Liability for the Destruction of Collateral Object of Fiduciary Guaran-tee in Uninsured Murabahah Bil Wakalah Financing

Abstract

Murabahah bil wakalah financing allows customers to obtain insurance coverage for their obligations against all goods used as collateral for financing by transferring the risk of collateral through insurance mechanisms. The insurance is provided by an insurance company designated by the Bank, which appoints and establishes the Bank as the party entitled to receive payment of the insurance claim (BANKER'S CLAUSE BANK). This is certainly very risky for Islamic banks, as there is a possibility that financing recipients may not insure the financing object. Research using a legal regulation approach and a conceptual approach yields a conclusion: Dispute resolution, if the financing recipient defaults on the Murabahah bil waka lah financing and the uninsured fiduciary collateral object is destroyed, is pursued through a lawsuit in the District Court based on breach of contract. However, in Islamic financing, the resolution of problematic financing is based on the Fatwa DSN 47/DSN-MUI/II/2005 on the Resolution of Murabahah Receivables for Customers Unable to Pay. The destruction of the financed object burdened with insurance, where the financing recipient acts as the insured party, makes the Bank the financing provider liable. If the funded object is destroyed and the insurance claim does not cover the remaining payment, the financing recipient is still obligated to continue the insurance as the shortfall in payment persists.