Takaful (Islamic Insurance): When We Started and Where We are Now

Syed Ahmed Salman; Hafiz Majdi Ab. Rashid; Sheila Nu Nu Htay

doi:doi:10.11648/j.ijefm.s.2015030502.12

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Takaful (Islamic Insurance): When We Started and Where We are Now

Syed Ahmed Salman, Hafiz Majdi Ab. Rashid, Sheila Nu Nu Htay

Published in International Journal of Economics, Finance and Management Sciences (Volume 3, Issue 5-2)

Received: 28 April 2015 Accepted: 3 May 2015 Published: 21 August 2015

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Abstract

The idea and practice of Takaful is not new as it was practiced during the time of the Prophet Muhammad (PBUH) by its adoption of the concept of Aqilah. Due to the complex nature of business activities and evolving human needs, Takaful is now fully commercialised and is an important part of the financial markets. Since it is important in our daily life, we believe that it is necessary to highlight when and how Takaful started and how it has developed. By doing so, we will know that the practice of Takaful is inherited from the Prophet (PBUH) and we will better appreciate the contributions of Muslim scholars to revitalize this industry. The discussion of this paper focuses on the historical development of Takaful, its available products, models, and regulatory framework. The practice of insurance was officially prohibited in 1976. Since then, Takaful has been introduced as Shari’ah compliant insurance product. Currently, there are 174 Takaful operators in the key Takaful markets and a variety of Takaful products are available to cater the market need. To achieve the sustainable development of the Takaful industry in the conventional world, Shari’ah scholars have developed several Takaful models. In addition, international organisations such as the Islamic Financial Services Board and the Accounting and Auditing Organisation for Islamic Financial Institutions are supporting the industry by providing guidelines. This paper acknowledges that the Takaful industry is one of the fastest growing financial industries and current loopholes can be improved upon jointly by the industrial players, Shari’ah advisors and internal organisations

Published in	International Journal of Economics, Finance and Management Sciences (Volume 3, Issue 5-2) This article belongs to the Special Issue Islamic Finance System and Economic Growth: Theory and Empirical Studies
DOI	10.11648/j.ijefm.s.2015030502.12
Page(s)	7-15
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Insurance, Takaful, Products, Models

References

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[5]	Abdullah, N. I. (2012). Analysis of Demand for Family Takaful and Life Insurance: A Comparative Study in Malaysia. Journal of Islamic Economics, Banking and Finance, 68 Vol. 8 No. 4, Oct – Dec.
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[10]	Matsawali, M. S., Abdullah, M. F., Ping, Y. C., Abidin, S. Y., Zaini, M. M., Ali, H. M., & Yaacob, H. (2012). A Study on Takaful and Conventional Insurance Preferences: The Case of Brunei.
[11]	Billah, Mohd Ma’sum. (2003). Islamic and Modern Insurance principles and practices. Malaysia: Ilmiah Publishers.
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[20]	Onagun, A. I., & Ismail, A. (2011). Solvency of Takaful Fund: A Case of Subordinated Qard. In 2nd International Conference on Business and Economic Research (2nd ICBER 2011) Proceeding. Conference Master Resources.
[21]	Htay, S. N. N. Shaharuddin, W. R., Zahirah, W. R. & Amin, H. (2012). Practices of Insurance Operators in Malaysia: Conventional vs. Unconventional Life Insurance. Journal of Islamic Banking & Finance, 29(3).
[22]	Islamic financial services board standard on solvency requirements for takaful (Islamicinsurance) undertakings (2010). Retrieved January 21st, 2012. http:// www.ifsb. org/standard/ifsb11%20%20standard%20on%20solvency%20requirements%20for%20takaful%2%28islamic%20insurance%29%20undertakings.df.
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APA Style

Syed Ahmed Salman, Hafiz Majdi Ab. Rashid, Sheila Nu Nu Htay. (2015). Takaful (Islamic Insurance): When We Started and Where We are Now. International Journal of Economics, Finance and Management Sciences, 3(5-2), 7-15. https://doi.org/10.11648/j.ijefm.s.2015030502.12

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ACS Style

Syed Ahmed Salman; Hafiz Majdi Ab. Rashid; Sheila Nu Nu Htay. Takaful (Islamic Insurance): When We Started and Where We are Now. Int. J. Econ. Finance Manag. Sci. 2015, 3(5-2), 7-15. doi: 10.11648/j.ijefm.s.2015030502.12

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AMA Style

Syed Ahmed Salman, Hafiz Majdi Ab. Rashid, Sheila Nu Nu Htay. Takaful (Islamic Insurance): When We Started and Where We are Now. Int J Econ Finance Manag Sci. 2015;3(5-2):7-15. doi: 10.11648/j.ijefm.s.2015030502.12

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@article{10.11648/j.ijefm.s.2015030502.12,
  author = {Syed Ahmed Salman and Hafiz Majdi Ab. Rashid and Sheila Nu Nu Htay},
  title = {Takaful (Islamic Insurance): When We Started and Where We are Now},
  journal = {International Journal of Economics, Finance and Management Sciences},
  volume = {3},
  number = {5-2},
  pages = {7-15},
  doi = {10.11648/j.ijefm.s.2015030502.12},
  url = {https://doi.org/10.11648/j.ijefm.s.2015030502.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.s.2015030502.12},
  abstract = {The idea and practice of Takaful is not new as it was practiced during the time of the Prophet Muhammad (PBUH) by its adoption of the concept of Aqilah. Due to the complex nature of business activities and evolving human needs, Takaful is now fully commercialised and is an important part of the financial markets. Since it is important in our daily life, we believe that it is necessary to highlight when and how Takaful started and how it has developed. By doing so, we will know that the practice of Takaful is inherited from the Prophet (PBUH) and we will better appreciate the contributions of Muslim scholars to revitalize this industry. The discussion of this paper focuses on the historical development of Takaful, its available products, models, and regulatory framework. The practice of insurance was officially prohibited in 1976. Since then, Takaful has been introduced as Shari’ah compliant insurance product. Currently, there are 174 Takaful operators in the key Takaful markets and a variety of Takaful products are available to cater the market need. To achieve the sustainable development of the Takaful industry in the conventional world, Shari’ah scholars have developed several Takaful models. In addition, international organisations such as the Islamic Financial Services Board and the Accounting and Auditing Organisation for Islamic Financial Institutions are supporting the industry by providing guidelines. This paper acknowledges that the Takaful industry is one of the fastest growing financial industries and current loopholes can be improved upon jointly by the industrial players, Shari’ah advisors and internal organisations},
 year = {2015}
}

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TY  - JOUR
T1  - Takaful (Islamic Insurance): When We Started and Where We are Now
AU  - Syed Ahmed Salman
AU  - Hafiz Majdi Ab. Rashid
AU  - Sheila Nu Nu Htay
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DO  - 10.11648/j.ijefm.s.2015030502.12
T2  - International Journal of Economics, Finance and Management Sciences
JF  - International Journal of Economics, Finance and Management Sciences
JO  - International Journal of Economics, Finance and Management Sciences
SP  - 7
EP  - 15
PB  - Science Publishing Group
SN  - 2326-9561
UR  - https://doi.org/10.11648/j.ijefm.s.2015030502.12
AB  - The idea and practice of Takaful is not new as it was practiced during the time of the Prophet Muhammad (PBUH) by its adoption of the concept of Aqilah. Due to the complex nature of business activities and evolving human needs, Takaful is now fully commercialised and is an important part of the financial markets. Since it is important in our daily life, we believe that it is necessary to highlight when and how Takaful started and how it has developed. By doing so, we will know that the practice of Takaful is inherited from the Prophet (PBUH) and we will better appreciate the contributions of Muslim scholars to revitalize this industry. The discussion of this paper focuses on the historical development of Takaful, its available products, models, and regulatory framework. The practice of insurance was officially prohibited in 1976. Since then, Takaful has been introduced as Shari’ah compliant insurance product. Currently, there are 174 Takaful operators in the key Takaful markets and a variety of Takaful products are available to cater the market need. To achieve the sustainable development of the Takaful industry in the conventional world, Shari’ah scholars have developed several Takaful models. In addition, international organisations such as the Islamic Financial Services Board and the Accounting and Auditing Organisation for Islamic Financial Institutions are supporting the industry by providing guidelines. This paper acknowledges that the Takaful industry is one of the fastest growing financial industries and current loopholes can be improved upon jointly by the industrial players, Shari’ah advisors and internal organisations
VL  - 3
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Author Information

Syed Ahmed Salman

Institute of Islamic Banking and Finance, International Islamic university Malaysia, Kuala Lumpur, Malaysia
Hafiz Majdi Ab. Rashid

Kulliyyah of Economics and Management Sciences in International Islamic University Malaysia, Kuala Lumpur, Malaysia
Sheila Nu Nu Htay

International Council of Islamic Finance Educators Malaysia, Mandalay, Myanmar

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APA Style

Syed Ahmed Salman, Hafiz Majdi Ab. Rashid, Sheila Nu Nu Htay. (2015). Takaful (Islamic Insurance): When We Started and Where We are Now. International Journal of Economics, Finance and Management Sciences, 3(5-2), 7-15. https://doi.org/10.11648/j.ijefm.s.2015030502.12

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ACS Style

Syed Ahmed Salman; Hafiz Majdi Ab. Rashid; Sheila Nu Nu Htay. Takaful (Islamic Insurance): When We Started and Where We are Now. Int. J. Econ. Finance Manag. Sci. 2015, 3(5-2), 7-15. doi: 10.11648/j.ijefm.s.2015030502.12

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AMA Style

Syed Ahmed Salman, Hafiz Majdi Ab. Rashid, Sheila Nu Nu Htay. Takaful (Islamic Insurance): When We Started and Where We are Now. Int J Econ Finance Manag Sci. 2015;3(5-2):7-15. doi: 10.11648/j.ijefm.s.2015030502.12

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@article{10.11648/j.ijefm.s.2015030502.12,
  author = {Syed Ahmed Salman and Hafiz Majdi Ab. Rashid and Sheila Nu Nu Htay},
  title = {Takaful (Islamic Insurance): When We Started and Where We are Now},
  journal = {International Journal of Economics, Finance and Management Sciences},
  volume = {3},
  number = {5-2},
  pages = {7-15},
  doi = {10.11648/j.ijefm.s.2015030502.12},
  url = {https://doi.org/10.11648/j.ijefm.s.2015030502.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.s.2015030502.12},
  abstract = {The idea and practice of Takaful is not new as it was practiced during the time of the Prophet Muhammad (PBUH) by its adoption of the concept of Aqilah. Due to the complex nature of business activities and evolving human needs, Takaful is now fully commercialised and is an important part of the financial markets. Since it is important in our daily life, we believe that it is necessary to highlight when and how Takaful started and how it has developed. By doing so, we will know that the practice of Takaful is inherited from the Prophet (PBUH) and we will better appreciate the contributions of Muslim scholars to revitalize this industry. The discussion of this paper focuses on the historical development of Takaful, its available products, models, and regulatory framework. The practice of insurance was officially prohibited in 1976. Since then, Takaful has been introduced as Shari’ah compliant insurance product. Currently, there are 174 Takaful operators in the key Takaful markets and a variety of Takaful products are available to cater the market need. To achieve the sustainable development of the Takaful industry in the conventional world, Shari’ah scholars have developed several Takaful models. In addition, international organisations such as the Islamic Financial Services Board and the Accounting and Auditing Organisation for Islamic Financial Institutions are supporting the industry by providing guidelines. This paper acknowledges that the Takaful industry is one of the fastest growing financial industries and current loopholes can be improved upon jointly by the industrial players, Shari’ah advisors and internal organisations},
 year = {2015}
}

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TY  - JOUR
T1  - Takaful (Islamic Insurance): When We Started and Where We are Now
AU  - Syed Ahmed Salman
AU  - Hafiz Majdi Ab. Rashid
AU  - Sheila Nu Nu Htay
Y1  - 2015/08/21
PY  - 2015
N1  - https://doi.org/10.11648/j.ijefm.s.2015030502.12
DO  - 10.11648/j.ijefm.s.2015030502.12
T2  - International Journal of Economics, Finance and Management Sciences
JF  - International Journal of Economics, Finance and Management Sciences
JO  - International Journal of Economics, Finance and Management Sciences
SP  - 7
EP  - 15
PB  - Science Publishing Group
SN  - 2326-9561
UR  - https://doi.org/10.11648/j.ijefm.s.2015030502.12
AB  - The idea and practice of Takaful is not new as it was practiced during the time of the Prophet Muhammad (PBUH) by its adoption of the concept of Aqilah. Due to the complex nature of business activities and evolving human needs, Takaful is now fully commercialised and is an important part of the financial markets. Since it is important in our daily life, we believe that it is necessary to highlight when and how Takaful started and how it has developed. By doing so, we will know that the practice of Takaful is inherited from the Prophet (PBUH) and we will better appreciate the contributions of Muslim scholars to revitalize this industry. The discussion of this paper focuses on the historical development of Takaful, its available products, models, and regulatory framework. The practice of insurance was officially prohibited in 1976. Since then, Takaful has been introduced as Shari’ah compliant insurance product. Currently, there are 174 Takaful operators in the key Takaful markets and a variety of Takaful products are available to cater the market need. To achieve the sustainable development of the Takaful industry in the conventional world, Shari’ah scholars have developed several Takaful models. In addition, international organisations such as the Islamic Financial Services Board and the Accounting and Auditing Organisation for Islamic Financial Institutions are supporting the industry by providing guidelines. This paper acknowledges that the Takaful industry is one of the fastest growing financial industries and current loopholes can be improved upon jointly by the industrial players, Shari’ah advisors and internal organisations
VL  - 3
IS  - 5-2
ER  -

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