Cooperative Insurance Model According to Islamic Law

Abstract

The cooperatives are a type of company that works by using the means of “mutual assistance, social solidarity and guarantee between its partners” and has a widespread practice area in our country and in the world. The practice of cooperatives in our country has a long history starting from the Ottoman period. Cooperatives are essentially regulated today, Law No. 1163. Cooperatives are also born out of the need for social solidarity like insurance companies, but differ from them in many ways. The fact that insurance companies are profit-oriented and that the collected funds belong entirely to the company, regardless of whether the provided risk has materialized or not in conventional insurance, brings up the search for a more equitable solution for those who need insurance. In this context, the cooperative insurance busi-ness in accordance with the principles of Islamic law stands out as a suitable model. Independent academic studies examining the legal nature of the cooperative in terms of Islamic law are not sufficient. Therefore, the aims of our study; to determine the legal nature of cooperatives in terms of Islamic law, to evaluate participation insurance through cooperatives in terms of Islamic Insurance and Islamic Law, and to make suggestions for a cooperative insurance structure that can be applied according to Islamic law. In this study, the nature and practice of today’s cooperative practices are presented by taking into consideration the cooperative principles accepted by the International Cooperatives Association (ICA), and the financial stability and incentive incentives in the country are evaluated by analyzing the difference from associations from capital companies. The opportunities offered by the platform cooperatives, which combines the traditional cooperative structure as a continuation of traditional cooperatives and the digital economy, are presented and the issue of cooperatives has been analyzed in terms of Islamic law. The basic principles of Islamic finance in accordance with the Islamic legal philosophy of a cooperative insurance system operating in accordance with Islamic law; consensual trade; compliance with the require-ments of the contracts; interest avoidance; avoiding gambling and extreme uncertainty; avoiding illicit goods and industries; It has been demonstrated that it can be constructed in accordance with the principles of avoiding mixed contracts containing forbidden. In addition, it has been emphasized that the takaful insurance model applied today is different from the capital company and the cooperative. In the cooperative insurance model, the contributions of the members are considered as compensation, not as donations as in ta-kaful. In this context, contributions of cooperative partners; a certain labor, a certain financial contribution and surety. In return for these contributions, they receive; It is the opportunity to meet their needs for their profession and livelihood under more favorable conditions, to have a positive income-expen-diture difference in direct proportion to their labor, and to receive a share in non-company transactions at the rate of their capital shares. Consequently cooperative insurance; it receives its reference from the Quran itself by means of taawun, coincidence and devotion. It is suitable to be constructed in a structure that complies with the basic rules of Islamic econo-mics such as consent-based trade between stakeholders, obeying the contra-ct, avoiding interest, avoiding gharar and gambling, protection haram goods and sectors. While conventional insurance companies are based on risk sel-ling, mutual/cooperative insurance is shared (risturned) among those included in the fund when the money increases in the fund at the end of the period based on the risk-benefit sharing basis. There is a profit-oriented operation in insurance companies, but in this system, the increasing part of the payment they make to the fund according to a certain risk account is shared among those included in the fund at the end of the period, that is, it is returned to them, if the loss is more It is being closed by the stakeholders. So, the risk/premium balance is achieved more equitably. The basis of the system is the principle of “al-harâc bi’d-dhaman” (balance of gain-compensation/benefaction-charge), which is one of the main rules of Islamic law. This system is more suitable for a solidarity and fair economic system. In order for the cooperative insurance model in accordance with Islamic law to be used safely in Muslim societies, it is important that the cooperative contract is prepared in accordance with the Islamic contract theory. This is seen as a model that can find application all over the world as a partnership structure suitable for the Islamic economic system.