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

Takaful is acquiring adaptation globally. Hypothetically, Takaful is recognized as mutual cooperation insurance, where the policy holders donate or contribute certain amount of money to a common pool or fund. However, Takaful has been acknowledged as insurance which is in line with Shari’ah principl...

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Main Authors:	Htay, Sheila Nu Nu, Salman, Syed Ahmed
Format:	Conference or Workshop Item
Language:	English English
Published:	2013
Subjects:	HG1501 Banking
Online Access:	http://irep.iium.edu.my/32892/ http://irep.iium.edu.my/32892/1/Wakalah_Model_and_shariah_Issues_2_Aug.pdf http://irep.iium.edu.my/32892/2/Wakalah.pdf

id	iium-32892
recordtype	eprints
spelling	iium-328922013-11-25T04:24:44Z http://irep.iium.edu.my/32892/ Shari’ah and ethical issues in the practice of modified wakalah model in family takaful Htay, Sheila Nu Nu Salman, Syed Ahmed HG1501 Banking Takaful is acquiring adaptation globally. Hypothetically, Takaful is recognized as mutual cooperation insurance, where the policy holders donate or contribute certain amount of money to a common pool or fund. However, 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. It is expected that the issues from this paper will be the interests of regulators, Takaful operators, participants and Shari’ah advisors. 2013-10 Conference or Workshop Item PeerReviewed application/pdf en http://irep.iium.edu.my/32892/1/Wakalah_Model_and_shariah_Issues_2_Aug.pdf application/pdf en http://irep.iium.edu.my/32892/2/Wakalah.pdf Htay, Sheila Nu Nu and Salman, Syed Ahmed (2013) Shari’ah and ethical issues in the practice of modified wakalah model in family takaful. In: 1st Insurance and Takaful International Symposium 201, 7-8 Oct 2013, Puri Pujangga, Universiti Kebangsaan Malaysia.
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English English
topic	HG1501 Banking
spellingShingle	HG1501 Banking Htay, Sheila Nu Nu Salman, Syed Ahmed Shari’ah and ethical issues in the practice of modified wakalah model in family takaful
description	Takaful is acquiring adaptation globally. Hypothetically, Takaful is recognized as mutual cooperation insurance, where the policy holders donate or contribute certain amount of money to a common pool or fund. However, 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. It is expected that the issues from this paper will be the interests of regulators, Takaful operators, participants and Shari’ah advisors.
format	Conference or Workshop Item
author	Htay, Sheila Nu Nu Salman, Syed Ahmed
author_facet	Htay, Sheila Nu Nu Salman, Syed Ahmed
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
publishDate	2013
url	http://irep.iium.edu.my/32892/ http://irep.iium.edu.my/32892/1/Wakalah_Model_and_shariah_Issues_2_Aug.pdf http://irep.iium.edu.my/32892/2/Wakalah.pdf
first_indexed	2023-09-18T20:47:30Z
last_indexed	2023-09-18T20:47:30Z
_version_	1777409773346488320

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

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