Islamic Economics Institute

Wednesday Academic Dialogue (2-1439)

Do We Need to Review our Starting ?

The Concept of Cooperative Insurance

Its Historical Background and Epistemological Dimensions

Full Text

AbdulRazzaq Saed Belabes

Researcher, Islamic Economics Institute

King Abdulaziz University, Jeddah, Saudi Arabia

Wednesday 20-09-2017 (29-12-1438H)

Abstract

The aim of the paper is to shed light on a phenomenon largely met in the literature qualified as "Islamic insurance". This is to stand up to the concept of cooperative insurance that emerged in Europe in the nineteenth century without going into its historical roots, epistemological assumptions and underlying notions. The most important finding of the paper is that the adjective "cooperative" is closely linked to the modern cooperative movement that emerged in UK in 1844. It is one of the generated words that were designed based on the translation of a foreign word. This calls for a reconsideration of the discourse that cooperative insurance is based on the principle of cooperation that Islam called to more than fourteen centuries ago. The study also found that the classification of cooperative insurance from Islamic jurisprudence (takyīf fiqhī) as a donation contract (‘aqd tabarru’) is due to the translation of the French term "société coopérative" to "cooperative association" (jam’iyah ta’āwuniyah), which is, in fact, a firm subject to corporate law. This means that translation should be based on the underlying notions.

Keywords: Islamic Finance, Cooperative Insurance, historical roots, epistemological assumptions.



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