Does Indonesian Ulama Council (IUC) Has Manipulated the Islamic Law by Implementing Hybrid Contract in Islamic Insurance (Ta’mîn)?

Abstract

It is a fact that insurance (ta’mîn) has become one of products of financial institution promising benefit guarantee for human. Nevertheless presence of insurance has provoked debate among contemporary Muslim scholars related to its validity. Some of them believe that insurance is absolutely forbidden due to the element of gambling and others allow it because there is benefit (al-maslahah). Indonesian Ulama Council (IUC) is a clerical institution that allows insurance products through an approach of hybrid contract. Through this article, the author will reveal whether IUC has legalized gambling through implementation hybrid contract (al-'uqûd al-murakkabah) in the formation of insurance products.