Legal Analysis of The Element of Uncertainty in Islamic Insurance from A Business Law Perspective

Abstract

Islamic insurance is a rapidly developing financial instrument in Indonesia, but it still faces challenges related to elements of uncertainty in contracts. This uncertainty can affect the validity of agreements and public trust in Islamic insurance products. Therefore, it is important to analyze the legal regulations and their implementation in the context of business law. Uncertainty often arises in the practice of Islamic insurance, which can influence public trust and the validity of contracts. Islamic insurance, as an alternative to conventional insurance, must adhere to Islamic principles that emphasize justice, transparency, and mutual assistance. However, the element of uncertainty in its products and practices presents a unique challenge. This research aims to identify the legal regulations regarding elements of uncertainty in Islamic insurance and analyze the implementation of these regulations in practice. This study uses a normative legal method, which focuses on the analysis of laws and regulations, legal documents, and related literature to understand the legal framework governing Islamic insurance, particularly concerning the elements of uncertainty from a business law perspective. The research findings indicate that the legal regulations regarding uncertainty in Islamic insurance still require refinement, particularly in terms of transparency and the clarity of contracts. The implementation of these regulations in the field is often hampered by a lack of understanding from the parties involved and challenges in applying Sharia principles. This research recommends the need for improved legal education and socialization regarding Islamic insurance to reduce uncertainty and enhance public trust.