Abstract
Research on funeral funds on a homeowner association has never been performed before. Meanwhile, previous studies on the funeral fund in insurance companies, 'rukun kematian,' and mosques are used as a reference. The research aims to analyze whether the funeral funds managed by informal institutions correspond with the micro takaful principle. Method is a descriptive analysis is used by comparing the survey in two groups, namely residential and village areas, of 31 communities spread across Java Island. The research variables developed include calculation, collection method, and amount of funeral fund contribution, alongside the calculation and amount of benefits. Although the funeral funds' variables have not fulfilled the micro takaful principle, there are interesting findings. These include that the calculation of contribution for the two groups, namely the residential and village areas, is performed by mutual agreement through community deliberations. In the village, the collection method is by direct payment from members of the public to the officers, which is different from the residential areas, where it is picked up by the officers. Furthermore, the amount of funding contributions to the community in the villages is around Rp. 3.001 and Rp. 5,000, while the total is over Rp. 10,000 in residential areas. The informal funeral funding scheme (IFFS) has become a mutually beneficial culture of Indonesian society, which fosters strong humanity and brotherhood. This scheme can be formulated in micro-takaful cooperatives to ensure that the benefits trickle down for every member of the community, including Muslims and non-Muslims.
Highlights
In the event of death, the family runs the risk, including the costs of arranging the remains, funeral, post-burial, and living expenses for the persons left behind (Holbert, 2002)
This study aims to analyze how the concept of funeral fund scheme as part of micro takaful is carried out by the homeowner association
Collection method of funeral fund contribution The predominant method of funeral fund contribution in residential areas was performed by officers, at a proportion of 65%, 29% was handed over by community members, while 6% were positioned in a place and picked up
Summary
In the event of death, the family runs the risk, including the costs of arranging the remains, funeral, post-burial, and living expenses for the persons left behind (Holbert, 2002). The cost of handling comprises bathing the body, which includes buying shroud, boards, and others, while the burial costs entail caring for the funeral, paying grave burrows, transportation, etc. Some Indonesian people hold a prayer between families and neighbors, and this activity requires money, as does the living expenses for families left behind, such as tuition fees, and other related costs. Hougaard & Chamberlain (2015) noted that the high cost in this country is due to the belief that funerals are a dignified activity and should be given priority, including food and transportation for the attendees
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