M., Pudail and Mu’allim, Amir and Nur Kholis and Md Dahlan, Nuarrual Hilal (2026) From rule-based to purpose-based compliance: reconstructing substantive sharia compliance in Islamic general insurance. Tasharruf: Journal Economics and Business of Islam, 11 (1). pp. 151-184. ISSN 2528-0317

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Abstract

The Islamic general insurance industry in Indonesia has a relatively complete normative architecture through the Insurance Law, Financial Services Authority (OJK) Regulations, and DSN-MUI fatwas, yet its practice remains dominated by formal compliance that stops at contract validity and document completeness. This condition creates information asymmetry that disadvantages participants, an imbalance between participants’ rights and obligations, and a Sharia Supervisory Board role that lacks public accountability. This study aims to analyze the quality of product information delivery and the implementation of participants’ rights and obligations, and to reconstruct a substantive Sharia compliance model based on maqāṣid al-sharī‘ah. It employs a qualitative legal juridical-empirical case study of PT Asuransi Takaful Umum and PT Zurich General Takaful Indonesia. Data were collected through in-depth interviews with agents, participants, Compliance Directors, and Sharia Supervisory Board members, as well as a review of policies and regulations, and then analysed interactively and interpreted using the six features of Jasser Auda’s Systems Approach. The findings show that both companies have met formal compliance, but participants do not yet understand information on the tabarru‘ fund, ujrah, investment, underwriting surplus, and sharia supervision outcomes; participants’ rights remain contractual, while their obligations are strictly regulated. The study concludes that a shift from rule-based to purpose-based compliance is needed through a five-pillar model that assesses compliance by its outcomes in transparency, literacy, rights protection, trust, and participant welfare. The model can serve as a reference for regulators, Sharia Supervisory Boards, and companies in designing sharia disclosure and compliance evaluation standards.

Item Type:	Article
Uncontrolled Keywords:	substantive sharia compliance; maqāṣid al-sharī‘ah; Islamic general insurance; systems approach; tabarru‘ fund.
Subjects:	K Law > K Law (General)
Divisions:	School of Law
Depositing User:	Mrs. Norazmilah Yaakub
Date Deposited:	18 Oct 2026 04:27
Last Modified:	18 Oct 2026 04:27
URI:	https://repo.uum.edu.my/id/eprint/36529

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