Shariah issues in takaful

This is a brief paper which seeks to highlight the features of the matrimonial law applicable in Sri Lanka as applied to persons professing Islam. It deals with the essentials of marriage and divorce with the focus on some gray areas which need to be considered by those who are entrusted with the task of reforming the law.

This paper aims to see how the concept and mechanism of sharing of risk on Takaful Insurance. Secondary data has been used such as books and journals of Takaful, daily news, and insurance policies. As an alternative form of conventional insurance-based insurance, Takaful is able to neutralize the contradictions of existing concepts in conventional insurance, so it is acceptable and not contrary to existing sharia principles. This study explains uncertainty that occurs in the future towards the soul as well as the asset requires people to be more alert about the risks that may arise. The need for it makes insurance a financial necessity in the context of minimizing possible risks. The risk that befell the participants of the insurance, not only borne by the company alone, but by all participants Takaful Insurance, this becomes one of the differentiators between Takaful with the conventional insurance.

Maslahah hierarchy shows that maqasid shari'ah must prioritize five things: religion, life, intellect, honour and property. Social responsibility also explained that each individual is responsible for the property to be maintained, managed, and developed. Takaful is one ofthe methods that can be used for this purpose based on the contract and the application of savings for self and for emergency usage on others. The objective of this paper is to compare between Takaful and conventional insurance in terms of concept, comparative advantage, and application in the market. The methodology of this article is through qualitative research based on document analysis on relevant literatures. The general findings of this article show that there are obvious differences between Takaful and conventional insurance in protecting individual and society.

Takaful is an alternative term used for ‘Islamic insurance’. It is aimed at social help and solidarity to mitigate the impact of losses. The takaful concept is aimed at eliminating riba (paying or receiving interest through
exchanging money for money with difference in time and amount), gharar (inappropriate risk, and excessive uncertainty in exchange contracts), and maysir (gambling and other games of chance). Most existing takaful business models are based on the concept of tabarru`. The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) in Shari`ah Standard No. 26(2) (hereinafter the Standard) describes Islamic insurance as “an agreement between persons who are exposed to risks to protect themselves against harm arising from risk by paying contributions on the basis of a commitment to donate”.

This paper analyses the contribution of preeminent Muslim scholar, Yūsuf Qaraḍāwī to the religion, especially in the area of Shariah and Fiqh. His active role in disseminating the knowledge of Shariah and  fiqh began when since he was just 17 years old. His major works including The Lawful and Prohibited in Islam, Fiqh al-Zakat and Fiqh of Minority have greatly contributed greatly to the progress of fiqh mu`āsir, putting him as one of the most influential Muslim in the world. He received many critical review over the years. Therefore, this paper analyses some of his fiqh works vis-à-vis the analytical reviews he received. It can be concluded that Qaraḍāwī has made a considerable effort to exercise ijtihād corresponding to current problem that is beneficial for Muslim worldwide. At the same time, he has called for renewal in ijtihād process and abandonment of religious extremism, religious neglect and blind imitation in legal rulings.

The purpose of this research is to analyze the impact of sharia competencies, Islamic compensation and Islamic Spiritual Intelligence of personal work performance at Bank Muamalat Branch Ternate. The data obtained in the research is primary data taken from questionnare were distributed to employees at Bank Muamalat Branch Ternate. Data analysis technique in this research using multiple linear regression analysis using SPSS version 16.0.The result of this research shows from all of three variables, Islamic spiritual intelligence is the only one that have significant effect on personal work performance of Bank Muamalat Branch Ternate

Takaful has become the alternative method of providing insurance services that is deemed acceptable for Muslims. This paper looks at the different views of Islamic scholars on conventional insurance and the legal and practical aspects of takaful insurance. It also looks at the different models used by takaful operators and analyses several issues which may still riddle takaful practice. It concludes by proffering suggestions and recommendations that may resolve issues that have been noticed. Keywords: Takaful , Islamic insurance, takaful models, issues in takaful.

The ijāra finance structure is currently the most frequently used sharīʿa-compliant instrument used in real estate financing. While the ijāra structure is legally sound and workable in commercial transactions, in a religious not-for-profit setting, it may expose religious institutions to substantial tax liability, from which they are otherwise exempt.

It is my distinct honor to present you Mr. M. Orhan Tarhan and publish here his – otherwise unpublished – article ‘The Holy Cow Democracy”. Few have Mr. Tarhan’s knowledge, life experience, perspicacity, and clarity; I believe all will see the current developments in Turkey better through the lines of this excellent paper.

Mr. M. Orhan Tarhan was born in Istanbul, Turkey, where he made his high school education in Turkey’s elite boarding school “Galatasaray”. He won a competitive examination that sent him to his chemical engineering education in Germany between 1937 and 1943. All his professional life he worked for steel industries, as operating engineer in a coke plant in Turkey and after 1953 as research engineer in charge of coke plants in the United States. He published several technical articles, 16 U.S. and foreign patents, and a book titled “Catalytic Reactor Design”. At Bethlehem Steel Corporation, where he worked for a quarter of a century, research engineers were trained continuously in technical report writing. After retiring in 1982, he did several years of consulting and he taught one semester of Catalytic Reactor Design at Lehigh University, Bethlehem, PA.

He learned French at 9, German at 16, and English at 24.

During his retirement he wrote articles in Turkish-American magazines on Turkey, on Turkish-Americans , and on the United States. At 2002, “The Turkish Times” stopped publication. At the urging of several of his readers, he started a newsletter that he is distributing by e-mail. He likes to hear comments on his articles.

Mr. Tarhan’s father was a class-mate of Mustafa Kemal Ataturk at the previous turn of the century at the General Staff School. They worried about the crumbling of the Ottoman Empire and tried to find out why Europe was flourishing.

They studied European history of the last three centuries and the French writers of the Enlightenment. They concluded, that to become survivable in the modern world, Turkey has to do everything Europe did during the last three centuries. They found also that Islam was part of the problem. After the Republic of Turkey was founded, Ataturk abolished the Caliphate, outlawed the Sharia part of the Koran, emancipated the women and changed the identity of Turkey to a Western nation. Mr. Tarhan lived during the wonderful years of Ataturk’s presidency and saw with his eyes how a backward, ignorant, Islamic nation was converted to a progressive, educated, laic, democratic nation.

Mr. Tarhan is the author of a newsletter titled “The Orhan Tarhan Letter” that is issued twice a month and is distributed by e-mail, The article called “The Holy Cow Democracy” is taken from the letter No.106.

تمثل المشروعات الصغيرة والمتوسطة إحدى القطاعات الاقتصادية التي تستحوذ • على اهتمام كبير من قبل دول العالم والمنظمات والهيئات الدولية والإقليمية، والباحثين، وذلك بسبب دورها المحوري في الإنتاج والتشغيل وإدرار الدخل، علاوة على دورها في تحقيق الأهداف الاقتصادية والاجتماعية.

Purpose
The concept of Takaful has a long history. It is linked with the era of Prophet Muhammad 1,400 years ago. The globalization and development of socio-economic systems have made business activities more complex in response to emerging human needs and requirements. Similarly, Takaful insurance has fully commercialized and become an important indicator of the international financial market. The purpose of this study is to understand the Takaful mechanism and progression of its procedures to date since its inception.
Design/methodology/approach
This study seeks to examine the origin, evolution and historical developments of Takaful mechanism, operations, models and governing framework with extant literature review from previous studies and current practices.
Findings
The modern Takaful insurance first began in Sudan back in 1979. The Takaful operations must abide by the Sharia laws and work under the supervision of the Sharia Supervisory Board. Since its evolution, Sharia scholars have introduced various Takaful models that are going to be explained in this study. Moreover, several Islamic organizations, including the “Islamic Financial Services Board” and the “Accounting and Auditing Organization for Islamic Financial Institutions,” have provided guidelines and supervision to develop and strengthen the Takaful industry further. The study acknowledges Takaful as a growing insurance industry with huge potential and promising future in both Pakistan and the international market.
Practical implications
During the analysis, various deficiencies and loopholes were identified, which are responsible for the unmatched growth of conventional insurance. They can be eliminated with the joint efforts of industrial players, Sharia scholars and Takaful insurance companies. Hence, Islamic scholars and academic researchers are encouraged to develop and modify the current practices of Takaful mechanism according to current market demands and consumer approach. The research efforts will help Takaful operators to develop more innovative Takaful products adhering Sharia compliance. Consequently, it will help to access more consumer market and further enhances the Takaful growth.
Originality/value
This study is an effort to provide a basic understanding of the mechanism of Takaful models. The study helps to comprehend how Takaful models have evolved and been modified over the course of time. Moreover, it provides a base for further development and improvement in current practices of Takaful models, which will result in increased progress for the Takaful industry.

Al-tabarru' and al-mudarabah are the two fundamentals on which Islamic insurance or takaful is constructed. Since the late 1970`s when it was first introduced the takaful industry has grown quite fast especially in countries of Muslim majority. Various products are offered both in the areas of family and general takaful, i.e. long and short terms insurance. The data in the current study are collected by means of a questionnaire administered on a sample of 100 respondents attempt to find out the relationship between understanding of the concept of takaful and participation in takaful schemes, gender, profession and income. The study concludes that there is no relationship between the understanding and the participation with the three variables but there is a positive relationship between understanding of takaful and participation in takaful schemes.

Islamic financial system presents a novel approach to the modern financial system with its procedures and applications. The underpinnings of Islamic financial system sharply contrast with the traditional financial system because it is developed outside the current financial system and a strong emphasis on common mutual benefits. This paper explains literature references from a series of papers which examined the evolution and emergence of Takaful (Islamic insurance). The study explores Takaful concept as an Islamic perspective of risk coverage which is an alternative to conventional insurance. The study also discusses Takaful structure, mechanism and elaborates how it differentiates from conventional insurance. Further, Takaful categories and Takaful models are explained which are being applied in the current Takaful market. The study concludes by exploring current Takaful market globally with reporting future prospects of Takaful and suggesting directions for its further sustainable growth.