A Glance on Shariah Basis of Takaful (Islamic Insurance)
Journal Title: Saudi Journal of Business and Management Studies - Year 2017, Vol 2, Issue 11
Abstract
Abstract:This is a doctrinal research on the Shariah basis of takaful (Islamic Insurance). The research reveals that that takaful has basis in ancient Arabia in the system of “Aqilah” which involves mutual assistance. It can also be traced down in the Sunnah of the Holy Prophet (peace and blessings of Allah upon him) and also his companions. Moreover, a study of the primary sources for Muslims (i.e. the Qur’an and the Sunnah), indicates that members of the first Islamic community effectively applied systems of cooperative risk sharing, long before the beginning of takaful practices. Additionally, in takaful, contributions (premiums) are paid on donation (tabarru) basis, thus the element of gharar is totally avoided. Again, takaful is based on various transactions accepted by the Shariah. Essentially, the contemporary Islamic scholars mentioned that Mudarabah or wakalah or waqf or a combination of the three models is the most appropriate Islamic contracts which should be employed in managing takaful business. Furthermore, Islam does not prohibit accepting a good opinion from others, if it proves to be beneficial. Moreover, takaful shares same philosophy with insurance which is mutual cooperation between members for the sake of mutual cooperation and protection. The idea has been realized from the understanding of how Allah wants Muslims to cooperate in achieving the Ummah’s interest. Takaful is an example of how Islamic Shariah can help to improve welfare of the Ummah and create new socio-economic mechanism based on equity, justice and fair play. Keywords:Insurance, takaful, tabarru (donation), Aqilah, takaful benefits
Authors and Affiliations
Yusuf Sani Abubakar, AhamadFaosiy Ogunbado, MpawenimanaAbdallah Saidi
Keywords
Related Articles
- EP ID EP395941
- DOI -
- Views 128
- Downloads 0
Measurements and Determinants of Productivity in Nigeria: A Historical Perspective
Abstract:Scholars observes a sharp decline in the research productivity of academics in terms of the number of articles published in Nigeria from 1980-1989 and 1990-1999 based on an analysis of 21 core Nigerian Library a...
Tiatr: A New Form of Entrepreneurship in Goa – Problems and Prospects
Abstract: Tiatr, which has a history of more than 100 years, is a type of musical theatre popular in the state of Goa on the West coast of India as well as in Mumbai and with expatriate communities in the Middle East, Lo...
How Significant Healthiness is in Personnel Proficiency, Productivity, Prosperity
Abstract:Article revolves around the conspectus accentuating healthiness, quest significance of robustness in workforce proficiency, productivity and prosperity. Descriptive multination study articulated considering seco...
The Effect of Bioenergy and Pollution on Economy of Pakistan
Abstract: This paper investigates the Effect of Bioenergy and pollution on economy of Pakistan. Unit root and integration tests have been used to check unit root properties and long-run relationship for the times of 2001...
The Impact of Managerial 5C’s on Efficient Hospital Administration (EHA) in Providing quality care to patients
Abstract: Administration on a planned and scientific basis is necessary for the smooth running of every institution. A hospital is no exception which requires a much better fundamental rule. Administration plays a vital...