Application of umra and ruqba in disbursement of family takaful benefit:An analysis from shariah perspective

The paper aims to analyse the validity of practicing umra and ruqba concepts in disbursement of family takaful benefit from the shariah perspective. In the current practice of takaful, the disbursement of family takaful benefit is subject to the demise of takaful certificate holder. Upon maturity of...

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Main Authors:	Rahman, Md. Habibur, Abdullah, Faruk, Osmani, Noor Mohammad
Format:	Article
Language:	English
Published:	USM, MALAYSIA 2019
Subjects:	HG Finance HG3368 Islamic Banking and Finance
Online Access:	http://irep.iium.edu.my/74276/ http://irep.iium.edu.my/74276/ http://irep.iium.edu.my/74276/1/Asian%20Academy%20of%20Management%20journal.pdf

id	iium-74276
recordtype	eprints
spelling	iium-742762019-08-27T07:55:17Z http://irep.iium.edu.my/74276/ Application of umra and ruqba in disbursement of family takaful benefit:An analysis from shariah perspective Rahman, Md. Habibur Abdullah, Faruk Osmani, Noor Mohammad HG Finance HG3368 Islamic Banking and Finance The paper aims to analyse the validity of practicing umra and ruqba concepts in disbursement of family takaful benefit from the shariah perspective. In the current practice of takaful, the disbursement of family takaful benefit is subject to the demise of takaful certificate holder. Upon maturity of the certificate, if the certificate holder is alive, he will enjoy takaful benefit but not the beneficiary or hibah recipient. Accordingly, he takes back the donation that he made earlier, which makes the arrangement contentious, as long as the Islamic value is concerned. To resolve this issue, the paper suggested that the takaful benefit could be disbursed based on umra and ruqba concepts as they are subject to the survival of the contracting parties. Umra and ruqba are valid provided that once the donation is executed, the donated object should never be returned to the donor. These concepts are appropriate for takaful because the beneficiary can enjoy takaful benefit only when the certificate holder dies before the maturity of certificate. Once the certificate holder dies, takaful benefit cannot be provided to him. The paper argues that the application of umra and ruqba concepts minimises the consequential issues that arise when takaful benefit is disbursed by nomination or inheritance or absolute hibah. Analysing the opinions of the classical Islamic jurists, the paper concludes that the application of umra and ruqba in disbursement of takaful benefit could be done with a structured checklist form. USM, MALAYSIA 2019-03 Article PeerReviewed application/pdf en http://irep.iium.edu.my/74276/1/Asian%20Academy%20of%20Management%20journal.pdf Rahman, Md. Habibur and Abdullah, Faruk and Osmani, Noor Mohammad (2019) Application of umra and ruqba in disbursement of family takaful benefit:An analysis from shariah perspective. Asian Academy of Management Journal, 24 (1). pp. 107-123. ISSN 2180-4184 http://web.usm.my/aamj/default.html
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HG Finance HG3368 Islamic Banking and Finance
spellingShingle	HG Finance HG3368 Islamic Banking and Finance Rahman, Md. Habibur Abdullah, Faruk Osmani, Noor Mohammad Application of umra and ruqba in disbursement of family takaful benefit:An analysis from shariah perspective
description	The paper aims to analyse the validity of practicing umra and ruqba concepts in disbursement of family takaful benefit from the shariah perspective. In the current practice of takaful, the disbursement of family takaful benefit is subject to the demise of takaful certificate holder. Upon maturity of the certificate, if the certificate holder is alive, he will enjoy takaful benefit but not the beneficiary or hibah recipient. Accordingly, he takes back the donation that he made earlier, which makes the arrangement contentious, as long as the Islamic value is concerned. To resolve this issue, the paper suggested that the takaful benefit could be disbursed based on umra and ruqba concepts as they are subject to the survival of the contracting parties. Umra and ruqba are valid provided that once the donation is executed, the donated object should never be returned to the donor. These concepts are appropriate for takaful because the beneficiary can enjoy takaful benefit only when the certificate holder dies before the maturity of certificate. Once the certificate holder dies, takaful benefit cannot be provided to him. The paper argues that the application of umra and ruqba concepts minimises the consequential issues that arise when takaful benefit is disbursed by nomination or inheritance or absolute hibah. Analysing the opinions of the classical Islamic jurists, the paper concludes that the application of umra and ruqba in disbursement of takaful benefit could be done with a structured checklist form.
format	Article
author	Rahman, Md. Habibur Abdullah, Faruk Osmani, Noor Mohammad
author_facet	Rahman, Md. Habibur Abdullah, Faruk Osmani, Noor Mohammad
author_sort	Rahman, Md. Habibur
title	Application of umra and ruqba in disbursement of family takaful benefit:An analysis from shariah perspective
title_short	Application of umra and ruqba in disbursement of family takaful benefit:An analysis from shariah perspective
title_full	Application of umra and ruqba in disbursement of family takaful benefit:An analysis from shariah perspective
title_fullStr	Application of umra and ruqba in disbursement of family takaful benefit:An analysis from shariah perspective
title_full_unstemmed	Application of umra and ruqba in disbursement of family takaful benefit:An analysis from shariah perspective
title_sort	application of umra and ruqba in disbursement of family takaful benefit:an analysis from shariah perspective
publisher	USM, MALAYSIA
publishDate	2019
url	http://irep.iium.edu.my/74276/ http://irep.iium.edu.my/74276/ http://irep.iium.edu.my/74276/1/Asian%20Academy%20of%20Management%20journal.pdf
first_indexed	2023-09-18T21:45:13Z
last_indexed	2023-09-18T21:45:13Z
_version_	1777413404413132800

Application of umra and ruqba in disbursement of family takaful benefit:An analysis from shariah perspective

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