Enhancing Mutual Assistance: An Analysis of Sharia Insurance Fund Separation in Comparison to Conventional Insurance

Separation of funds in sharia insurance adheres to the main principle mutual assistance (ta'awun), which means that each participant must have intention help other. The application concept separation emphasizes position tabarru may only be used for needs policyholders while originating from shareholder component (ujrah) can companies. This study aims determine Islamic is an advantage compared conventional insurance. A qualitative method was chosen this research, companies Indonesia as research object. Research findings state divided into tabaru (mutual assistance) and ujrah accordance with fund theory. Efforts invest higher levels been made by company, but low investment returns mean profit sharing between participants company lower, losses will still borne participants. Besides that, claims on do not need use their reserve cover high level claims.