Transparency in the assessment of Takaful claims for construction works loss & damage
In the context of the construction industry, an alternative to the conventional insurance for works contracts is the Shariah compliant insurance otherwise known as takaful. Among the most frequently used takaful for construction works contracts is the Contractor’s All Risks (CAR) Takaful. Howe...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Universiti Sultan Azlan Shah
2016
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| Subjects: | |
| Online Access: | http://irep.iium.edu.my/51173/ http://irep.iium.edu.my/51173/ http://irep.iium.edu.my/51173/1/51173_Transparency_in_the_Assessment_of_Takaful.pdf |
| Summary: | In the context of the construction industry,
an alternative to the conventional insurance
for works contracts is the Shariah compliant
insurance otherwise known as takaful. Among
the most frequently used takaful for construction
works contracts is the Contractor’s All Risks
(CAR) Takaful. However, the future of CAR
Takaful may be affected should issues such
as marketing and clarification on how it
works including how claims are processed,
valued and compensation made are not made
know to Contractors and Clients. In fact,
previous studies have identified that issues
on transparency in CAR Takaful products is
among the major concerns expressed by the
Contractors and Clients. Consequently, a study
was conducted, the key objectives being to
establish understanding on the concept of
transparency in CAR Takaful claims and assess,
from the perspectives of the Contractors and
Clients, on whether the dealings in CAR Takaful
claims are considered transparent or otherwise.
The study was conducted principally via desk
research and interviews with representative
from takaful operators, Contractors and Clients
organizations. Key results from the study suggest
that transparency in CAR Takaful dealings is a
concern especially those related to compliance
with the Shariah and manner in which claims
are valued and compensation decided. Such
lack of transparency, if not addressed soonest
possible, may not augur well for the future of the CAR Takaful industry. |
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