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Getting to Know Sharia Insurance and Its Advantages

 Globally, one of the lifestyle trends that have emerged in recent years is the halal lifestyle. A halal lifestyle is a lifestyle in which a person's behavior, interests, and habits follow sharia principles. 

Living a halal lifestyle not only includes the choice of daily necessities consumed and used, such as food or clothing but also includes banking products to insurance. 

Along with the growth of the Islamic economy in Indonesia, the demand for Islamic financial products and services, such as insurance, also continues to increase. Although sharia insurance products have been available for quite a long time, this product is still less known and understood by the wider community when compared to conventional insurance products.

Sharia insurance uses the principle of risk sharing which means that the risk of one person is borne by all policyholders to help each other through the funds collected, also known as tabarru funds. 

Here are some of the main advantages of sharia insurance that you need to know:

1. Protected from unlawful investments 

Sharia insurance is managed by adhering to sharia principles. Risk management is carried out by following Islamic law so that it is protected from elements of usury (interest), Maisie (gambling), gharar (obscurity), risywah (bribery), and other things that violate the law. In addition, the management of funds in sharia insurance cannot be invested in companies that offer products or services that are prohibited by Islamic law. 

2. Uphold the principle of justice

To ensure that no party is harmed, sharia insurance emphasizes the principle of fairness. Policyholders share the same responsibility for the risks and benefits of tabarru funds. If there is excess after the calculation and the reserve of claims to be paid, then the excess can be redistributed to the tabarru fund, the policyholder who meets the criteria, and the insurance provider according to the percentage specified in the contract. 

3. No forfeited funds 

Premiums deposited by the policyholder to the insurance provider will not be forfeited even if no claims are made during their coverage period. The funds that have been paid by the policyholder will be accumulated in the tabarru fund, which belongs to the policyholder (participant) collectively. Any profit earned from investing in tabarru funds will be given to the policyholder and/or returned to tabarru funds. 

4. Peace of mind with additional supervision by the Sharia Supervisory Board 

In addition to being supervised by the Financial Services Authority (OJK), sharia insurance providers are supervised by the Sharia Supervisory Board in addition to supervision to ensure that products, marketing, and fund management follow sharia principles. 

6. Choosing Shariah-Compliant Protection 

Sompo Insurance Sharia is a business unit of PT Sompo Insurance Indonesia which is supported by the company's 47 years of experience in the country. Sompo Insurance Syariah currently offers products for individuals and companies, such as a motor vehicles, asset, and property insurance. 

Sharia motor vehicle insurance protects holders of cars and vehicles from loss and damage caused by accidents, thefts, or criminal acts. Meanwhile, sharia property insurance protects your property assets, including furniture and vehicles located on the property from damage or losses arising from fires, natural disasters, and other incidents.

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