INTRODUCTION - The takaful system is still in the process of evolving and expanding. - Similar to Islamic banking industry, Takaful is also subjected to many issues. - The issues arise may affect the growth and development of Takaful industry. ISSUE 1 : QARD FOR RISK FUND Question : “Should qard be given from shareholders’ fund in order to cover the deficit of the risk fund?” Answer : - S 95 of IFSA stated that it is compulsory to provide Qard in the event of deficit of the risk fund. - On the basis to solve the solvency issue and to ensure the longevity of Takaful operator. ISSUE 2 : MRRT COVERAGE FOR CONVENTIONAL HOUSING LOAN Question : “Is it Shariah compliant for Takaful operator to cover MRTT for conventional housing loan?” Answer : Permissible, as long as the MRTT coverage only cover the principal amount and not the interest amount. CONCLUSION - The takaful system is still in the process of evolving with a number of issues raised by various Shariah scholars. - It is important to eliminate or reduce all the issues that may affect the development of Takaful industry. - Therefore, more discussion with regard to the takaful issues should be done.

1. IFE 790 :
SHARIAH GLOBAL ISSUES IN ISLAMIC FINANCE
PRESENTED BY :
WAN NOOR FAZIHA BINTI ISA (2015807044)
PREPARED FOR :
DR. MOHAMMAD FIRDAUS MOHAMMAD HATTA
ISSUES IN TAKAFUL
ARSHAD AYUB GRADUATE BUSINESS SCHOOL
UNIVERSITI TEKNOLOGI MARA
AA706 : MASTERS IN ISLAMIC BANKING AND FINANCE

2. PRESENTATION OUTLINE
INTRODUCTION
CONCLUSION
ISSUE : QARD FOR RISK FUND
ISSUE : TAKAFUL COVERAGE FOR LOAN

3. INTRODUCTION
 The takaful system is still in the process of
evolving and expanding.
 Similar to Islamic banking industry, Takaful
is also subjected to many issues.
 The issues arise may affect the growth and
development of Takaful industry.

4. ISSUE :
QARD FOR RISK FUND

5. ISSUE : QARD FOR RISK FUND
“Should qard be given from shareholders’ fund in
order to cover the deficit of the risk fund?”
 S 95 of IFSA stated that it is compulsory to provide
Qard in the event of deficit of the risk fund.
 On the basis to solve the solvency issue and to
ensure the longevity of Takaful operator.

6. ISSUE :
TAKAFUL COVERAGE FOR LOAN

7. ISSUE : MRTT COVERAGE FOR
CONVENTIONAL LOAN
“Is it Shariah compliant for Takaful operator to
cover MRTT for conventional housing loan?”
Permissible, as long as the MRTT coverage
only cover the principal amount and not the
interest amount.

8. CONCLUSION
 The takaful system is still in the process of evolving
with a number of issues raised by various Shariah
scholars.
 It is important to eliminate or reduce all the issues
that may affect the development of Takaful
industry.
 Therefore, more discussion with regard to the
takaful issues should be done.

9. THANK YOU…