Implementation of Insurable Interest Principles Between the Insured and the Beneficiary in Sharia Life Insurance

The principle of insurable interest in life insurance agreements, which is intended to protect insurance companies against risky policyholders, has existed since the 18th century. Since life insurance protects people from unexpected events, a life insurance contract must designate an insurable interest or party. Under Islamic rules, insurance policies cannot be used for gambling or speculation; therefore, Sharia life insurance policies cannot contain any form of risk (Maisir). The principle of insurable interest applies to policyholders and the insured in life insurance agreements, especially ones involving three parties. In Sharia life insurance, the relationship between the insured and the beneficiary must be regulated. This chapter uses primary and secondary data to investigate the insurable interest principle between the insured and the beneficiary in Sharia life insurance and the regulation of these principles in Indonesia.