The Insurance Concept on Collateral Object of Sharia Banking Financing

Abstract

This theme is important to introduce the new concept of sharia insurance which is special use a collateral of sharia banking financing as its object. The methods used to write this article is critical content analysis that base on general concept of sharia insurance derived from fatwa of DSN-MUI and the regulations concerned in Indonesia. From the results of the analysis the authors concluded that there are at least three basic contracts used in the insurance concept on collateral object of banking financing, namely contract of grant (hibah), contract of representative service (wakâlah bil ‘ujrah), and debt contract (qardh) which all underlie the relationship between fellow participants or between participants and insurance companies. Through the implementation of the sharia contracts, we hope that this insurance concept will become more Islamic.