Aceh (January 13, 2022) – The pioneer of the sharia insurance industry in the country, Sun Life, is committed to not only providing the most complete innovation and services for sharia-based insurance products, but also encouraging the improvement of sharia insurance literacy in Indonesia. Strengthening this commitment, today Sun Life held a socialization activity related to sharia insurance and a gathering with 20 dayah ulama and dozens of sharia economic figures in Aceh with the aim of making Aceh a center for national sharia economic development.
This initiative was taken as a follow-up to the Qanun implementation or legislation Number 11 Year 2018 about Sharia Financial Institutions (LKS), which mandates that all financial transactions in Aceh are required to use Sharia principles and will be effective starting January 2022.
Chief Sharia Business of Sun Life Indonesia, Norman Nugraha, explained “The Qanun implementation towards the Islamic financial institutions is an important milestone in the effort to make Aceh a center for the development of the national sharia economy. This is possible with the collaboration from all parties, from making policy, industrialists, to the involvement of community leaders. This is what underlies Sun Life, to hold socialization related to the benefits of sharia insurance, as well as a gathering event involving dozens of dayah clerics, as well as local sharia finance figures. We hope that this activity can be a trigger for the growth of the sharia economy in the Aceh region, and further realize a just and prosperous Acehnese economy, under the auspices of Islamic law.”
Nowadays, The Financial Services Authority (OJK) of Aceh Province noted that the level of sharia financial understanding (literacy) of the people in Aceh Province in 2019 was higher than the national achievement of 8.93 percent - reaching 18.64 percent. Nevertheless, this number needs to be increased, so that Aceh’s economic growth rate, as well as financial institutions and sharia economy nationally can continue to be strengthened.
In this case, the important role of ulama in increasing public literacy certainly cannot be underestimated, not least in instilling understanding and literacy related to sharia insurance. Chairman of the Aceh Dayah Ulama Association, Tgk M, Yusuf A. Wahab conveyed, “Ulama have an important role in guiding the community regarding various aspects of life, ranging from aqidah, morals, as well as fiqh and muamalah. Providing understanding to clerics regarding the benefits of sharia insurance, can be a gateway for the distribution of information, as well as creating a society that is able to take advantage of sharia-based insurance instruments, which is not only beneficial for personal good, but also gives blessings to the people.”
The role of sharia insurance in the Qanun LKS implementation in Aceh was also emphasized by the Chairman of the Sharia Supervisory Board of Sun Life Financial Indonesia, Prof. DR. H. Fathurrahman Djamil MA. “The Qanun LKS principles are to make sharia economic law and muamalah solely for the purpose of worship. Aligned with this goal, sharia insurance comes with the basic principle of helping, and aims to provide protection for fellow participants through the management of tabarru' funds, by applying legal and operational principles according to Islamic law. This means that the involvement and active role of the community in the application of the economy, especially sharia insurance, will not only have an impact on the benefit of themselves and their families, but also the wider community. Moreover when sharia insurance is also embedded with other benefits, one of which is waqf.”
Other than a form of mutual protection, the use of sharia-based insurance can also be a form of investment in this world and the hereafter. This is possible due to the presence of a national waqf feature, which was first introduced by Sun Life Indonesia. Some of the important benefits of waqf features, including:
“Sun Life believes that sharia insurance and the important values offer great benefits to the wider community. Supported by the implementation of Qanun in the Aceh region, and the participation of local ulama and community leaders, we are optimistic that the development of sharia insurance in this special region will continue to grow and provide greater benefits," concluded Norman.
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About Sun Life Financial Indonesia
Sun Life Financial Indonesia is a subsidiary of Sun Life Financial. We offer a variety of products protection and wealth management, from life insurance, education insurance, health insurance, and retirement plans. Sun Life partners with leading financial institutions, both national and international, to serve multi-distribution channel strategies and provide wider access to our insurance solutions.
Sun Life Financial Indonesia has won several prestigious awards from 2019 – 2021 including:
About Sun Life
SLF Inc. is a leading international financial services provider company that provides a variety of insurance products, as well as wealth and asset management solutions, both for individuals and corporations. Sun Life has operated in a number of major markets throughout the world, namely Canada, United States, United Kingdom, Ireland, Hong Kong, Philippines, Japan, Indonesia, India, China, Australia, Singapore, Vietnam, Malaysia, and Bermuda. As of June 30, 2021, Sun Life had total assets under management of CAD1.36 trillion. For more information, please visit www.sunlife.com
Sun Life Financial Inc. traded on the Toronto stock exchange (TSX), New York (NYSE) and Philippines (PSE), with the SLF stock code.
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