INTRODUCTION TO ISLAMIC INSURANCE pdf download

Introduction To Islamic Insurance

INTRODUCTION TO ISLAMIC INSURANCE

• What is Risk?
• How do we distinguish between pure risk and speculative risk ?
• How risk is handled?
• Why every risk is not insured?
• What are the characteristics of Insurable risks?
• What are the requisites of Insurance for Covering Risk?
• What are the Principles of Insurance contract?
• What are the different types of Life Insurance policies?
• How Insurance is different from Gambling?
• What is the main function of insurance?
• What is the greatest value of insurance?
• What is the Purpose of Life Insurance?
• How insurance protects value of life?
• How life Insurance schemes meet the saving needs?
• What are the social and economic values of Insurance?
• What is the Actuarial principle of Life Insurance?
• What is reinsurance ?
• What are the different methods of reinsurance?

What is Risk?

Risk has been defined as the uncertainty as to the occurrence of an economic loss. It is the passivity of adverse result from a desired outcome. Risk and probability are not synonymous.

 We must understand the difference between risk and probability. The terms hazard and peril are closely related to probability than they are to risk.

For example, collision is a peril which causes motor car accident and loss. The condition which makes the occurrence of collision more likely is called the hazard. For example, foggy weather is the hazard which creates the peril of collision.

This means probability of collision increases when the hazard of foggy weather creates the peril of collision.

 Therefore, one can say that probability is the long run chance that out of a given number of possibilities, certain number of specific events will occur. But risk is the uncertainty as to occurrence of a loss.

This is measured in the terms of degree of variation that actual events bear to probable events.