How is insurance islamic

In Islamic law, investing activities categorized as economic activities that are included in muamalah activity is an activity that regulate human relationships.

Meanwhile, according to the rules of jurisprudence, legal origin muamalah activities that are permissible (be) which means all the activities in the relationship between human beings is permissible (be) except that indeed there is clearly a ban (forbidden).
This means that when an activity muamalah newly emerging and previously unknown in Islam, then the activity is considered to be permitted except that indeed there are implications from the Qur'an and the Hadith prohibiting it is implicitly or explicitly.

In some classical Islamic literature did not reveal any terms of investment and capital markets, but as an economic activity, these activities can diketegorikan as trading activities (Al Bay).

Sharia fatwas of the National Assembly Council of Ulama Indonesia (DSN-MUI), until 2004, has published as many as 6 (six) related to the capital markets industry. The sixth fatwa is meant is:

1. No.05/DSN-MUI/IV/2000 about the Share Sale and Purchase
2. No.20/DSN-MUI/IX/2000 on Guidelines for Shariah Investment For Mutual Funds
3. No.32/DSN-MUI/IX/2002 about Sharia Bonds;
4. No.33/DSN-MUI/IX/2002 about Sharia Bonds Mudharabah;
5. No.40/DSN-MUI/IX/2003 on the Capital Market and the General Guidelines for Implementation of Islamic Capital Market;
6. No.41/DSN-MUI/III/2004 about Islamic Ijarah Bonds.

Fatwas mentioned above regulate the principles of Islamic capital market that includes an effect that is deemed in compliance with Sharia principles if it has obtained a written statement of compliance from the Islamic DSN-MUI.

As for the stages that must be passed to obtain a certificate / predicate of the DSN-MUI sharia is that the issuer must first present the structure for the results especially with the customers / investors, the transaction structure, the shape of the treaty as an agreement perwali amanatan etc..