Conventional and Syariah Insurance difference for families

Many people are still not so understand the difference of 

Islamic and conventional insurance, and choose blindly. For example, some presume that Sharia insurance certainly is good, or vice versa, without really considering every aspect of it. As a result, manyremorseful because the product selected was not able to give the best benefits for the protection of the family.

If you are really serious about choosing the best protection, but are still confused by the difference of Islamic and conventional insurance, you could see it from some important aspects that distinguish the two forms of insurance.

5 aspects of Sharia Insurance and conventional Differences

When comparing between Islamic and conventionalinsurance, it's not just a matter of "the one set forth in Islamic law, that one does." There are many different things that make both in terms of service and protection system. Here are a few aspects that are instrumental in creating Islamic insurance and conventional differences in life insurance family:

Fund management system

In Islamic and conventional insurance system, focus and methods of the management of the Fund is a little different. Conventional insurance has set the quantity of premium and protection from the beginning, and the system worked so that companies benefit as fully as possible. In the Shariah, aspects of insurance fund management tends to be more transparent, because the system is based on Islam emphasizes the clarity of the contract.

Binding agreement

Although both are regulated in the law on insurance, Shariah-compliant insurance basing his promises on signing the contract called hikah. Meanwhile, conventional insurance basing his Covenanton a regular system of buying and selling insurancein the service industry.

Risk management system

The fundamental difference between Islamic familylife insurance and conventional is how risk is managed. Insurance risk transfer has a conventional, where the risk faced by the owner of the policy is divided to two along with specific policies after the company paid. While in Islamic insurance, the risk is that there is "divided" into several Parties at once via the fundraiser grants.

The system of ownership of insurance funds

Conventional insurance have your money after youpay a premium, in Exchange for regular financial protection that is given when you have an accident. However, in the Islamic insurance, money that you pay arguably only managed by the company. In fact, the status of the funds you pay is considered jointly owned funds.

Profit sharing system

When conventional insurance company benefited financially, the advantage of course will fall into the hands of the company. However, in the Islamic insurance, valid for the results system profit results which belong to the holder of the insurance policy. This is one of the most outstanding aspects in conventional and syariah insurance differences the most widely understood.

Operational supervision system

In the Islamic insurance, the thing that stands out isthe existence of a system of supervision by the national Shariah Board, the agency that is under the MUI. This is to ensure that Sharia insurance agency operations remain upheld the Islamic principle that required in it. In addition to the oversight of the system, it is also to ensure that the money invested in this program is lawful.

The Division of funds not used

If you never pull the claim during the coverage period, conventional insurance companies often do not refund your premium. However, in the Islamic insurance, money can still be returned although not entirely (since there is little cost party insurance companies taken as a symbol of faith transactions).

See the difference a conventional and syariah insurance is pretty basic, it's good You examine well before deciding to choose the right insurance for your family.