A Comparison between the Capitalist and the Islamic Insurance with a Focus on Deficit and Surplus
By
ACKNOWLEDGEMENT
My thanks go out to all who have helped me complete this study and with whom this project may have not been possible. In particular, my gratitude goes out to friends, facilitator and family for extensive and helpful comments on early drafts. I am also deeply indebted to the authors who have shared my interest and preceded me. Their works provided me with a host of information to learn from and build upon, also served as examples to emulate.
DECLARATION
I [type your full first names & surname here], declare that the following dissertation/thesis and its entire content has been an individual, unaided effort and has not been submitted or published before. Furthermore, it reflects my opinion and take on the topic and is does not represent the opinion of the University.
Signature:
Dated:
TABLE OF CONTENTS
ACKNOWLEDGEMENTII
DECLARATIONIII
CHAPTER 01: INTRODUCTION1
References for Islamic Takaful1
Principles of Takaful2
Research Question3
Aims and Objectives3
Disposition4
CHAPTER 02: LITERATURE REVIEW5
Introduction5
Islamic Conceptions5
Riba Free Insurance (Takaful)6
Conventional Insurance Requirements6
Takaful7
Tabarru11
Mudaraba and Wakalah in takaful13
Islamic Insurance Products13
Family Takaful14
Life Insurance14
Participant's Special Account16
General Takaful16
Re-Takaful17
Insurance Governance19
CHAPTER 03: METHODOLOGY22
Introduction22
Qualitative Research22
Research Method and Design Appropriateness23
Informed Consent23
Confidentiality24
Validity24
Data Analysis25
Qualitative Data Analysis25
REFERENCES27
CHAPTER 01: INTRODUCTION
Takaful is an Islamic insurance concept, based on Islamic mou'amalat (banking), respecting the norms and rules of Islamic law. This concept has been practiced in various forms for over 1400 years. It comes from the Arabic word Kafala, which means "guaranteeing each other" or "joint guarantee". In principle, the Takaful system is based on mutual cooperation, responsibility, assurance, protection and assistance between groups or participants. It is a form of mutual insurance (Bagsiraj, 2002).
References for Islamic Takaful
These fundamentals are based on the sayings of Prophet Muhammad . The scholars of Islam have decided, from the hadiths and verses, there must be a concerted effort to apply the concept of Takaful as the best way to address these needs. Examples:
Principle of cooperation: help each other in al-Birr al-Taqwa (virtue, piety, righteousness), but not to help one another in sin and transgression (Al Ma'ida v. 2) (Hussain and Sherifa, 2002)
Allah will always help His servant as long as it will help others (Narrated by Imam Ahmed ibn Hanbal and Imam Abu Dawood)
Responsibility principle: it is the relationships and feelings of people of faith between them, as with the body: when one member is affected by pain, the whole body is affected. (Reported by Bukhari and Muslim)
Two true believers (Mou'min) are as a construction in which each part strengthens the other. (Reported by Bukhari and Muslim)
Principle of Mutual Protection: By my soul, which is under the power of Allah, no one will enter Paradise if he does not assist its neighbor in distress. (Narrated by Imam Ahmad ibn Hanbal) (Iqbal and Philip, 2005)
Principles of Takaful
The below mentioned are the principles of Takaful:
Purchasers of an insurance contract cooperate with each other for their common good. Each subscriber pays the premium to help those in need. Losses are divided and liabilities spread according to the system of "pooling". The uncertainty is eliminated by the ...