Hybrid Contract on Sharia Life Insurance in Indonesia

Abstract

(Abstract) Akad (contract) is a central point of a contract and is the determinant of a contract whether it is valid or not. If a contract is considered valid, then it will lead to the reciprocal relationship of rights and obligations between the parties. In Islamic law, akad is divided into two types, akad tijari (profit oriented) and akad tabarru' (non-profit oriented). In line with the improvement of society's needs and the Islamic economic institutions, a new concept of akad is introduced. A hybrid contract which involves the combination of contract in a transaction becomes one of the alternative options in sharia insurance. This is because there is a minimum requirement of two akad in every single transaction, whether it is bilateral or unilateral, and both are applied together. The aim of this paper is to examine the permissibility of hybrid contract in Shariah insurance in Indonesia. In analyzing the contract, the normative legal research method is applied by using secondary data. The studies showed that the shariah insurance is applying aqad tabarru' and permissible according to Shariah.