Shari’ah and ethical issues in the practice of modified wakalah model in family takaful

Takaful has been acknowledged as insurance which is in line with Shari’ah principles. Due to the prohibited elements such as interest, uncertainty and gambling in the insurance practices, Takaful has been introduced by the Muslim scholars. Takaful is one of the fast growing industries in Islamic f...

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Main Authors:	Htay, Sheila Nu Nu, Syed, Ahmed Salman
Format:	Article
Language:	English
Published:	Center for Promoting Ideas (CPI) 2013
Subjects:	HG1501 Banking
Online Access:	http://irep.iium.edu.my/32867/ http://irep.iium.edu.my/32867/ http://irep.iium.edu.my/32867/1/14_2.pdf

id	iium-32867
recordtype	eprints
spelling	iium-328672013-11-19T08:20:09Z http://irep.iium.edu.my/32867/ Shari’ah and ethical issues in the practice of modified wakalah model in family takaful Htay, Sheila Nu Nu Syed, Ahmed Salman HG1501 Banking Takaful has been acknowledged as insurance which is in line with Shari’ah principles. Due to the prohibited elements such as interest, uncertainty and gambling in the insurance practices, Takaful has been introduced by the Muslim scholars. Takaful is one of the fast growing industries in Islamic finance and it widely spreads into both Muslim and non-Muslim countries. The rapid growth of the industry does not mean that it is free from undesirable issues related to the Shari’ah and ethics. Therefore, the purpose of this paper is to highlight the Shari’ah and ethical issues in the practice of modified Wakalah model in family Takaful. This paper focuses on the issues arisen from the concept of Tabaru’, surplus distribution and agency problem. These issues might be the mismatch of the original concept of Islamic principles and the current needs of the contracts. This paper does not intent to provide the solution for the issues and hence, future research should focus on it. Center for Promoting Ideas (CPI) 2013-09 Article PeerReviewed application/pdf en http://irep.iium.edu.my/32867/1/14_2.pdf Htay, Sheila Nu Nu and Syed, Ahmed Salman (2013) Shari’ah and ethical issues in the practice of modified wakalah model in family takaful. International Journal of Business and Social Science, 4 (12). pp. 128-132. ISSN 2219-6021 (O), 2219-1933 (P) http://www.ijbssnet.com/journal/index/2134
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HG1501 Banking
spellingShingle	HG1501 Banking Htay, Sheila Nu Nu Syed, Ahmed Salman Shari’ah and ethical issues in the practice of modified wakalah model in family takaful
description	Takaful has been acknowledged as insurance which is in line with Shari’ah principles. Due to the prohibited elements such as interest, uncertainty and gambling in the insurance practices, Takaful has been introduced by the Muslim scholars. Takaful is one of the fast growing industries in Islamic finance and it widely spreads into both Muslim and non-Muslim countries. The rapid growth of the industry does not mean that it is free from undesirable issues related to the Shari’ah and ethics. Therefore, the purpose of this paper is to highlight the Shari’ah and ethical issues in the practice of modified Wakalah model in family Takaful. This paper focuses on the issues arisen from the concept of Tabaru’, surplus distribution and agency problem. These issues might be the mismatch of the original concept of Islamic principles and the current needs of the contracts. This paper does not intent to provide the solution for the issues and hence, future research should focus on it.
format	Article
author	Htay, Sheila Nu Nu Syed, Ahmed Salman
author_facet	Htay, Sheila Nu Nu Syed, Ahmed Salman
author_sort	Htay, Sheila Nu Nu
title	Shari’ah and ethical issues in the practice of modified wakalah model in family takaful
title_short	Shari’ah and ethical issues in the practice of modified wakalah model in family takaful
title_full	Shari’ah and ethical issues in the practice of modified wakalah model in family takaful
title_fullStr	Shari’ah and ethical issues in the practice of modified wakalah model in family takaful
title_full_unstemmed	Shari’ah and ethical issues in the practice of modified wakalah model in family takaful
title_sort	shari’ah and ethical issues in the practice of modified wakalah model in family takaful
publisher	Center for Promoting Ideas (CPI)
publishDate	2013
url	http://irep.iium.edu.my/32867/ http://irep.iium.edu.my/32867/ http://irep.iium.edu.my/32867/1/14_2.pdf
first_indexed	2023-09-18T20:47:28Z
last_indexed	2023-09-18T20:47:28Z
_version_	1777409770750214144

Shari’ah and ethical issues in the practice of modified wakalah model in family takaful

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