8 Differences Takaful and conventional insurance read this !!!

8 Differences Takaful and conventional insurance read this !!!

Welcome. Islamic and conventional insurance. we will discuss the difference between the two types of insurance.

Conventional insurance or insurance that we know in our daily lives has much in common with Islamic insurance, which is equally aimed at tackling risk. Nevertheless. The insurance both have some differences. there are 8 difference between the two, what are the differences?

1. contract.

Takaful agreement in principle is mutual help. any insured person who has an excess of the insured person are encouraged to help others in distress. agreement in principle based on Islamic sharia insurance. contract in Islam is built to achieve justice and distanced persecution. example is the seller obligated to deliver the goods sold to the buyer after the buyer stating the purchase price. this is different from conventional insurance which applies the purchase agreement between the insured party to the insurer. in conventional insurance agreement applied only to meet the requirements for the seller, the buyer and the goods are bought and sold, while the amount of insurance premiums can not be explained in quantity to obtain insurance money.

2. Funds forfeited.

in Takaful not know forfeited funds such as conventional insurance, the insured person who resigned during the insured can take back the insurance premium has been paid. likewise, if the insurance period has expired and no insurance claim, the insurance company shall refund the insurance premium sharing system.

this is the opposite of conventional insurance system apply forfeited funds. if the insured person as a state was forced to resign at the time when the insured has paid insurance premiums, the fund has paid declared forfeited and become the property of the insurance company. charred funding system would result in the loss and injustice for the insured person who resigned.

3. The ownership of funds.

funds collected from the insured party on Takaful belong fully insured party and the insurance company only as a fiduciary. in contrast to conventional insurance, the funds collected in the conventional insurance is the property of the insurance company so that the funds can be allocated freely.

4. investment.

in Takaful funds collected are used to invest in a system for conventional insurance proceeds while using the funds raised to invest in the system of interest.

5. distribution of profits.

profits earned on Islamic insurance is shared between the insured and the insurer with the principle of profit sharing or in accordance with an agreed proportion. Conventional insurance benefit sharing are not there just for the insurance company only.

6. risk.

risks affecting the insured party on Islamic insurance is borne by the insured party other. but the risk of affecting the insured party on conventional insurance companies transferred to the insurance company as an insurer.

7. payment of insurance claims.

the payment of insurance claims on insurance companies using funds tabarru sharia. As for insurance payments koovensional using funds belonging to the company.

8. sharia supervisory board.

Islamic insurance is required to have sharia supervisory board. which oversees the insurance management in order to align with Islamic Shari'a. This is equivalent to the position of the board of commissioners in conventional insurance.

That difference Takaful and conventional insurance, Islamic insurance, Islamic insurance, general insurance, insurance. may add insight about which one would you choose, may provide benefits.

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