This is the Source of 4 Operational Cost of Sharia Insurance
This is the source of 4 operational cost of Sharia Insurance
Operate Sharia insurance business which is shaped like a limited liability company (PT), a source of operational costs be very decisive in the development and acceleration of the growth of the industry. Another case with the Islamic social insurance, mutual or cooperative, here the role of Government should be dominant especially in ditahap its inception subsidizes insurance.
Islamic social insurance are certainly not outrageously give priority to this aspect of the business or the acquisition of profit. But in prefer the benefits of most aspects to its members as the main function of Islamic insurance, that is, wataawanu alal birri wattaqwa ' mutual help in virtue and taqwa ‟.
1. For the Underwriting Surplus Results
According to Sula (2004:180) to outcome of underwriting surplus is for the results obtained from a surplus of underwriting, which are divided proportionally between the participants (shohibul Mall) and Manager (mudhorib) with a ratio that has been set before. Whereas, for products of non saving in life insurance, underwriting surplus is also a source of operational costs. Underwriting surplus obtained from a collection of Fund participants who invested, then reduced the costs or the burden of such reinsurance and insurance claims. The surplus then divided the results between participants and companies. Part of this is taken as a company operating expenses before becoming the company's profit.
According to Richard Bailey in Sula (183:2004), the purpose of underwriting to make estimates of risk and determination of the prospective insured into risk groups, the objectives of the company are underwriting approval and publish a policy:
Fair for the customer (Equitable to The Client):
One of the basic principle of insurance is that each insured pay premiums proportional to the risk insured against the company's reserves. With the receipt of the application of life insurance, the company shall assign a level of risk and premium burden should be equitably the risk.
Can be sold by the agent (deliverable by the agent):
The buyer makes the final decision whether a particular insurance policy is acceptable. If the buyer decides not to buy the insurance policy if the dealer trying to sell such policies, saying that the policy could not be sold (undeliverable) or not purchased (not taken). One of the reasons for a policy which is not purchased is due to unfavorable underwriting decisions with the result of the imposition of a premium to higher anticipation. For example, if the underwriter has decided to load the premiums are higher than the normal premium for one closure or limit the sum assured or an extra benefit or rider type is desired, then the prospective insured may reject the policy..
As for the conditions of admissibility of an insurance policy are:
the policy must provide benefits that meet the needs of the buyer.
the premiums set by the policy must be within the limits of the financial ability of the buyer.
the premiums charged for insurance should compete with the market.
3. Profitable Company (profitable to the company)
Underwriter must make decisions that benefit the company. All insurance companies, whether it be a limited liability company, life insurance together, or fraternal twins, ask a healthy underwriting to assure a profitable financial results. Limited liability company paying dividends to shareholders. And in some cases, asuradur (the insurer) fraternal or mutual companies paying dividends to policyholders (participants).
2. For Hasi Investment
According to Sula (2004:180) to outcome of the investment is for the results obtained proportionally based on the results for the ratio has been determined, either from the results of investment and savings accounts as well as participants from the tabarru ' Fund account. After the Fund participant is payable, and accrued in total Fund participants, then invested. Profit from investments then conducted for the results between participants and managers or insurance companies.
3. Shareholders ' Funds
Shareholder funds are funds prepared by the shareholders as capital for companies, setor either in the early stages of the establishment of the company as well as the addition of funds after the company goes along investment results over those funds or by in other words, the accumulated capital plus earnings deposited by shareholders.
4. Loading (Cost Contribution)
According to Sula (2004:181) loading is the contribution charges that are charged to participants, who are normally on conventional insurance premium is taken from the first and second years. On some Islamic insurance in Indonesia, the loading imposed amounting to approximately 25 percent of the first year's premium over the knowledge of the participants and especially allocated for the cost of a Commission agent. As for the number of contributions taken passed away to each company's policy with regard to aspects of Justice and aspects of the market.
Shariah-compliant insurance companies like Syarikat Takaful in Malaysia, and most Islamic insurance in Indonesia such as Shariah-compliant Insurance Mubarokah not loading charge to participants for reasons contrary to rule syara ‟. While some others such as Family Takaful Shariah, MAA and other Shariah-compliant insurance, Shariah Supervisory Board (DPS) allow loading (for example a 3 percent) from the first year's premium, all done in a transparent and informed consent participants of the takaful contract early. It is considered not contrary to norms syara ‟.
According to Sula (2004:181) understanding the cost of loading on Sharia insurance is contribution charges that are taken from a small percentage of participants (premium) contributions the first year, for example, 20%-30% of the premium the first year. These costs are mainly allocated to Commission agents and billing costs (incasso).