Cooperative Insurance ("Islamic Insurance") in Islamic Jurisprudence: An Analytical Study

Abstract

      The research addresses contemporary issues in financial transactions, namely (the issue of insurance). Insurance is one of the modern contracts that has permeated most aspects of a Muslim's life and is considered a fundamental aspect of contemporary commercial dealings. The researcher has taken this research into (cooperative insurance “Islamic insurance” in Islamic jurisprudence - an analytical study). Therefore, it was necessary to address this contract and know the Sharia ruling on it. Then the researcher addressed one of the issues of insurance, which is (cooperative insurance) and what is related to it in terms of the ruling and the factors affecting the Sharia ruling on it, This study examines its characteristics, how it came to be called Islamic insurance instead of cooperative insurance, its forms and regulations, and the differences between cooperative and commercial insurance. The researcher adopted an inductive-analytical approach, as this method involves gathering the opinions and views of scholars, both classical and contemporary, along with their original legal texts, to support the research.

Among the findings of the researcher

1. Cooperative insurance is based on donation in its form, while commercial insurance aims for profit. As for its subject matter, insurance is based on damages. The purpose of insurance is to mitigate the risks and misfortunes that befall some individuals, and its purpose is not exploitation and profit-making for certain people.                                                            

2. There must also be a government body that supervises insurance companies and their systems, and monitors their relationship with policyholders, so that neglecting this does not lead to the insurance market spiraling out of control and people’s money being manipulated. Scholars, specialists, research centers, and Islamic insurance experts should provide more research and studies to develop Islamic cooperative insurance projects through specialized workshops and in-depth research and studies.