Comparison Of Sharia Insurance And Conventional Insurance: A Study Of Islamic Law And Market Practice

Abstract

This research aims to analyze the comparison between sharia insurance and conventional insurance from various aspects, including concepts, basic principles, contract structure, risk management, and practical implementation in the field. Sharia insurance is based on Islamic principles, especially those related to the prohibition of riba (interest), gharar (uncertainty), and maysir (gambling), which have been replaced by the principles of mutual assistance (ta'awun) and profit sharing (mudharabah or musyarakah). Meanwhile, conventional insurance operates on commercial principles that focus on risk transfer with premium payments that are strictly regulated by the insurance company.