DEFINITION AND HISTORY OF INSURANCE

DEFINITION AND HISTORY OF INSURANCE
The word comes from the Dutch Insurance 'assurantie' in Dutch law called Verzekering which means the coverage. Then arise from the terminology assurantie assuradeur term for the insurer and the insured geassureerde.
Many definitions of insurance (conventional). According to Robert I. Mehr insurance is a means to reduce risk by combining a number of units at risk for individual losses collectively predictable. Losses can be predicted tersbut then divided and distributed proportionately among all the units in the combination.
Mark R. Greene defines insurance as the economic institutions that reduce risk by combining under one management, and group objects in a condition so that the huge losses that occur suffered by a group that was predictable within a smaller scope.
While the C Arthur Williams Jr.. and Richard M. Heins look at insurance from two points of view. The first is the 'insurance is protection against financial risk by the insurer' while the second is the 'insurance is a tool where the risk of two or more persons or companies incorporated through a certain premium contribution or defined as funds used to pay claims'.
In Arabic literature (Islamic jurisprudence) of insurance known as 'al-takaful' and 'al-tadhammun'. Literally it means al-takaful coverage is reciprocated or bear one another, while al-tadhammun solidarity means to bear one another or the rights / obligations are reciprocated '. Another title is al-ta'min who have the meanings given protection, peace, security and freedom from fear.
Menta'minkan something, it means someone is paying / menyerrahkan mortgage money to so that he or his heirs get the amount of money as agreed upon or to get change for a lost treasure, said to be 'a person bond or mengansuransikan his life, his home or his car'.
According to Ahmad Mustafa Zarqa meaning of the term insurance is an event. The methodology and the picture may vary but in essence, insurance is a way or method to maintain people in avoiding the risk (threat of) the danger that will happen in his life, in the course of events in his life or economic activity.
In the book 'Al-Ta'min Aqdu Mauqifu Al-Sharia wa Al-Islamiyya minhu', al-Zarqa also said that the insurance system is to understand the scholars' law (sharia) is a system that aims tadhammun ta'awun and to cover losses events or disasters. This task is distributed to a group of insured, by providing a replacement to the affected people. The substitute is taken from a collection of their premiums. They (the scholars' Islamic experts) say that in the determination of all laws relating to social and economic life. Islam aims for a society to live based on the principle of mutual help saliing and ensure the implementation of the rights and obligations.
National Shariah Council of Indonesian Ulemas Council (MUI-control) in his fatwa about the Takaful general guidelines, provides a definition of insurance. According to him, Islamic insurance (ta'min, takaful and tadhammun) is an attempt to protect each other and mutual help among a number of the person / party through investment in assets or tabarru 'which gives pattern of return to mengahdapi certain risks through contract (engagement) Shariah compliance.
From the definition above, the Islamic insurance premiums are a number of funds paid by the participants who made up a savings fund and tabarru '. Fund is a fund of savings deposits of participant Takaful (life insurance) and will get the allocation for the (al-Mudhorobah) of net investment income earned each year. Savings and its allocation of funds for the results will be returned to the participant if the participant concerned shall submit a claim, either in the form of cash or value Kalim insurance benefit claims. Meanwhile, tabarru 'is the virtue of charity or funds provided by the participants diikhlaskan insurance and if at any time will be used to pay Kalim or insurance benefits (life and general insurance).
Actually, the concept of Islamic insurance is not new, because there has been since the days of Aqilah Rasululloh called. In fact, according to Thomas Patrick in his Dictionary of Islam, it was customary Arab tribes since ancient times that if there is one member of the tribe who were killed by members of another tribe, the heir of the victim will be paid the blood money (diyat) in compensation by relatives closest to the killer. Kin killer called Aqilah, must pay the blood money on behalf of the killer.
According to Dr. Muhammad Muhsin Khan, said Aqilah means Asobah showing the relationship with the father's killer. Therefore, the main idea of ​​Aqilah is the ancient Arab tribes must be prepared to make financial contributions on behalf of the murderer to pay the heirs of victims. Readiness to pay a financial contribution equal to the premiums of insurance practice. Meanwhile, the compensation paid by al-Aqilah may be equal to the sum insured in the insurance practice now. Because, it is a form of financial protection for beneficiaries against the unexpected death of the victim.
In further development, said Sheikh Ibn Hajar in Fath al-Asqalani al-Barri, with the advent of Islam, the Prophet received by Aqilah system became part of Islamic law. Based on the hadith of the Prophet in pertingkaian between two women of the tribe Huzail. Abu Hanifah said that once the two women of the tribe Huzail fight. One of them struck the other with stones, resulting in the death of the woman and her newborn baby in her womb. Heir of the victim brought the incident to the court. Prophet Muhammad gave the decision that the compensation for killing a baby is to free a slave man or woman, while the compensation for the killing of women is blood money (diyat) to be paid by Aqilah (his father's side) of the accused.
In the Arabic language, among meaning is al-aql al-Aqil fine and was fine. In some cases, Islam imposes a fine of insurance to another person (not a violation). However, in the al-Diyah, the cause is not the intent, but by mistake. If al-Diyah was caused deliberately, then there is no insurance that this responsibility. Therefore, required that the damage was not caused deliberately. In the matter of al-Diyah, the scholars said, "must pay a penalty against most of the damage caused by errors such as murder or wounding by mistake or negligence '.
Another term often used is the takaful Islamic insurance. The word comes from the takaful takafala-yatakafalu, which etymologically means guarantee or bear one another. The word takaful is not actually found in the Koran. However, there are some words that seakar with the word, as in verse 40 sura Thahaa "Idz tamsyi ukhtuha fataquulu it adullukum 'ala mayyak fuluhu (when the sister of Moses went to Pharaoh and said,' May I show you the people who care ' ) ". Pengerrtian keep humans in this case is the infant Moses.
Takaful is a mutual in the sense muamalah assume that risk amongst people with one another to the risk to another insurer. each bear this risk on the basis of mutual help in a good way to spend each tabarru 'money worship, charity, charity is intended to bear the risk. Takful in this sense according to the al-Quran, "And please you in mengerrjakan menolonglah goodness and piety, and do please help in sin and transgression" (al-Maidah: 2). Takaful muamalah above in the sense founded on three basic principles;
A. Each other accountable.
Many hadith of the Prophet, as narrated by Bukhari and Muslim, which teaches that the relationship of people who believe in the fabric of a sense of affection for each other is like one body. When one part of body aches, then the whole body will also feel the pain.
2. Work together and help each other.
Allah swt. Ordered that the values ​​upheld in the life of mutual help in righteousness and piety, as He says that means "And please you in mengerrjakan menolonglah goodness and piety, and do please help in sin and transgression". The Prophet also taught that the person who needs his brothers would alleviate the need alleviated by Allah. 'Allah will help His servants while he was helping his brother'.
3. Protect each other.
Hadith of the Prophet taught that faith is not perfect someone who can sleep soundly with peru empty, while its neighbors suffer from hunger. "The Muslim is one who gives salvation to their fellow Muslims from disturbance words and deeds".

Tabarru 'comes from the word-a yatabarrau tabarra tabarruan, meaning donations, grants, benevolence or charity. People who contribute so-called mutabarri '(generous). Tabarru a voluntary gift of one person to another, without compensation, which resulted in the transfer of ownership of the asset to a given provider. Jumhur tabarru scholars define 'the' contract which resulted in property ownership, without compensation, a person in a state of life to others voluntarily. "
Donate some property for the purpose of helping someone in the face of adversity is highly recommended in Islam. Donors (mutabarri ') who are sincere will get rewarded with a very large, as the word of Allah Almighty "Parable of charitable people who spend their wealth for Allah, the streets are similar to the seed that grows seven ears. In each there are a hundred grains butlir. Magnifies Allah (reward) for whom He will. And the vast gifts of Allah, the Knower. " (Al-Baqarah: 261)
Height of the dignity of the person who helped his brothers who has had difficulties described in the hadith of the Prophet "He who has met the basic need of his brother, Allah will fulfill his business".
Sheikh Hussain Hamid Hisan describe tabarru contract-agreement 'as a way to bring Islam disyari'atkan ta'awun and tadhammun. In tabarru contract, and charity to help people who do not intend to make a profit and does not require replacement as the reward of what he gave. For this reason, the contract-tabarru contract is permissible. The statute allowed for if the goods / tabarru something that is lost or damaged the hands of people who were given the charity (with or gharar because jahalah or for other reasons), then it will not hurt him. Because, the person receiving the gift / donation does not provide a replacement in exchange for donations it receives.

DIFFERENCES CONVENTIONAL AND ISLAMIC INSURANCE
A. CONCEPT.
Islamic insurance concept is a concept where there is mutual amongst the participants assume the risk. Thus, between each other to be the insurer of the risks that arise. Each bear this risk on the basis of mutual help in a good way to spend their funds tabarru or virtues (charity) which is intended to bear the risk. Takaful in this sense according to al-Quran surah al-Maidah: 2 "And please you in mengerrjakan menolonglah goodness and piety, and do please help in sin and transgression".
Takaful system is ta'awun attitude that has been arranged with a very neat system, among a large number of people, everything has been prepared in anticipation of an event. If some of them experiencing the event, so all help each other in the face of that event with a little gift (donation), they can cover the losses suffered by the person who suffered from it. Thus, Islamic insurance is a highly commendable ta'awun, that do help each other in righteousness and piety.
While the concept of conventional insurance as defined in the Law On Insurance Business, said "Insurance is an agreement between two or more parties, which resulted in self-insurer to the insured to receive the insurance premium, to provide reimbursement to the insured for loss, damage or loss of expected benefits or legal liability to third parties that may be suffered by the insured, arising out of an uncertain event or to provide a payment based on death or life of an insured person ".
Thus, it can be said that the contract of insurance related to something that is not inevitable. And when it happens, does not necessarily result in liability for the insurer to provide compensation if the terms of the agreement are not met by the insured. The relationship of debtor and creditor in a new insurance agreement come about when there was an agreement about the amount of compensation (for insurance).
Thus, the concept of conventional insurance is a concept to reduce the risk of an individual or an institution (insured) to the insurance company (insurer) through an agreement (contract). The insured to pay a sum of money as a sign of commitment and the insurer promises to pay compensation Had an event as agreed in the insurance contract (policy).

2. ORIGINS
Al-Diyah 'ala al-Aqilah is a term that is quite famous in the books of fiqh, which is considered by some scholars a forerunner of the concept of Takaful. Aqilah al-Arab tribes from habits long before Islam came (571 M). al-Aqilah even set out in the world's first constitution, which was made directly by the Prophet, known as the Constitution of Medina (622 AD). Aqilah al-Arab tribes has become a habit since the ancient times. That is, if one member of the tribe were killed by members of another tribe, the heir to the victim will be paid the blood money (al-Diyah) in compensation by the nearest relatives of the killer. Next of kin of the killer Aqilah.
Ibn Hajar al-Barri Fathul Asqalani in his book says that in later development, with the advent of Islam, passed by the Rasululloh Aqilah system became part of Islamic law. This argument, says al-Asqalani, can be seen in the hadith of the Prophet when a quarrel between two women of the tribe Huzail.
While conventional insurance comes from the habit of Babylon 4000-3000 BC, known as Hammurabi Testament, collected by the king of Babylon in 282 regulations (Code of Hammurabi) in the year 2250 BC. Later evolved into the practice of bottomry agreements (bottomry Contract) around 1600-1000 BC the Greeks practiced in the community.
Further developing the practice of this Agreement to Rome, India, Italy, Europe and America. In line with the development of trade and industry in the UK in 1668 AD at the London Coffee House Lloyd's of London stands the forerunner to control every aspect of conventional insurance are scattered around the world as we know it today.

3. SOURCES OF LAW.
Sources of sharia law is Islamic law, while the sources of Islamic sharia law in the al-Quran, Sunnah, Ijma ', Fatwa friend, Qiyas, istihsan,' urf Tradition and Mashalih mursalah. Al-Quran and the Prophet's sunnah or practice is a major source of Islamic law. Therefore, in establishing the principles and practices and operations of Islamic insurance, which has always been a reference parameter is the Islamic sharia. There are about 500 verses in the Koran that talk about the law, there are a number of verses in the Koran Allah who determines validitasi insurance contract. This is a binding promise to put both penanngung and borne by the general principle of the agreement. Then also consists of elements of disaster mitigation and the provision of material and ensure their safety at risk and unexpected dangers and guarantee them a comfortable life.
All elements of the insurance agreement is approved by the principles of the Koran. Therefore, the al-Quran is the guiding principles in providing a justification that is the instrument for application to humans so that their contract has succeeded in duinia and the hereafter.
Whereas if sharia law is based on the source of the word of Allah and the Sunnah of the Prophet, then the conventional insurance didasarkankan legal sources on the human mind and culture. Modus operandi on Takaful should be in line with Islamic principles, while in conventional insurance modus operandi is based on positive law and natural.
On a conventional insurance contract is based on the general principles of the agreement, but there are some aspects that distinguish a contract of insurance with another insurer. Most of the commercial business contracts are bilateral in nature of the law. The parties involved in a fair burden to carry out the contract.
Instead, the insurance policy is a unilateral agreement. Because the insurance contract shall be binding only on pengasuransian to satisfy claims incurred while the insured is not legally required to continue payment of premiums after the first premium is paid. But for purposes of claims for losses incurred must continue to pay premiums.

4. NET FROM MAISYIR, GHARAR and RIBA.
Both Takaful life insurance (life) and general insurance (loss) has been freed from the things forbidden by the clergy that is cleaner than the maisyir, gahrar and usury. It can be seen in the operating system is done, where the mechanism can separate the management of funds between the accounts of participants with account funds tabarru. The purpose of this separation is to avoid the mixing of funds. Thus, Islamic insurance (life insurance) can be spared from maisyir and gharar. The problem in both the practice of usury and soul loss can dieleminir using Islamic instruments as a substitute usury system, misalnyamudharabah, wadiah, attorney, and so forth.
Azhar Bashir Ahmad said that in Takaful insurance (Islamic insurance) is really going on is mutually responsible, aids to help and protect each other among the participants themselves. Islamic insurance company given the trust (trust) by the participants to manage the premium (contribution) of participants, to develop the halal way, avoid the unlawful practices of Allah and give compensation to the unfortunate under the agreement has been agreed.
While in conventional insurance according to the council in session exactly hisba-12 dated June 26, 1996, gives the conclusion that conventional insurance law as follows:
• All existing conventional insurance today contains elements of gharar, gambling and usury.
• Sedaangkan gharar, gambling and usury in Islam is haraam
• The takaful, could serve as a replacement alternative (Islamic insurance) with a record of takaful must continue working to improve what had happened.
NU National Conference 21-25 January 1992 also decided as follows:
• social insurance held by the government still allowed for consideration maslahah.
• Insurance losses by these terms is forced, such as bank collateral, enter a government requirement for akspor-import insurance.
• Life insurance is haraam, but to fulfill the provisions of these Terms, for example there are elements of saving, not scorch funds, invested in a way that is not kosher.

5. SHARIA SUPERVISORY BOARD.
One of the differences from conventional insurance to Takaful that there is such thing as Sharia Supervisory Board (SSB), which is an integral part of a national Islamic council (DSN-MUI).
The main role of the supervisory board of Islamic scholars is overseeing the daily operations Islamic financial institutions like banks, bonds, capital markets, leasing and so on, so always in accordance with the provisions of sharia. This is because transactions prevailing in the Islamic financial institutions are very particular when compared with the same institution (conventional).
Sharia supervisory board functions are (1) conduct periodic surveillance in Islamic financial institutions under its supervision, (2) shall submit proposals to the development of Islamic financial institutions and led the agency of the National Sharia Council, (3) reported the development of products and operations of Islamic financial institutions are supervised to the DSN at least two times in one fiscal year.
If the conventional insurance no sharia supervisory board (SSB). Therefore, there is no supervision in matters relating to violation of Islamic sharia, especially as related to the principles muamalah-contract and contract in the insurance transaction. However, it does not mean that conventional insurance is done carelessly and without order, because the insurance industry has been tied up by insurance principles agreed internationally and has run hundreds of years. In each State provided for in laws and regulations to safeguard the rights of the insured and the insurer, as well as ways in the event of dispute settlement.

6. Contract
Contract used in the Islamic insurance is an agreement or contract tijarah and tabarru '. Tijarah contract in question is all the forms of contract are carried out for commercial purposes such as mudaraba, wadiah, attorney, and so forth. While all forms of contract tabarru is conducted with the aim of kindness and mutual help not only for commercial purposes.
In the contract tabarru, mutabrri give charity in order to help someone in distress are strongly recommended in Islamic Law. A willing donor would get rewarded with a big.
If the contract is an agreement on Islamic insurance or tijarah tabarru then happens to the insurance contract is an agreement mu'awadhah conventional, ie, an agreement where the parties give to the other party entitled to receive reimbursement from the party who gave. In contrast to tabarru, where the member voluntarily giving something without wanting to receive any of the parties who receive from Allah except good. Mu'awadhah contract called for each of the two sides are berakad, the insurer and the insured obtain a replacement of what has been given. Insurers get insurance premiums in lieu of the promised sum payment. While the insured obtaining insurance money in case of catastrophic events or as a substitute that has been paid.
Furthermore Hisan Hamid Hussain said that conventional insurance contract is an agreement gharar, because each of the two parties, the insurer and paid at the time of carrying out the contract did not know the amount of money that he will provide and the amount it would take. Because, it tergangtung to happen and whether the insured event. And it's only Allah who knows.
Another feature of the conventional insurance contract is an agreement mulzim. Mulzim Agreement means the agreement that must be undertaken by both parties. Both of these obligations is the obligation of the insured to pay insurance premiums and liability insurance penanngung pay if the insured event occurs.
In the text that defines the obligations of the insured's insurance explained that an obligation that is certain, since carrying out the contract is executed, even though premiums are payments on time, every month or every year. While liability is a liability insurer that has not been or are still possible, sometimes there and sometimes not, as long as accompanied by the occurrence of events. In a sense, there will be no liability is or will not be implemented without incident peeristiwa insured.

7. TRANSFER OF RISK SHARING OF RISK VS.
Process participants and corporate relationships in the mechanism of Takaful coverage on the sharing of risk 'to each other at risk'. In the event of disaster, then all the Takaful participants to bear one another. Thus, there was no transfer of risk from keperusahaan participants, because in practice the contribution (premium) paid by the participant does not occur is called the transfer of funds, status of ownership of these funds remain attached to the participants as shahibul mall. This is where the word of Allah implemented in the practice of insurance, for example, paragraph 2 letter al-Maidah are ordered to help each other in a positive action.
Insurance Participants are bound by contract (agreement) to help each other, through the so-called Islamic instrument tabarru funds 'fund of virtue'. Contribution of each issue, which amount to borrow a table of death (mortality tables) for life insurance and for insurance losses based on statistical counting losses (loss statistics), for example, using the theory of probability (probability), theories have a tendency (measures of central tendeny) and so on.
While in conventional insurance, it is the transfer of risk 'risk transfer'. Because that's really the essence and the main purpose of insurance. Salim Abbas said that the purpose of insurance (conventional) is to transfer risk (transfer of risk) individuals to the insurance company. Therefore, the purpose of coverage, especially to reduce the risks we encounter in society.
In view of the economy, insurance is a method to reduce the risk by moving the (transference of risk) and combines the existence of uncertainty of financial loss (financial). So, based on economic concepts, insurance with respect to removal and recombining risk.