Tabarru Fund Reviewing the Ownership Status of the Tabarru' Fund in the Islamic Insurance Industry.

Abstract

This article discusses the status of Tabarru' Fund, which distinguishes Islamic insurance from conventional insurance. The Tabarru' Fund is intended to pay claims to participants who experience misfortune, rather than as a source of profit for the insurance company. It is regarded as a collective fund owned by all participants and must be managed transparently and in accordance with Sharia principles.

The issue arises concerning accountability and clear ownership, especially since the fund might be temporarily used or borrowed by the insurance company to cover liquidity shortages. This practice could pose a Sharia compliance issue if not strictly regulated. Therefore, the ownership status of the Tabarru' Fund in the management of Islamic insurance must be clearly defined.