Scintific Journal of "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

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Scintific Journal of
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