Insurance Law According To Islam, Referring From The Qur'an, Hadith, And MUI Fatwa

Insurance law according to Islam (freepic)

YOGYAKARTA - insurance ownership is very important as protection or protection from risks in the future. But what about insurance laws according to Islam? Many wonder whether insurance products are haram or halal for Muslims.

Referring to the fatwa issued by the Indonesian Ulema Council (MUI), Islam does not prohibit someone from having insurance. However, provided that the funds from the insurance are managed properly according to Islamic law.

The existence of insurance can provide financial protection when it comes to disasters that you or your family may experience. For example, when exposed to disease, disaster, and so on. So what is the insurance law according to Islam like and what is the recommendation?

Insurance laws in Islam are recognized as valid during sharia principles. In addition, the purpose of insurance must be in line with sharia maqashid, namely to create prosperity and economic justice for mankind.

For further explanation, several basic insurance laws in Islam can be found in the Koran, hadith, and MUI fatwa.

The insurance provisions in Islam are not explicitly explained, both in Al-Qu'ran and the hadith of the Prophet Muhammad SAW. However, if you choose sharia insurance that prioritizes Islamic principles, there is a argument from the Koran and hadith that discusses insurance, namely:

In Indonesia, the law regarding insurance has been regulated in a fatwa issued by the National Sharia Council (DSN) of the Indonesian Ulema Council (MUI). The main fatwa regarding insurance law in MUI is MUI Fatwa No. 21/DSN-MUI/X/2001 concerning General Guidelines for Sharia Insurance.

The fatwa is used as a legal basis for insurance in Islam in Indonesia, especially for sharia insurance. In this fatwa, sharia insurance is required to follow sharia principles, such as avoiding fraud, gambling, usury, persecution, bribery, illicit goods, and immorality.

In particular, the provisions of sharia insurance imposed in Indonesia have been regulated in the following fatwas:

In Indonesia itself, the provisions regarding insurance are listed in Permenkeu No. 18/PMK.010/2010 concerning the Basic Principles for Implementing Insurance and Resurance Businesses with Sharia Principles.

With this legal basis, it is hoped that sharia insurance can provide fair financial protection and is in line with the principles of economic justice in Islam. In addition, the management of Islamic insurance funds must also follow sharia principles in investment and profit distribution.

The Permenkeu also regulates the basic principles of implementing Islamic insurance and reinsurance businesses, including aspects such as helping (ta'awuni), managing tabarru' funds, and implementing sharia principles in company operations.

That is the explanation of the insurance law according to Islam and its provisions in Indonesia. A Muslim is allowed to have insurance as long as the funds are managed in accordance with Islamic law. Also read tips for choosing the right life insurance.

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