It’s good we observe a direct comparison between conventional insurance and Takaful in the following description:
Types of insurance
Here is the concept of conventional insurance as contained in the law No. 2 of the insurance business.
Insurance or coverage is an agreement between two parties or more, the penganggung adhered to the insured to receive insurance premium to reimburse the insured for loss, damage or loss of expected benefits or legal liability to third parties which may be suffered by the insured arising of an uncertain events or to provide a payment based on death or life of an insured person.
Then, the insurance business is classified as commercial or as well as the financial services industry. Activities or its business activities is collected on insurance premiums in a way that is used for the protection of the participants of the insurance for the benefit of family protection to participants of insurance against the possibility of losses due to an uncertain events or the life or death of a person.
In general, the type of insurance business “commercial” can be grouped into the following
Namely life insurance businesses that provide services in penanggunan risks associated with the life or death of an insured person.
Businesses that provide services in penganggulangan risk of damages, lost benefits and legal liability to third parties, which arise from perisiwa uncertain.
Basically, life insurance products can be categorized as follows
Term insurance is the insurance benefits paid by the insurance company if insurance participants unfortunate that resulted died during the agreement.
Whole life insurance
Olerh insurance benefits paid by the insurance company to the beneficiary if the participant dies.
Insurance benefits paid by the insurance company paid insurance companies to conduct ole if the participant died during the agreement or stay alive until the end of the agreement.
For comparison it is worth looking also regulations on Takaful as contained in the fatwa DSN NO. 21 / DSN-MUI / X / 2001 on insurance business.
Based on national sharia board fatwa No. 21 / DSN-MUI / X / 2001 on general guidelines that define Takaful Takaful (ta’min, Takaful, Tadhamun) is an effort to protect each other and mutual assistance between the number of people or party through investment in assets and or tabarru giving pattern returns to face certain risks through contract (engagement) in accordance with sharia.