Islamic insurance 2014 topic 3

286
-1

Published on

takaful

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
286
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
14
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Islamic insurance 2014 topic 3

  1. 1. Islamic Insurance (Takaful) Dr. Kamaru Salam Yusof Lecturer, FBMS, Unissa Negara Brunei Darussalam
  2. 2. TOPIC 3: TAKAFUL; CONCEPT & HISTORY
  3. 3. Faculty of Business & Management Sciences, UNISSA, Brunei Darussalam word • The term is a (infinitive noun), which is derived from the root word . • means ‘guarantee’. • The word whose chief characteristic is , means ‘sharing’. • Thus, the word (Takaful) means ‘shared responsibility or shared guarantee, responsibility, assurance or surety’.
  4. 4. Faculty of Business & Management Sciences, UNISSA, Brunei Darussalam word • Technically, (Takaful) from the economic point of view means mutual guarantee provided by a group of people living in the same society against a defined risk or catastrophe befalling one’s life, property or any form of valuable things
  5. 5. Faculty of Business & Management Sciences, UNISSA, Brunei Darussalam Meaning of takaful 1. Responsible 2. Guarantee 3. takaful - joint guarantee, share responsiblity 3 aspects mutuality happen • Help • Responsibility • protection
  6. 6. Faculty of Business & Management Sciences, UNISSA, Brunei Darussalam concept • system where participant contribute to common fund and intend to jointly guarantee each other. • when participate –seek protection –jointly co-operate
  7. 7. Faculty of Business & Management Sciences, UNISSA, Brunei Darussalam Dalil of Takaful “…and help you one another in righteousness and piety” As-Sunnah “Narrated by Abu Hurairah (r), who said that: once two women from the tribe of Huzail clashed when one of them hit the other with a stone, which killed her and also the foetus in the victim’s womb. The heirs of the victim brought an action to the court of the Holy Prophet (s.a.w), who gave a verdict that the compensation for the infanticide is freeing of a male or female slave while the compensation for killing the woman is the blood money (diyat), which to be paid by the ‘Aqilah’ (the paternal relatives) of the accused”.
  8. 8. History of takaful
  9. 9. Faculty of Business & Management Sciences, UNISSA, Brunei Darussalam History of takaful • Ancient Arab tribal custom and the companions of the Prophet. • The custom of “al-aqilah”, it is mutually agreed among the tribes that if a person is killed unintentionally by a person of a different tribe, the accuser’s paternal relatives will take the responsibility to make a mutual contribution for the purpose of paying the blood money to the victim’s relatives. • This practice of having a fund that pools contributions from a group of people to assist others in need was further encouraged in the early Islamic period.
  10. 10. Faculty of Business & Management Sciences, UNISSA, Brunei Darussalam arab tribe - relation blood • Prophet approve • aqila • sence of brotherhood • case – unintentional murder
  11. 11. Faculty of Business & Management Sciences, UNISSA, Brunei Darussalam Takaful in modern world • The first modern Islamic insurance was introduced in Sudan - based on a cooperative model not dissimilar from a conventional mutual insurer. • More commercial models of Takaful were later implemented in countries such as Malaysia and Saudi Arabia. • Takaful has evolved into a viable alternative to conventional insurance and is able to attract a wide range of customers, Muslim and non-Muslim alike. • Eg: Sri Lanka, where less than 10 percent of the population is Muslim, some 15% of the policyholders of the sole Takaful undertaking there are non-Muslims.
  12. 12. Faculty of Business & Management Sciences, UNISSA, Brunei Darussalam Evolution in takaful • 1979 -- ta'awuni – Sudan • 1984 -- mudarabah – malaysia • 1984 -- wakalah – gulf • 1996 -- waqf - south africa
  13. 13. Faculty of Business & Management Sciences, UNISSA, Brunei Darussalam Takaful as industry today • Now practiced by over 60 companies in 23 countries. • More recently, retakaful, the equivalent of conventional reinsurance, has been developed, initially in Malaysia. • At present, most Takaful operators reinsure to conventional reinsurers, and this is considered acceptable so long as there is no practicable Shari’ah compliant alternative
  14. 14. Faculty of Business & Management Sciences, UNISSA, Brunei Darussalam Takaful in present day spirit 1. helping friend – feast 2. repair house 3. Moving 4. khayrat fund • All are not contradict • but not commercial
  15. 15. Faculty of Business & Management Sciences, UNISSA, Brunei Darussalam
  16. 16. Faculty of Business & Management Sciences, UNISSA, Brunei Darussalam Takaful’s growing share of the GCC insurance industry • With a focus on Takaful, Saudi Arabia tops the world rankings, holding 75% of total global contributions, according to the latest released figures for 2009: followed by Malaysia and the UAE, which is emerging as one of the most developed Takaful markets in the region.
  17. 17. Faculty of Business & Management Sciences, UNISSA, Brunei Darussalam Ruling of takaful • 1965 – cairo • 1976 - mecca - insurance for profit is contrary • 1985 - Jeddah - Islamic Fiqh Academy - approved takaful as alternative • 1984 - Malaysia takaful act - 1st in world – Shariah Advisory Council
  18. 18. Faculty of Business & Management Sciences, UNISSA, Brunei Darussalam Ruling of takaful (2) takaful must base on 1. Mutuality 2. co-operation Principles 1. shared responsibility 2. joint indemnity 3. common interest 4. solidarity
  19. 19. Faculty of Business & Management Sciences, UNISSA, Brunei Darussalam Sources of Law Affecting Takaful 1. Al-Quran-elements of mutual cooperation= Almaidah: 5:2. Alleviation of hardship= 2:185 2. Sunnah= Prophet said: Tie the camel first and then leave it to Allah 3. Practices of the companion-Al-Dawawin System by S. Umar. 4. Fatwa or Ijtihad: Ibnu Abidin=Permissible insurance in trade for merchant known as Sukra. Muhammad Abduh, Zarqa-agreed to the validity of Islamic insurance 5. Masalih Mursalah= Life, necessity. A way of providing material security. 6. Urf-Tribal Custom practice known as Aqilah. 7. Unanimous Decision of Muslim Scholars – Islamic FiqhWeek Syria 1961, – Muslim Scholars Conference 1965 Egypt and Islamic Economic – Conference Mecca 1976 - Validity of insurance business except life insurance. – International Islamic Insurance Dubai 1996 – Labuan1997 -Validity of Takaful.
  20. 20. Faculty of Business & Management Sciences, UNISSA, Brunei Darussalam Takaful and Maqasid al Shariah. • Protection of property and Protection of life: • Hajiyat and daruriyat • Legal maxim: darar must be removed. • To spread the risks of losses around the large number of participants • Dr mohd daud bakar: making takaful mandatory to muslims. • Compulsary to protect the essential needs of the society.
  21. 21. Case study
  22. 22. Faculty of Business & Management Sciences, UNISSA, Brunei Darussalam Insurance in Brunei • American International Assurance (AIA) • Asia Life Assurance Society Limited • Great Eastern Life Assurance Co Ltd • AXA Insurance (B) Sdn Bhd • Borneo Insurance Sdn Bhd • Aiva Insurance Sdn Bhd
  23. 23. Faculty of Business & Management Sciences, UNISSA, Brunei Darussalam Takaful in Brunei •TAIB •Takaful Islam
  24. 24. Faculty of Business & Management Sciences, UNISSA, Brunei Darussalam Q?How it difference from insurance
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×