Abstract
Purpose: This paper aims to explain new insurance products and policies in Rastin Profit and Loss Sharing (PLS) Banking. Rastin Banking is a full Islamic Banking System with all necessary parts for banking operations that can be installed in conventional and Islamic banks both. In this paper, we are going to explain the milestones of new insurance products and policies.
 Design: Rastin Banking complies with the nature of the intermediary financial activity and has a new type of banking operations. The systems and instruments of this type of banking have different risk treatments, and new insurance policy and measures should be defined to cover the risks of the operations In order to fulfill this goal, appropriate insurance policies are described.
 Findings: Some new insurance products are defined such as Certificate Insurance, Insurance of Market Value of Certificate, Responsibility/Engineering Insurance, Insurance of Accidents Concerning the Article of Sharing, Collateral Insurance, Loss Margin Insurance, Profit Margin Insurance, Merchandise Transportation Insurance, Production Equipment and Installations Insurance, Product Quality Insurance, Insurance of Commodity under Production, Inventory Insurance, Production Limited Loss Insurance, Transaction Limited Loss Insurance to handle Rastin Banking.
 Research limitations: Many of these insurance policies are new and require more elaborations for further practical development and adjustment.
 Practical implications: These insurance products can be used both in Rastin Banking operations as well as conventional business and finance arrangements. These insurance policies have no conflict with indisputable legal principles, and insurance companies can supply these insurance products based on their own actuary calculations.
 Social implications: The introduced insurance policies actually change profit and loss sharing activity to just profit sharing.
 Originality/value: Approach of this system and the designed insurance policies is entirely different and new.
Highlights
Insurance in Persian is called “Bimah” derived from the word “Bima”, and has Sanskrit root2 and has the same root of the verb “Bim” in Persian
Some others believe that this term comes from the translation of a Russian word of “Astrakhan” from a philological point of view that means as opposite of fear; this is because Russians introduced insurance in Iran for the first time
Applied the meaning of Bimah is the organized grouped guarantee or coverage for facing the aftermaths of perils and losses or future unwelcoming events in socioeconomic life
Summary
Insurance in Persian is called “Bimah” derived from the word “Bima”, and has Sanskrit root and has the same root of the verb “Bim” (to fear) in Persian. 24- Social Security Certificate: is an anonym or named negotiable document with defined nominal price issued and for a specified period given to the insured person by Rastin PLS bank on behalf of the security fund in exchange for payment of insurance premium to the security fund The holder of this certificate shares the fund capital proportionate to the value and shares the fund returns proportionate to the amount and duration of his certificate. 28- Loan Certificate: is an anonym or named negotiable document with a defined face value and term that is issued by Rastin PLS bank The owners of these certificates give a choice to the bank to use their deposits for extending interest-free loans to needy people for a specific period, and return the principal money back to the depositor after that period and report his activity to the depositor and supervisory authorities. Insuring Rastin Certificate is optional for the depositor in Rastin Banking
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