Liability of Islamic Banks in Bancassurance Activities

Abstract

The development of Islamic banking in Indonesia has driven collaboration between Islamic banks and insurance companies through bancassurance. However, this practice raises legal issues, particularly concerning the responsibility of Islamic banks in these activities. This study aims to analyze the legal relationship between parties in bancassurance and the responsibility of Islamic banks toward consumers. Using a normative legal method with a juridical approach, this research examines relevant legislation, including the Sharia Banking Law and regulations issued by the Financial Services Authority (OJK). The findings reveal that Islamic banks act as marketing agents for Islamic insurance products and do not bear direct responsibility for the contractual engagement between customers and insurance companies. However, they are obligated to ensure transparency of information and consumer protection in accordance with sharia principles and prevailing consumer protection regulations. The study highlights the necessity for more comprehensive regulations on sharia-based bancassurance to ensure legal certainty regarding the rights and obligations of all involved parties. The results contribute to academic discourse, provide regulatory insights for policymakers, and offer practical implications for the Islamic financial industry in enhancing consumer trust and compliance with sharia principles.