

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