Servant Of The Light.

If you consider the ever increasing cost imposed by the monopoly of car insurance corporations upon the masses, and the obscene profits that this generates for the elite who instituted this system upon us, at present you have no choice but to suffer their sovereign based model.

The Islamic model of car insurance.

I will use simple figures to explain the outline of the model, so say on average a person pays £500 a year to insure their car through the corporate system, and if they claim on their policy it would increase substantially the following year, this is to maintain the 80% profit margins the corporations have established.

So a collective of people is formed, wishing to insure the car, say a 1000 local people join, each of them, then pays £500, the same as they would have paid the insurance company for a years insurance, you could alter the amounts based on the value of the car or the track record of the driver, but for simplicity we'll say they all pay £500, that's a total of £500,000.

On average a driver has an accident every 7 years, only half of these are the fault of the driver, so only half would be claimed from the Islamic insurance policy, this means out of 1000 drivers on average only 72 accidents will be claimed in the year, if you add in uninsured drivers this would rise to say 100 claims.

If each claim cost on average £1000 it would mean that at the end of the year each member would still hold £400 unused within their original premium, so they would only have to pay £100 for the second years insurance, if they canceled their policy at any point they would be repaid the unused portion of their original investment, of say £400.

Now you would say who would run such a scheme without taking a large profit, as people are greedy and selfish, I agree.

The original sum of £500,000 is held within a repository, skilled and verified competent mechanics are found interested in working within an Islamic business model.

Say 2 local mechanics would be needed to maintain the claims of the 1000 policy holders, to establish this suitable local premises are found and paid for out of the premiums, say it costs £200,000

The equipment required to run the garage would be found and purchased costing say £100,000, a tow truck and two complimentary cars for policy holders to use while their car was repaired are purchased costing say £50,000

So to establish the business it would cost a total of £350,000, leaving £150,000 to pay the wages and buy the materials the mechanics would require to fix the cars from the claims, £50,000 could be then exchanged for pure silver to hold the value of the investment, out of the silver policy holders wishing to end their insurance could claim back the unused potion of their investment.

If the mechanics charged £20 per hour for their labour they would claim £15 per hour, £5 of their labour would be given back to the original premium fund to reimburse the investors, until the £350,000 was repaid in pure silver linked to the weight of pure silver the money would have bought on the day of the loan.

Over time the interest free loan of £350,000 would be repaid, at which point the mechanics would receive the full amount of their earned £20 per hour.

If a mechanic wants to leave the business, another mechanic would have the same deal, the retiring mechanic would receive the investment back he had paid into the business, either from the investment fund of the premiums, or paid from the savings of the replacement mechanic, or combination of the two. Say he had paid back £200 per week for 10 years, so he's paid back £100,000, this would be the investment he had earned being returned to him, of course it would be linked to pure silver so would not be as precise a return, it would be more, as the link to silver removes the usury problem of inflation.

Some people who are hit by a member of the Islamic insurance group may not wish to have their car repaired at the group garage, instead wishing to have the claimed paid out from the communal pot to another garage. To balance this the cost of claims paid through the insurance of another insurer would be in line with the cost imposed upon the collective by them, so removing the burden through this tit for tat concept.

Allodial contract

Before the concept can be begun a detailed contracted must be drawn up, detailing the conditions and organisational aspects of the insurance.

The two mechanics chosen to provide the service of repairs would be under this contract as would the members investing in the insurance, each member would have to sign a witnessed contract, to establish under common law that they are in agreement with the conditions imposed by the contract.

The witnessed contract is a foundation of common law, the first law being 'Do all you have agreed to do', the garage business would belong to the two mechanics as an allodial ownership contract held through the repository, this means they cannot mortgage it, borrow against it from the usury system, gamble with it, or use it as collateral.

Once the property and equipment loans are repaid in silver to the repository holding the premiums, the garage belongs soley to the mechanics, the labour costs are held within the terms of the contract, but at that point they would be free to do alternative work with their garage, leaving the repository free to begin the cycle of investing in a garage and the equipment for new mechanics.

Poor service or corruption from the mechanics

The assets of the garage and equipment are held in custodianship by the repository representatives, until the mechanics have paid back the original investment lent from the premiums. If the service is poor, or the mechanics are dishonest, the members of the collective using the insurance scheme would steadily abandon the scheme, going into another scheme, or back to corporate insurance.

This has the effect of draining the premiums back out of the group, each investor leaving is reimbursed their outstanding premium, possibly around £400 linked to the silver price on the day of insurance, so it would, if paid in fiat paper money, due to inflation, be more than their original fiat amount.

Once the held premium reserves of the repository have been exhausted the equipment and garage itself would be sold to recover the premiums for the investors, leaving any remainder for the failed mechanics. And effectively canceling the insurance from that point.

Apprenticeships

If the garage was reliable and good workmanship people may use it for general repairs and maintenance, possible receiving a discounted price through membership to the insurance scheme. This increased work load may require more mechanics, or an apprentice.

If a new mechanic is recruited, the original investment would become a division of three not two, so if the original mechanics had paid back 80% of the loan, the new mechanic would have the full third of the original investment to pay, or take upon himself as a loan from the premiums of the repository. This would mean if he relied solely on the repository premiums to cover the cost of his share, the original mechanics would be paid a portion of their repaid investment back.

A third of the original investment would be 7290 oz of silver, on the silver price of the day of investment.

The total of the original investment 21870 oz of silver

17500 oz of silver repaid by the two original mechanics being 80% in this example.

4370 oz of silver is still outstanding.

1460 oz of silver would be given to each of the original mechanics to return their paid share of the garage, and they would no longer have to give part of their labour to cover the costs of repayment.

If the two mechanic chose to take in an apprentice, this would function slightly differently, the apprentice would be paid say £10 per hour but only receive £6 per hour, the other four pounds would be offset to the loss of earnings of the skilled mechanics who would have to spend some of their time training and supervising the work he was carrying out.

This means the jobs the apprentice worked on would be charged less per hour, if the apprentice and a skilled mechanic were working, the skilled mechanic would charge £4 per hour less for his labour, and take that missing £4 from the £10 the apprentice is charge out at. After the first year the apprentice would be paid £8 per hour and the skilled man would reduce his invoiced hourly rate by £2 per hour taking the short fall from the apprentices earnings. The third and fourth years the apprentice would be paid the full £10 per hour. When the training was complete the mechanics could invite the apprentice to work in collaborate with them and buy into the garage as described above.

The repository costs

The administration of the scheme could be done through a repository system, as described in the essay 'The Islamic Repository', the drawing up and witnessing of contracts, the processing of claims, the administration of the garage, in loan repayments, invoice payments, premium reimbursements, fraudulent claim investigation, and other aspects of the administration of the scheme would be performed by the administrators of the repository, for which they would charge the premium fund at set hourly rate, say £15 per hour plus costs.