Sharia Insurance Premium Payment Method
How to pay an insurance premium of Sharia - Sharia Insurance is a risk management arrangements that comply with Sharia, please help mutually involving participants and operators. Sharia comes from the stipulations in the Qur'an and as-Sunnah.
Elements of Sharia insurance premium consists of:
- Elements of tabarru ' and saving (for insurance)
- Tabarru ' elements (for insurance and term insurance)
Elements of tabarru ' on the soul, the calculations taken from the tables of mortality (life expectancy), the magnitude depending on the age and the period of the agreement. The higher the age and increasingly long times of his Covenant, the greater the value of tabarru'nya. The magnitude of the life insurance premiums (tabarru ') are on the range of 0.75 to 12 percent. Read: Principles of Insurance and Elements of Insurance Contract
Some scholars of Sharia insurance such as m. Billah mentions this term with premium contribution (contribution). Billah dodged tabarru ' because in practice, the term insurance products in life insurance and all products in the insurance loss there for the results (mud} ar < abaad) If no claims occur, while the tabarru ' according to most Islamic scholars not justified hope of return.
Premium on Sharia insurance also called net premium because it consists only of mortality (life expectancy), and in it there is no loading elements (Commission agents, administrative costs, and others). It also does not contain elements of interest as in conventional insurance. Read: 7 Elements of Insurance Contract
Abbas Salim said that the premium paid by buyers of insurance depends on the nature of the contract has been made between the insurance companies with the insured.
1. Premium increases (natural premium-increasing premium), the premium payment is the longer growing bigger. At the time of the commencement of the year, insurance premiums are paid low, but after that, the longer the high growing from year to year. Payment of premiums increase every year because:
-The age of the policyholder accrue long increased ride (old), it means that the risk increases as well.
-The possibility to die more quickly.
2. equitable Premiums (premium level), on the level of premium is the magnitude of the premiums paid by policyholders for every year (evenly). Indeed in the years of the commencement of payment of the premiums, bigger than on natural premium, while in the following years, the payment of premiums is lower when compared with the increasing premium.