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Shariah-compliant Insurance

Sompo Insurance Sharia offers an alternative source of insurance protection with a different approach to risk transfers. A Shariah-compliant Agreement can be translated to simply mean “joint guarantee” – joint responsibility with the underlying characteristic of “sharing”. This means a shared responsibility, shared guarantee, collective assurance, and a mutual undertaking. 

It is a system in which the participants share the risks by donating (infaq) part or the entire contribution through a tabarru fund, which will be used to pay the claim in case an accident occurs to one or some of the participants. Sompo Insurance’s role in this case is merely that of a fiduciary company that manages and invests the funds collected from participants’ contributions. The insurer is responsible only for the operational management of the funds and not as the underwriter as commonly found in conventional insurance.