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

Dede Abdul Fatah () and Inas Afifah Zahra
Additional contact information
Dede Abdul Fatah: Politeknik Negeri Jakarta
Inas Afifah Zahra: Politeknik Negeri Jakarta

A chapter in Proceedings of the 1st International Conference of Economics, Management, Accounting, and Business Digital (ICEMAB 2024), 2024, pp 90-97 from Springer

Abstract: 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.

Keywords: Insurance Brocker; Sharia Principles; Hybrid Contract; Fatwa DSN-MUI (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-614-7_13

Ordering information: This item can be ordered from
http://www.springer.com/9789464636147

DOI: 10.2991/978-94-6463-614-7_13

Access Statistics for this chapter

More chapters in Advances in Economics, Business and Management Research from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().