"Islamic Finance Researches" (IFR)

Designing Tradable Life Insurance Policy in Secondary Market Based on Imamiah Jurisprudence

Document Type : Science - Research (Islamic Insurance)

Authors

1 Ph.D. Student, Faculty of Management, Allameh Tabatabaee University, Tehran, Iran

2 Assistant Professor of Finance Department, Imam Sadiq University, Tehran, Iran

Abstract

Life insurance as one of the practical financial instruments in conventional finance and Shariah- approved contracts, has been very important. The thesis is aimed at solving one of the fundamental problems of insurance companies and policy holders i.e. the cancelation of policy before its maturity. It should be noted that the method of research in this study is multi-stage ijtihad. The research has suggested the solution to this problem as tradable life insurance (Traded Life Policy). And since no research has been carried out in Iran on this issue regarding the potential of life insurance contracts, in the first step the quiddity of life insurance and its settlement have been investigated and explained. In the next step, the jurisprudential and technical dimensions of designing this instrument in Iran according to Imamiah fiqh have been analyzed. Also, by employing the multi-stage ijtihad research method approach, an interview was conducted with Iranian insurance industry and Islamic financial experts at technical and jurisprudential levels of the subject. The results of the research and proposed model have been moderated and finalized with expert comments. The legal and technical dimensions of the subject have been presented comprehensively and the suggested model of “selling beneficiary right with submission of life insurance contract” has been finalized with the Shariah considerations of the experts. The correctness of the suggested model has gained the approval of fiqh authorities (maraje’) and has received religious certificates. Thus, life insurance could be traded legally and technically, according to the model presented here.

Keywords

Allameh Hali, H, bin Y (1410). The Finality of Al-ahkam in the Knowledge of Al-ahkam (Edited by Mehdi Rajaee). Qom: Ismailian (In Persian).
Allameh Hali, H, bin Y, (1413). The Rules of Al-Ahkam in the Knowledge of Halal and Haram. Qom: Islamic Publications Affiliated with Qom Seminary Teachers' Society (In Persian).
Askari, M, M; & Sadeghi Shahdani, M; Hosseini, S, A; & Seiflo, S (2015). Jurisprudential Study of Insurance Securities (with a Thematic Approach). Insurance Research Journal, 31 (121), 123-138 (In Persian).
Blake, D., Cairns, A., Coughlan, G., Dowd, K. & MacMinn, R. (2013). The New Life Market. Journal Risk and Insurance, (80): 501-588.
Doherty, N. A., & Singer, H. J. (2003). The Benefits of a Secondary Market for Life Insurance Policies. Real Prop. Prob. & Tr. J., 38, 449.
Doherty, N. A., O'Dea, B. A., & Singer, H. J. (2004). The Secondary Market for Life Insurance Policies: Uncovering Life Insurance's Hidden Value. Marq. Elder's Advisor, 6, 95.
Gatzert, N. (2010). The Secondary Market for Life Insurance in the United Kingdom, Germany, and the United States: Comparison and Overview. Risk Management and Insurance Review, 13(2), 279-301.
Isfahani, M, H. (1415 AH). Margins of Acquisition (Vol. I). Qom: Fiqh (In Persian).
Insurance Research Institute (1396). Statistical Yearbook of Insurance Industry - 2016. Tehran: Insurance Research Institute (In Persian).
Jafari Langroudi, M, J. (1376). General Introduction to Jurisprudence (Vol. I). Tehran: Treasure of Knowledge (In Persian).
Sigma (2020). World Insurance No.4/2020, Swiss Re Company, 24-34.
Saadi, H, A; & Mirzakhani, R. (2013). The Validity of Life Insurance within the Framework of Independent Jurisprudential Contracts. Insurance Research Journal, 28 (111), 73-100 (In Persian).
Tawhidi Al-Tabrizi, M, A. (1412 AH). The Light of Jurisprudence in Transactions from which the Argument is Narrowed Down to the Relative al-Qaeda Name (Vol. II). Beirut: Jurisprudence (In Persian).
Tabatabai Al-Hakim, S, M. (2013). Nahj al-Fiqh (Vol. I), Qom: 22 Bahman (In Persian).
The First Martyr (1412). Shari'ah Courses in al-Umamiyah Jurisprudence. Qom: Islamic Publications Affiliated with Qom Seminary Teachers' Society (In Persian).
Mousavian, S, A; & Khansari, R. (1395). Multi-Stage Ijtihad, Research Method, Inference of Economic Jurisprudence Issues. Scientific Quarterly of Islamic Economics, 16 (63), 5-38 (In Persian).
Mousavia Khomeini, R. (1412). Albiee (First Volume). Tehran: The Institute for Compilation and Publication of Imam Khomeini's Works (In Persian).
Ziser, B. (2006). Life Settlements Today: A Secret No More. The Journal of Structured Finance, 12(2), 35-37.
Volume 11, Issue 1 - Serial Number 21
February 2021
Pages 259-290
  • Receive Date: 23 November 2021
  • Revise Date: 02 January 2022
  • Accept Date: 14 February 2022