The Aims of Conventional Insurance

The main aim of insurance is not merely safeguarding the losses; it is also decreasing the uncertain and probable risk. Normally, the aims of insurance can be distinguished into two sides based on insured and insurer parties.
a. The aims of insured party:
1) To avoid the probable wider loss,
2) To get the indemnity from insurance company when the harm disaster is happening,
3) To shift the probable risk on to shoulder of other,
4) To decrease the suffered probable loss.
b. The aims of insurer party (Insurance Company)
1) To give the safeguard toward the probable loss which suffered the insured,
2) To give the support to the more advance direction of the economic development,
3) To lose the entrepreneurs’ doubts in their trade,
4) To ensure the investment,
5) To get the profit as the service repayment .

The Principles of Islamic Insurance

The goal of Islamic Insurance is protecting all members of participants by giving sum of funds to their heirs after their death, and being the savings funds for their preparation to face any losses cause of sickness, accidents and so on.
In accordance with the goal of Islamic Insurance above, the operational framework of Islamic Insurance relied on principles, which are the foundations of its operation. Perwaatmaja said that these principles are the implementation of mutual responsibility, cooperation and protection soul in society for the prosperity reaching .
Essentially the concept of Islamic Insurance is based on solidarity, responsibility and brotherhood among members of participants who have agreed to share defined losses to be paid out of defined assets.
Hence, the basic principles of Islamic Insurance are :
a. Principle of mutual responsibility
In this principle, every participant is able to feel the brotherhood of each other, and then the mutual responsibility upon someone else appears. The Messenger of Allah -peace be upon him- exampled Islamic brotherhood as a body, if part of it suffered from illness all parts of the body would join to feel that illness by sleeplessness and fever.
مَثَلُ الْمُؤْمِنِيْنَ فِي تَوَادِّهِمْ وَتَرَاحُمِهِمْ وَتَعَاطُفِهِمْ مَثَلُ الْجَسَدِ إِذَا اشْتَكَى مِنْهُ عُضْوٌ تَدَاعَى لَهُ سَائِرُ الْجَسَدِ بِالسَّهَرِ وَالحُمَّى
“Believers in their being friend, merciful and sympathy between one each other are like a body, if part of it suffered from illness all parts of the body would join to feel that illness by sleeplessness and fever”.

b. Principle of mutual cooperation and helping
It means, every participant of insurance has to cooperate each other in lightening other's burden, hence will be created the strong brotherhood. Prophet -peace be upon him- supposed such this activity as a building, which is one part sustaining other shares, so that will be created the strong and sturdy building.
الْمُؤْمِنُ لِلْمُؤْمِنِ كَالبُنْيَانِ يَشُدُّ بَعْضُهُمْ بَعْضًا
“One believer to other believer is like a building, which is one part sustaining other shares”

Besides that, every participant also has to progressively improve his care in effort of lightening the other's burden. Prophet -peace be upon him- taught that who lightens others' life needs, Allah will lighten his life burden in the world and eternity hereafter. He said in his Hadith:
عَنْ أَبِي هُرَيْرَةَ رضي الله عنه أن رسول الله صَلَّى اللَّه عَلَيْهِ وَسَلَّمَ قَالَ: مَنْ نَفَّسَ عَنْ مُسْلِمٍ كُرْبَةً مِنْ كُرَبِ الدُّنْيَا نَفَّسَ اللَّهُ عَنْهُ كُرْبَةً مِنْ كُرَبِ يَوْمِ الْقِيَامَةِ وَمَنْ يَسَّرَ عَلَى مُعْسِرٍ يَسَّرَ اللَّهُ عَلَيْهِ فِي الدُّنْيَا وَالْآخِرَةِ وَمَنْ سَتَرَ مُسْلِما سَتَرَ اللَّهُ عَلَيْهِ فِي الدُّنْيَا وَالْآخِرَةِ وَاللَّهُ فِي عَوْنِ الْعَبْدِ مَا كَانَ الْعَبْدُ فِي عَوْنِ أَخِيهِ
From Abi Huraira -may Allah be pleased with him- verily, Prophet -peace be upon him- said: “whosoever relieved muslim’s grieves in the world, Allah would relieve his grieves in Doomsday and whosoever facilitated bother, Allah would facilitate him in the world and hereafter, and whosoever hid muslim’s disgrace, Allah would hide his disgrace in the world and hereafter. And Allah helps His servant as long as he helps his brother”.

c. Principle of mutual protecting
Where all participants have principles that someone's belief is imperfect; who can asleep with fully filled stomach soundly, meanwhile his neighbors live in hunger. It means that the commitment to gain prosperity collectively is absolutely recommended to be created through his participation in Islamic Insurance.
Those three principles above are impossible to be formulated, unless based on godly value and sturdy belief. The sincere intention to help others suffered by disaster is really the basic foundation of Islamic Insurance.