What are the objections against conventional life insurance

What are the objections against conventional life insurance What are the objections against conventional life insurance? There are various reasons cited by those who do not accept life insurance from the Islamic point of view, can be generally divided into three main arguments: i) Gharar (Uncertainty); ii) Maisir (Gambling); and […]

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The weaknesses of conventional non-Life Insurance

The weaknesses of conventional non-Life Insurance What are the weaknesses of conventional non-Life Insurance? One can not deny the fact that the insurance system has certain inherent weaknesses. For example, the benefits of insurance are achieved only at the expense of certain social costs. Therefore, we may look into those […]

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Different methods of re-insurance

Different methods of re-insurance What are the different methods of re-insurance? Reinsurance can be effected broadly by two methods: (a) Facultative; and (b) Treaty. Facultative reinsurance is effected only in special cases. Generally protection is obtained by a reinsurance treaty. Under treaty arrangement the ceding company agrees to cede during […]

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What is Reinsurance

What is Reinsurance It is understood that in insurance the fund of the policyholders is managed by insurance companies and the losses incurred by a few are shouldered by many. Therefore, more the number of risks, lessen the possibility of loss incidence. In other words, wider the geographical spread of […]

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The Actuarial Principle of Life Insurance

The Actuarial Principle of Life Insurance The actuarial side of life insurance is the function of mathematicians. An actuary or mathematician with the help of mortality table can calculate the probabilities of death and survival. The actuary, by assuming a future rate of interest, calculates the present monetary value. This […]

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How insurance protects value of life

How insurance protects value of life The main economic problem which arises when someone in the family dies, is the loss of earnings of the deceased person. In a business firm if a key employee dies, the firm may lose valuable customers whose loyalty depends on this individual. The value […]

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What is the greatest value of Insurance

What is the greatest value of Insurance Insurance is a socio-economic institution that reduces risk both to society and to individuals. This is done by combining under one management, a large group of objectives so that the aggregate loss to which society is subject becomes predictable. Insurance has scientific basis […]

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What is the main function of Insurance

What is the main function of Insurance We all know that life is full of uncertainty. We can not avoid the risks in life and hence insurance. This is because insurance is considered to be the most effective and economic way of dealing with risks. Insurance, in fact, combat the […]

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