Applications of Malaysia deposit insurance corporation (MDIC) to takaful operators: an analysis from the shariah advisors’ perspective

The global takaful market is estimated by market analysts to reach a premium of U.S. $ 12.5 billion by 2015. Malaysia is considered the second largest takaful in the world with total asset of US$ 3.2 billion. One of the new innovations of takaful and insurance in Malaysia is Perbadanan Insurance Dep...

Full description

Bibliographic Details
Main Author:	Abdullah, Nurdianawati Irwani
Format:	Article
Language:	English
Published:	EBSCO Host 2012
Subjects:	HB126.4 Islamic Economics
Online Access:	http://irep.iium.edu.my/75919/ http://irep.iium.edu.my/75919/ http://irep.iium.edu.my/75919/1/IMBR%20dec2012.pdf

id	iium-75919
recordtype	eprints
spelling	iium-759192019-12-05T06:00:33Z http://irep.iium.edu.my/75919/ Applications of Malaysia deposit insurance corporation (MDIC) to takaful operators: an analysis from the shariah advisors’ perspective Abdullah, Nurdianawati Irwani HB126.4 Islamic Economics The global takaful market is estimated by market analysts to reach a premium of U.S. $ 12.5 billion by 2015. Malaysia is considered the second largest takaful in the world with total asset of US$ 3.2 billion. One of the new innovations of takaful and insurance in Malaysia is Perbadanan Insurance Deposit Malaysia (PIDM) which is also known internationally as the Malaysia Deposit Insurance Corporation (MDIC). The role of MDIC is to provide protection to owners of takaful certificate and to ensure the stability and confidence in the market by protecting policy holder (takaful certificate). Therefore, this study investigates the extent to which MDIC is relevant to takaful operators. Personal interviews are carried out with shariah advisers of takaful operators to deduce the actual practice, the ideal role and to gain access to the field of MDIC and its implications in Malaysia. The findings of this research indicate that MDIC is relevant to takaful operators and part of the regulations that should be supported and encouraged. Furthermore, the study also found that shariah advisers suggest Wakalah bi ajr as an alternative of kafalah-bi al-ajr by shifting the scheme to tabarru‘ model. In addition, the study found that the contribution paid should be charged to the participants’ fund; this is because the protection provided by MDIC is for the fund that belongs to the participants and takaful operators deemed to be wakeel (agent) only. EBSCO Host 2012-12 Article PeerReviewed application/pdf en http://irep.iium.edu.my/75919/1/IMBR%20dec2012.pdf Abdullah, Nurdianawati Irwani (2012) Applications of Malaysia deposit insurance corporation (MDIC) to takaful operators: an analysis from the shariah advisors’ perspective. Information Management and Business Review, 4 (12). pp. 615-624. ISSN 2220-3796 https://ojs.amhinternational.com/index.php/imbr/article/view/1020/1020
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HB126.4 Islamic Economics
spellingShingle	HB126.4 Islamic Economics Abdullah, Nurdianawati Irwani Applications of Malaysia deposit insurance corporation (MDIC) to takaful operators: an analysis from the shariah advisors’ perspective
description	The global takaful market is estimated by market analysts to reach a premium of U.S. $ 12.5 billion by 2015. Malaysia is considered the second largest takaful in the world with total asset of US$ 3.2 billion. One of the new innovations of takaful and insurance in Malaysia is Perbadanan Insurance Deposit Malaysia (PIDM) which is also known internationally as the Malaysia Deposit Insurance Corporation (MDIC). The role of MDIC is to provide protection to owners of takaful certificate and to ensure the stability and confidence in the market by protecting policy holder (takaful certificate). Therefore, this study investigates the extent to which MDIC is relevant to takaful operators. Personal interviews are carried out with shariah advisers of takaful operators to deduce the actual practice, the ideal role and to gain access to the field of MDIC and its implications in Malaysia. The findings of this research indicate that MDIC is relevant to takaful operators and part of the regulations that should be supported and encouraged. Furthermore, the study also found that shariah advisers suggest Wakalah bi ajr as an alternative of kafalah-bi al-ajr by shifting the scheme to tabarru‘ model. In addition, the study found that the contribution paid should be charged to the participants’ fund; this is because the protection provided by MDIC is for the fund that belongs to the participants and takaful operators deemed to be wakeel (agent) only.
format	Article
author	Abdullah, Nurdianawati Irwani
author_facet	Abdullah, Nurdianawati Irwani
author_sort	Abdullah, Nurdianawati Irwani
title	Applications of Malaysia deposit insurance corporation (MDIC) to takaful operators: an analysis from the shariah advisors’ perspective
title_short	Applications of Malaysia deposit insurance corporation (MDIC) to takaful operators: an analysis from the shariah advisors’ perspective
title_full	Applications of Malaysia deposit insurance corporation (MDIC) to takaful operators: an analysis from the shariah advisors’ perspective
title_fullStr	Applications of Malaysia deposit insurance corporation (MDIC) to takaful operators: an analysis from the shariah advisors’ perspective
title_full_unstemmed	Applications of Malaysia deposit insurance corporation (MDIC) to takaful operators: an analysis from the shariah advisors’ perspective
title_sort	applications of malaysia deposit insurance corporation (mdic) to takaful operators: an analysis from the shariah advisors’ perspective
publisher	EBSCO Host
publishDate	2012
url	http://irep.iium.edu.my/75919/ http://irep.iium.edu.my/75919/ http://irep.iium.edu.my/75919/1/IMBR%20dec2012.pdf
first_indexed	2023-09-18T21:47:23Z
last_indexed	2023-09-18T21:47:23Z
_version_	1777413540318019584

Applications of Malaysia deposit insurance corporation (MDIC) to takaful operators: an analysis from the shariah advisors’ perspective

Similar Items