Insurance Brokers Based on Sharia Principles: A Consideration Fatwa of the National Sharia Council of Majelis Ulama Indonesia (DSN-MUI) Through a Hybrid Contract

DOI

10.2991/978-94-6463-614-7_13How to use a DOI?

Keywords

Insurance Brocker; Sharia Principles; Hybrid Contract; Fatwa DSN-MUI

Abstract

The exploration of insurance brokers operating under Sharia principles is paramount for advancing Islamic finance. This paper delves into this critical area, focusing on the Fatwa DSN-MUI No. 128/DSN-MUI/VII/2019. By examining the application of a hybrid contract approach in Sharia-compliant insurance brokerage, the study highlights the integration of Islamic economic principles such as mutual assistance (ta’awun) and risk-sharing (tabarru’). Analyzing the legal and operational frameworks established by the National Sharia Council - Indonesian Ulema Council (DSN-MUI), this paper aims to analyze how the DSN-MUI fatwa on insurance brokerage products is implemented in the insurance sector. The findings suggest that there may be room for improvement in applying the DSN-MUI fatwa to insurance brokerage products. This is evidenced by some agreement clauses diverging from the DSN-MUI fatwa, potentially leading to challenges in the agreement’s enforceability. This research contributes to the broader discourse on Islamic finance by offering insights into the practical challenges and opportunities faced by Sharia-compliant insurance brokers in Indonesia.

Copyright

© 2024 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Dede Abdul Fatah
AU  - Inas Afifah Zahra
PY  - 2024
DA  - 2024/12/23
TI  - Insurance Brokers Based on Sharia Principles: A Consideration Fatwa of the National Sharia Council of Majelis Ulama Indonesia (DSN-MUI) Through a Hybrid Contract
BT  - Proceedings of the 1st International Conference of Economics, Management, Accounting, and Business Digital (ICEMAB 2024)
PB  - Atlantis Press
SP  - 90
EP  - 97
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-614-7_13
DO  - 10.2991/978-94-6463-614-7_13
ID  - Fatah2024
ER  -