Insurance meaning and types

 

Insurance meaning and types

Insurance is a way to avoid financial loss. It is a type of risk management, mainly used to avoid the risk of an emergency or uncertain loss. A company that provides insurance is known as an insurance company, insurance company, insurance carrier, or underwriter. The person or organization that buys the insurance is known as the insurer or insurer.

Insurance meaning and types

Terminological definition

The name of the agreement between the insured parties in which one party (the insurance company) will pay a fixed amount to the other party (insurer) in case of unknown loss and in return the other party will pay a fixed amount in installments. Promises in the form of (premium) unless there is an unknown loss.

Start of insurance

o Insurance was started by Italian merchants in 1400.

The same method was adopted in England in the seventeenth century to help the sick.

o In the eighteenth century, merchants formed their own associations, and any member of the business community involved in an accident was assisted by a mutual fund.

However, the oldest marine insurance in England is in 1547.

Types of insurance

The following are the popular types.

o Life insurance

o Property insurance

O Organ insurance

o Liability insurance (such as children's education and marriage, etc.)

o Insurance of valuable papers and certificates

Insurance procedure

If a person wants to ensure his life, the procedure is that the doctor of the insurance company estimates his life that this person is physically able to live for such a period of time, for example, Twenty years. Once he is satisfied, an agreement is reached between the insurance company and the insurer. The insured pays the insurance company to the insurance company in installments, the amount of which it wants to insure in annual installments. After a certain period of time, this amount is returned to him or his family under certain conditions, and some other amount along with the original amount is given at a fixed rate percentage. This amount is called a bonus.

 The following are the arguments in favor of insurance.

o In this way human wealth is protected and increased.

o The world is a hotbed of accidents. Harm can be remunerated in case of a mishap.

o It is difficult for a poor person to save money in any situation. In the case of insurance policy, a small amount is used to help orphans and widows and to help them in difficult times.

o It is a service-oriented humanitarian system that aims to help the poor and needy.

o Islamic law places great emphasis on cooperation and collaboration in collective life, so insurance is a legal and organized form of cooperation and collaboration.

o After the death of a person, financial assistance is provided to his survivors.

o In the event of an accident, human capital is protected.

Applications to the existing insurance system:

o The insurance company invests in the principle of participation and speculation.

o The person who submits two or three installments and does not deposit the remaining installments, his money should be refunded however the expenses should be deducted from it and if the insurance boulder dies at any stage after payment of any installment According to. The entire amount should be paid to the Shariah heirs of the deceased as it is today.

o Insurance companies should be declared shareholders by the insurance company and their capital should be declared as shares and the average profit of their shares should be given to them. However, the company can form its own commission.

o The government should take over the insurance companies.

Important Note:

Whether the insurance is for life or property or for property and business, because there is no direct interest, gambling, etc. and the insurance holder does not enter into any agreement with the company in which a situation arises, then our This business is actually profitable. And it is permissible. Let's see where these companies invest their premium money. Obviously, this investment can be made in legitimate projects according to principles, such as agriculture, trade, industry, etc., and also in the fields of interest, gambling, and pornography, which is haraam. It is now up to the companies concerned to distinguish between legitimate and illegitimate. Protection holders are not legitimately engaged with any criminal behavior.

Emergency life insurance is valid:

Here are a few proposals on the most proficient method to look or get an arrangement for classical things.

Insurance meaning and types

Almost all banking business in the world is run on interest. Government, semi-government or private companies, institutions or individuals raise funds from the people. To encourage them, they promise rewards, bonuses, and big money in case of accidents, by collecting money from people, they give the same amount to big businessmen or industrialists at higher interest rates for business. ۔ From the interest earned there, they also cover their expenses and pay the balance to the account holders in the name of the balance. Clearly, every one of these organizations depends on the guideline of interest۔

If insurance or other institutions invest the capital of the people in the fields of industry, trade, and agriculture, etc., on the Islamic principles of profit and loss, then the profit will be more than the interest and the provision will be more than that. The agents of our rulers openly declare war on God and the Prophet (peace and blessings of Allaah be upon him) and take this capital on interest and run it on interest and Muslims are pressured to open the haraam because insurance Holders do not pay their money on interest. Insurance, insurance, etc. is legal in every way. However, the fact that companies transfer these funds at interest has both possibilities. First, giving money based on the Shari'a principles of profit and loss sharing in industry and trade, agriculture, and defense. This is undoubtedly true or necessary. This is a very good Islamic scheme but the companies will not follow it as their expenses cannot be met. Therefore, they can successfully run this system according to the principles of Modaraba and Musharaka. However, insurance is legal for the public. If we have any writing against it, it should be considered canceled. We refer to it. Otherwise, it is haraam for companies to distribute this money to big moneylenders, big businessmen, industrialists, or landlords, but the insurance holders have not paid their money on interest, so insurance is legal for them in every way. In short, you can insure yourself, your car, your home, your shop, your crop, your business, and so on.

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