Takaful (islamic Insurance)

The aim of this research is to examine the factors affecting adoption of Takaful (Islamic Insurance) in the Maldives. Descriptive and explanatory research design was adopted in this research and a cross sectional survey methods using a survey questionnaire was used. The questionnaire was developed based on past literature and a pilot test was conducted to check normality, reliability and validity of the scale. The dependent variable used in this research was Adoption of Takaful Insurance. While the independent variables were Awareness, Relative Advantage, Compatibility, Social Influence and Attitude.The questionnaire contained 32 items with 7 point Likert scale, 1 being strongly disagree and 7 being strongly agree. A sample of 340 respondents in Male', capital city of the Maldives were selected using convenient sampling. The collected data was analysed using descriptive means and regression through SPSS 21.This research found that Attitude and Compatibility have a positive and significant influence on Adoption of Takaful. However this research did not find any significant impact of Awareness, Relative Advantage and Social Influence on adoption of Takaful. This research is very beneficial for those who works in Insurance industry , especially in market where Muslims are dominant, such as Maldives. This research finding could be used to design their marketing campaigns and also allocating resources

Takaful (Islamic insurance) has been widely accepted as an alternative to conventional insurance and offered in many Muslim and non-Muslim countries. The unique feature of Takaful is that is suitable and acceptable for anyone regardless of the religion to our surprise, Takaful has not been introduced in India. India has the third largest Muslim population after Indonesia and Pakistan and second largest population after China. In terms of economic development, India's GDP growth rate is 6.3% and it is expected that in coming years and it is believed that India will be one of the leading countries for the world economy. Thus, the objective is to examine the viability of Takaful in India by using SWOT analysis approach. Questionnaire has been distributed to both Muslim and non-Muslims to find out the awareness, acceptability, prospects and challenges of Takaful products. Interviews have been conducted to examine the opinions of ten insurance operators, fifteen Shari'ah advisors and five consultants regarding the prospects and challenges of introducing Takaful in India. The findings from 333 respondents show that awareness of Takaful is still at the minimum level. However, they are willing to participate if Takaful is offered in India. In addition, the findings of the interviews highlight that the Takaful has a good potential in India. However, it can be offered if the government supports it. Due to time limitation, the opinion of the regulators has not been examined and thus, future research should focus on it.

Takaful business is a kind of insurance activity within the framework of Shari'ah. To be Shari'ah compliant Takaful operator, it needs to consider not only on the conventional aspect like conventional insurance, but also must take into account the Shari'ah requirement. Some of the Shari'ah requirement is avoiding interest, uncertainty, gambling and prohibited elements. Thus, the operating activities of Takaful operators are not straight forward and simple, compared to the conventional counterpart. Thus, the objectives of this paper are to highlight the current issues in Takaful industry and to provide the recommendation for future research. The contemporary issues in Takaful are due to the combined nature of profit-motivation and religious motive. The issues highlighted in this paper will be the interest of all the related parties, especially to the regulators for the development of future rules and regulation.

Some muslim scholars tend to suggest that waqf model is the best model to be applied in the operation of a modern takaful institution. This assignment will explained clearly what is the modus operandi of this model and what are the arguments forwarded by the scholars to support and reject this model. At the end of this paper, we will also revealed some countries that have been applied this takaful waqf model.

Takaful in Malaysia is new industry emerged for the last decades and became popular in the world market today, since its new and passed away different stages and still in progress to solve some main issues and conflict arisen in the developing stage. Conflict and legal issue is one of the issues among other related to the Takaful or Islamic Insurance which is not fully solved but some significant effort paid to eliminate these problems. Malaysia Takaful Act 1984 is the first act governed by Malaysia Takaful industries. This Act is not comprehensive principles because still relies on other established Acts. Malaysia now seems to be the best country hopes to succeed the practice of dual system of Takaful/Insurance in terms of others.

Sustainable development is not a new concept to Islam, sustainable development principles have existed for centuries in the Holy Qur'an and the Hadith. However, the transformation of the society and the world's economy on a sustainable basis is one of the most significant challenges in the 21st century. This implies that one of human kind's greatest challenge in this century is to ensure sustainable, just and balanced development because the needs of the current and future generations cannot be met unless there is respect for natural system and protecting core economic, social and environmental values. The Islamic perspective embraces that everything on earth is created for humanity and God awards it to people. Islam allows the use of the natural environment without involving unnecessary destruction. Shari'ah views that human activities should support environment, and protection of people's rights, and needs ensuring that human activities do not compromise the essentials of social, economic and natural systems either now or in the future. However, the paper provides a model of Maqasid al-Shari'ah as a basis of sustainable development, a model that's centered on the notion of human dignity which is based on the six pillars that uphold dignity: justice, intellectual knowledge and education, social welfare, human stewardship of natural resources, wealth and economic activities, and Public interest. Sustainable development in the context of Islam is taken as an opportunity to refresh the relationship between human being and environment. This paper argues that the Islamic approach is more agreeable to environmental protection and concludes that issues surrounding sustainable development have moral, ethical, social, and political complexities and that economics or economists alone cannot resolve the problem.

Insurance in Islam is essentially a concept of mutual help. Insurance business under conventional system is based on uncertainty, which is prohibited in Islamic society under Islamic principles. So there is need to clear the difference between the conventional insurance and the Islamic insurance. A rich literature also describes such differences but the present article addresses the differences based on conceptual and operational framework.

This paper examines the contemporary issue faced by the Islamic insurance (takaful) industry in Malaysia. The paper will then try to highlight the Shariah issues in the current practice of the takaful industry and takaful products. Therefore, the paper tries to critically analyses previous articles regarding the topic of takaful. Moreover, the paper would be a useful reference for any researcher who is researching the Shariah issues relating to takaful. Besides, the result of the paper would provide insight into how the Malaysian takaful industry and the takaful industry globally could improve their business operation model. However, the finding may be limited because the paper only concentrates on the Malaysian takaful industry.

Takaful is Islamic Insurance which is the most appropriate substitute of the
conventional insurance for individuals and financial institutions. It is based on the
concept of cooperation and mutual assistance which is supposed to function in line
with principles of Islamic Law (Shari’ah). Takaful is being widely used by several
banks all over the world to assist their customers who are paying attention to have
better insurance coverage under Islamic features of insurance.
There are several studies which describes the difference between Takaful
insurance and conventional insurance. Most of the conducted research focused either
on theoretical aspects of Takaful Insurance or comparative analysis between Takaful
companies itself except few comparative studies between two industries in a whole.
This study is based on explorative analysis of Takaful insurance and
conventional insurance where it distinguishes by an attempt to analyze Takaful Health
insurance in comparison with conventional health insurance. The purpose of the
current study is to establish Takaful is a viable alternative and is more preferable than
conventional insurance by exploring the factors like methods of operation,
governance, profit sharing mechanism, risk assurance, responsibility and role of
policy holders, extend of benefits, coverage, premiums, regulations and conditions.
The data has been taken from official websites and brochures of two leading
insurance companies operating in Takaful industry (namely SALAMA-Islamic Arab
Insurance) and conventional health insurance for conducting this study.
My study begins with an introduction to concept of insurance its origin,
development and general principles followed by description of concept of Takaful
insurance, its meaning, origin, evolution as an alternative to conventional insurance
in late 19th century and operational mechanisms applied. The second chapter consists of methodology of research, objectives, scope and limitation and review of previous
studies in areas related to the topic. The third chapter gives a consolidated description
of industry profiles and company profiles of conventional and Takaful insurances.
The final chapter analyzes conceptual and operational differences between Takaful
insurance and conventional insurance which is followed by comparative study of
health insurance services offered by companies from both Takaful and conventional
industry.
The overall result shows that Takaful Health Insurance Company performs
well and is more preferable and equitable than conventional insurance from the aspect
of benefits and coverage, social wellbeing and solidarity. Hence it is observed that Takaful products are enough capable of being a good alternative and competitive
opponent in insurance industry.

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.

The idea and practice of Takaful is not new as it was practiced during the time of the Prophet Muhammad (PBUH) by its adoption of the concept of Aqilah. Due to the complex nature of business activities and evolving human needs, Takaful is now fully commercialised and is an important part of the financial markets. Since it is important in our daily life, we believe that it is necessary to highlight when and how Takaful started and how it has developed. By doing so, we will know that the practice of Takaful is inherited from the Prophet (PBUH) and we will better appreciate the contributions of Muslim scholars to revitalize this industry. The discussion of this paper focuses on the historical development of Takaful, its available products, models, and regulatory framework. The practice of insurance was officially prohibited in 1976. Since then, Takaful has been introduced as Shari’ah compliant insurance product. Currently, there are 174 Takaful operators in the key Takaful markets and a variety of Takaful products are available to cater the market need. To achieve the sustainable development of the Takaful industry in the conventional world, Shari’ah scholars have developed several Takaful models. In addition, international organisations such as the Islamic Financial Services Board and the Accounting and Auditing Organisation for Islamic Financial Institutions are supporting the industry by providing guidelines. This paper acknowledges that the Takaful industry is one of the fastest growing financial industries and current loopholes can be improved upon jointly by the industrial players, Shari’ah advisors and internal organisations.
Keywords
Insurance, Takaful, Products, Models

The research investigates the Sharīʿah compliance of the pricing elements used in family takāful products. The reviewed literature has revealed a great deal of emphasis on the Sharīʿah aspects of the takāful contract, distribution of surplus, models used, incorporating waqf in takāful, and the relationship among the parties. Other research has focused on the operational and technical aspects of takāful such as underwriting, pricing, reserving and risk management. None of these references has addressed the Sharīʿah compliance of the pricing elements of family takāful products. That is the research gap addressed in this paper.
In addressing it, the paper builds a fundamental framework based on the following three notions:
1 The pricing methodologies of insurance and takāful are similar despite the differences between their contracts and objectives.
2 The pricing elements need Sharīʿah investigation and substantiation in view of some concerns raised by industry experts and Sharīʿah scholars about the unfairness of certain underwriting and pricing elements.
3 The price in insurance and takāful is commensurate with the nature of the risk, the sum covered and the estimated time of the risk occurrence.

The research finds that since insurance and takāful cross in the area of pricing, takāful has adopted actuarial practices that use assumptions based on best estimate. All jurisdictions of insurance and takāful emphasize that pricing should be adequate, fair and responsive to the economic environment. However, the regulatory framework for pricing is still lagging in the takāful market.

The research deciphers the components of pricing, focusing only on the assumptions of mortality, morbidity, investment return, interest rate and time value of money. The remaining pricing elements such as risk discount rate, lapse basis and profit loading are beyond the scope of this research as they have not triggered any Sharīʿah issue in the eyes of the authors. The following summarises the key findings:
1. As for mortality and morbidity, the research discovers that these two assumptions are Sharīʿah compliant based on the principles of ibāḥah (permissibility), maṣlaḥah (public interest), istiqrāʾ (induction) and ʿurf (custom). Despite being predictive in nature, the statistically proven tables of mortality and morbidity are deemed the best estimates of the insured’s time of death and injury.
2. As for investment returns as a pricing element, the research acknowledges the cash flow method, which prices products at a loss in order to recoup the profitable rate from future investment returns. If profitable, the investment return would offset any underwriting loss. However, the research raises a concern on the repercussions of investment losses. While the participant may not be very much concerned about profits in non-unitised takāful funds, the shareholders’ losses in the same funds may affect the solvency of the takāful funds, let alone the expected profitability. This may amount to an unfair arrangement for the shareholders that the regulators may have to address.
3. The assumptions of inflation and interest rates are also used, especially in the valuation of assets. Both function within the concept of the time value of money; therefore, this research has discussed whether the concept is Sharīʿah compliant. In this regard, the authors observe that time value of money is used in both contracts of exchange and contracts of donations. In contracts of exchange, the time value of money is inherent in some sales such as bayʿ bi thaman ājil (deferred sale), bayʿ al-taqsīṭ (sale by instalment) and bayʾʿatayn  fī bayʿah (two sales in one). In contracts of tabarruʿ, the donation can still be calculated based on the time value of money if there are future cash flows. Both partake in the time value of money from the technical aspect only.

Other assumptions such as health condition are found to be Sharīʿah compliant despite some industry experts’ opinion that the existing underwriting process (which affects pricing) is not in line with the spirit of taʿāwun or mutual cooperation. However, regarding consideration of the family medical history of the participant, no consensus on its fairness and Sharīʿah compliance has been garnered. Still some Sharīʿah scholars are not quite satisfied that the participant should be arbitrarily charged a loading for his/her family medical history. Concurring with this observation, the researchers recommend a regulatory amendment to this consideration. However, the issue is still open for further Sharīʿah investigation to arrive at a Sharīʿah ruling on the matter. 

Since fees and charges are all imbedded in the gross contribution paid by the participant, the research identifies two issues that warrant Sharīʿah investigation.
1. Fee on the tabarruʿ fund as practiced in Malaysia The research identifies obscurity in the justification for imposing such a fee on the tabarruʿ fund by the takāful operator since the wakālah fee covers the administrative expenses of the risk fund. The linkage of this fee to the performance of the fund as in the Malaysian context would make it behave like an ‘upfront surplus’. The research recommends the embedment of this fee in the wakālah fee if operationally justified.
2. The cost of qarḍ The authors have conducted a series of interviews with five actuaries and one CEO of a retakāful company in Malaysia. Some secondary data on the issue have also been referred to. Two views were prominent: (i) the first group holds that the cost of qarḍ is not embedded in the price while (ii) the second group maintains the opposite view. The researchers acknowledge the lack of transparency on this issue, and it was too difficult to figure out whether the cost of qarḍ is in fact imbedded in the price. For those who ascertained that the cost of qarḍ is factored into the price, they maintained that qarḍ must be provided for in the capital structure, especially when some regulations would consider the qarḍ irrevocable if not recouped within a stipulated period of time. Based on juristic analysis on qarḍ in the context of takāful, the research concluded that the cost of funds cannot be charged as doing so would be tantamount to ribā.

The research recommends that the regulators place more regulations on certain family takāful products that are prone to either aggressive or conservative modes of pricing. The research also recommends that cost of qarḍ, as indicated by some practitioners, should not be factored into the pricing of takāful products.

Keywords: pricing, underwriting, takāful, assumptions, Sharīʿah

In a continuously changing and growing world of globalization, cultural constructions have provided
insight into influence on consumer behavior and financial decision making. Religion plays a vital role in
influencing individual and social attitudes, values, and behaviors, which in turn define the religiosity of any
individual as a social being. Robust development in the Takaful (Islamic insurance) sector with numerous
potential new market motivates the question regarding the relationship between religiosity and demand for
Takaful. Therefore, this paper explores the importance of religiosity in influencing the demand for this religiously
designed insurance through critical review of past studies to deepen the understanding of Muslims’ need for
Takaful, subsequently contribute to stakeholders’ decision and policy making to promote the development of
the Takaful sector.

В статье рассматривается восприятие института страхования в среде мусульман Волго-Уральского региона в начале XX в. Авторы анализируют аргументацию богословов, считавших страхование дозволенным с точки зрения шариата и опиравшихся на теорию ихтилаф ад-дар, согласно которой Волго-Уральский регион в условиях Российской империи представлял собой дар ал-харб (территорию войны). В статье рассматриваются особенности похода традиционалистов (кадимистов) и модернистов (джадидов) к вопросу о дозволенности страхования с точки зрения шариата. Проводятся параллели с позициями ученых из других регионов мусульманского мира. В конце статьи дается перевод фетвы Зайнуллы Расулева «О дозволенности страхования дома, иного имущества и жизни от различных невзгод».

Insurance has become part and parcel of our contemporary life style. However, given that Islam prohibits the demand for conventional insurance, it is substituted by Takaful. India has the second largest Muslim population in the world underscoring the strong potential growth for Takaful. The primary objective is to explore
the policyholders’ knowledge of insurance and Takaful in India. This paper further investigates whether policyholders’ knowledge on prohibition of insurance can trigger introducing Takaful in India. In analysing the data, descriptive statistics and reliability test are employed. The study finds that the awareness of Takaful is very low compared to insurance. However, the regression analysis and correlation results indicate that knowing that insurance is prohibited significantly affects
conventional insurance. It seems to provide the evidence that there is a positive sign for the future Takaful market in India. It is expected that the findings will be
of interest to investors, insurance operators and regulators in India.

From the viewpoint of Maqasid al-Shariah (Objective of Islamic Law), Islam gives the right to all human to acquire and consume their wealth freely without any violation to others. The violation includes taking the others right, fraud, wastage and also unjust distribution of the wealth. In order to achieve this aim, government, authority party and takaful operator have to ensure the right and entitlement of all parties in the takaful transaction are safeguarded. The objective of this paper is to analyze a potential legal case which suppose involve a legal judgement on takaful model. The methodology of research in this paper is through a qualitative study based on content analysis of particular court case and available takaful models in the market. The general finding of this paper shows that a more innovative model for takaful business is required in order to protect both parties in the transaction namely takaful operator and takaful participant.

Asuransi sebagai aktivitas bisnis diharuskan memenuhi prinsip-prinsip hukum asuransi. Salah satu prinsip yang harus dipegang teguh adalah principle of utmost good faith, di samping prinsip yang lain. Prinsip ini berbunyi bahwa seorang tertanggung wajib memberi informasi secara jujur terhadap apa yang dipertanggungkan kepada penanggung. Dalam bisnis Islam, kejujuran merupakan prinsip yang harus dijunjung tinggi. Secara hukum, prinsip ini diatur dalam KUH Dagang. Persoalannya adalah apakah prinsip ini dianggap cukup dari sudut pandang hukum perjanjian syariah. Secara sekilas bahwa prinsip iktikad baik sempurna ini telah memenuhi asas perjanjian syariah, namun demikian tidak memiliki kriteria maksimal kejujuran. Ketiadaan kejujuran dalam bisnis asuransi akan berdampak pada batalnya perjanjian asuransi karena ada unsur cacat kehendak ('uyub ar-ridla). [Insurance as a business activity must fulfill principles of insurance law. One of the principles that must be hold on is the principle of utmost good faith. The principle says that an endured person must honestly give information of what should be given responsibility to the guarantor. In Islamic business, honesty is a principle that should be respected. From point of view of law, the principle is settled in commerce law. The problem is that whether the principle is represenative enough if it is viewed from law of syariah agreement. At glance, the principle has fulfilled the basic of syariah agreement, however, it

Human beings are naturally inclined towards safeguarding and protecting themselves from future misfortunes. This natural tendency of risk mitigation has given rise to the concept of insurance which existed thousands of years ago and was fervently practiced by many ancient tribes. Over time, the concept of insurance has changed since it is now being commercialized and have been transformed into a profit-oriented business. To revive the legacy of the real concept of insurance, the takāful (Islamic insurance) scheme was introduced in the second half of the 20th century differentiating itself from conventional insurance practices. The takāful scheme is strictly based on Islamic law known as Shari'ah. This paper thus expounds on the concept of takāful assimilating a holistic overview of this emerging industry while sorting the differences between the takāful scheme and the conventional insurance mechanisms. It concludes that the takāful (Islamic insurance) scheme is a robustly viable...

Takaful companies have emerged in the Arab and Islamic countries as the face glittery models Takaful and Islamic alternative to traditional insurance models, which could endanger the jurisprudential academies, because of the legitimacy of irregularities in their fatwas, including scientists and researchers in their study and research.
Insurance Takaful economic and financial as a system, as a result of the emergence of commercial insurance companies in the Arab and Muslim countries based on the principle of ambiguity afternoon, it took scholars, scientists and researchers studying the commercial insurance damage and breach of the provisions of Sharia, where many of the seminars and conferences held and settled it on the prohibition of commercial insurance with a legitimate alternative Takaful, which, in this regard has initiated many Arab and Islamic countries in issuing Takaful in response to the requirements of the insurance markets systems due to the high demand for Islamic insurance products.
In order to address the research and achieve its objectives has been to use both deductive approach and instrumental description and analysis in order to show the theoretical aspects of the subject, and the inductive method in order to extrapolate the contents of Takaful insurance systems in the Arab countries mentioned.
It has been reached to a number of findings, including:
- Takaful emerged as an alternative to commercial insurance after the recommendations of the jurisprudential academies and senior scientists and scholars prohibiting commercial insurance;
- States are under study, a pioneer in the development of legislation to regulate the work of Takaful insurance companies on the Gulf and Arab levels;
- Still Takaful insurance industry faces many challenges, some of which is related to the legal and legislative side, some of which is related to the human element, some of which is related to corporate governance and regulatory compliance.

Purpose

Despite extensive studies on predictors and antecedents of organizational commitment, empirical researches on the impact of workplace spirituality on organizational commitment remain scarce. This study aims to examine the impact of the dimensions of workplace spirituality on agents’ organizational commitment in Islamic insurance (Takaful) industry in Malaysia.

Design/methodology/approach

This study employs a positivist research approach, comprising of a quantitative basis of enquiry, and gathered data via survey questionnaires. A total of 600 questionnaires were distributed and finally 395 usable cases were selected for analysis. Pearson correlation and stepwise multiple regressions analysis methods were used to analyze the data.

Findings

The findings indicated that spirituality in the workplace has a positive and significant effect on organizational commitment. The relationship between each and every component of workplace spirituality and organizational commitment was found to be substantial, positive and significant. The study findings will enable Islamic insurance companies to understand the importance of spirituality in the workplace and will further improve their function and performance by way of enhancing employees’ spirituality in the workplace. This study suggests developing of more spiritual training, workshops, lectures and seminars on spirituality at the workplace which will help employees of takaful operators and agencies to cope effectively with life problems, reduce stress, boost loyalty and enhance organisational commitment.

Originality/value

This study raises awareness on the importance of spirituality in the workplace and investigates the influence of its components to enhance organizational commitment, which will ultimately; contribute to improving and sustaining human well-being and organizational performance.

Keywords: Takaful, Organizational commitment, Well-being, Islamic insurance, Spirituality in the workplace

Tekafül,  konvansiyonel  sigortacılığın;  faiz,  belirsizlik  ve  kumar  gibi  etmenlerden
arındırılmış bir alternatifi olarak karşımıza çıkmaktadır. Bu çalışmayla tekafül ve diğer
sigortacılık  sistemlerinin  kavramsal  çerçeveleri  açıklanmış  ve  devamında  bu
uygulamaların  benzer  ve  farklı  yanları  ortaya  konulmuştur.  Daha  sonra  tekafül
sisteminin  yapısı,  çalışma  ilkeleri  ile  dünyadaki  durumu  ve  gelişmesi  incelenerek,
Türkiye’deki  tekafül  uygulamalarının  da  güncel  veriler  ışındaki  son  durumu  ortaya
konulmuştur.  Elde  edilen  nitel  ve  nicel  verilere  göre  Türkiye’deki  tekafül
uygulamalarının  önünde  çeşitli  problemler  olduğu,  gelişme  potansiyelinin  yüksek
olmasına  rağmen  yeteri  kadar  gelişemediği  ve  bu  nedenle  beklenen  ihtiyacı
karşılamadığı  görülmüştür.  Bu  çalışmayla  tekafül  piyasasının  gelişmesi  ve  sistemin
yaygınlaştırılabilmesi için çeşitli çözüm önerileri getirilmiştir. Bu çalışmada getirilen
önerilerin,  ileride  bu  alanda  yapılacak  olan  çalışmalar  için  temel  bir  yol  haritası
belirlediği düşünülmektedir.

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.

Even though takaful practices have around forty years of history globally, takaful operations are a comparatively new and underdeveloped sector in the Turkish insurance market. Given its dominant Muslim population, well-developed financial system, and the fact that takaful contributions have grown exponentially which is supported by current statistics, Turkey has great potential in prospering its takaful market. Thus, Turkey should develop further policies to develop its own takaful operators. In achieving so, Malaysia, which is considered to be one of the most advanced takaful ecosystems in the world, has been regarded as an example for comparison to probe into its takaful sector and evaluate the opinions of the Malaysian professionals towards the development of the takaful system in Turkey. In this paper, a phenomenological perspective has been used, assuming takaful as the phenomenon. This phenomenon was investigated by examining the experiences of five business professionals and four Shariah scholars through semi-structured interviews. With this technique, it is also aimed to obtain some valuable suggestions for the Turkish takaful industry. It is found that Turkey should firstly develop its regulatory and Shariah governance system and then take gradual steps to regulate to market. In addition, increasing awareness, developing qualified human capital, adapting technology for marketing, and standardising the market practices will help the development of the takaful market in Turkey.

Takaful is an Islamic concept of modern insurance. It is based on
cooperation and mutual understanding. Takaful has a significant position
in the financial market. Conventional insurance has also opened the
window for takaful in the Middle East and African countries. Takaful is
considered one of the lucrative industries in the financial market. Several
aspects of Takaful were explained in various books and monographs.
There are numerous benefits of Takaful studied in various research, but
takaful has some significant aspects in Macroeconomics literature. It
helps to grow the economy by enhancing the productivity and economic
security. The paper aims to analyse theoretically the impact of Islamic
insurance on production, consumption and investment to study the
impact of Takaful on Gross Domestic Product of Economy

Human beings are naturally inclined towards safeguarding and protecting themselves from future misfortunes. This natural tendency of risk mitigation has given rise to the concept of insurance which existed thousands of years ago and was fervently practiced by many ancient tribes. Over time, the concept of insurance has changed since it is now being commercialized and have been transformed into a profit-oriented business. To revive the legacy of the real concept of insurance, the takāful (Islamic insurance) scheme was introduced in the second half of the 20th century differentiating itself from conventional insurance practices. The takāful scheme is strictly based on Islamic law known as Shari'ah. This paper thus expounds on the concept of takāful assimilating a holistic overview of this emerging industry while sorting the differences between the takāful scheme and the conventional insurance mechanisms. It concludes that the takāful (Islamic insurance) scheme is a robustly viable...

Islamically, the significance and the socioeconomic benefits of ensuring social security for the citizens cannot be overemphasized, since Islam has provided a very strong and multi-dimensional social protection system, particularly, for the less-privileged and less-productive members of the society. This paper titled: " Sources of Social Security in Islamic Economics " aims at studying the concept of Social Security from Islamic Perspective and examines the basic components of Islamic Social Protection System. It also highlights the systems of Zakat, Nafaqat, Waqf, Kaffarat and Sadaqat as some Islamic provisions of social protection system, which can contemporarily be considered as Islamic Sources of social security. The researcher has adopted analytical and descriptive approaches in this work. The main findings of this study have shown that Islam as a complete and comprehensive way of life has a very strong social security system, with different sources of finance, to the extent that if these sources are well managed and utilized poverty and other social insecurity related issues will be drastically alleviated, particularly, among the less-privileged and less-productive members of the society.

The present poor state of Nigerian agriculture has to do with the lack of care on the part of the government and stakeholders on one hand as they failed to formulate and implement right and
effective policies that will revive and restructure agricultural sector in the country, on the other hand it has to do with farmers’ attitude towards risk in the adoption of innovations and new
production techniques in the agricultural industry as well as the risk inherent in such development and their socioeconomic environment. Muller, Ramm, & Steinmann (2014) in their
study assert that smallholders operate in a complex environment and face a number of constraints, which hold them back from developing their farm activities and ultimately improve their livelihoods. According to the authors, typical constraints include inadequate access to means of production, limited farming know-how, difficulties in market access, cultural
restrictions, significant production and price uncertainty, and a generally unfavorable investment climate. However, micro insurance is an important means of protecting poor households from  adverse financial consequences of risk, the purpose is to protect people against risks that can be  quantified, through solutions that are responsive to local needs, apply technically-sound operational processes and are structured to promote financial sustainability (MIA, 2012). Micro insurance is an insurance package designed, and often found among the developing countries, where the conventional insurance markets are inefficient or non-existent, in other words not sufficient to extend to their rural areas. Because these people are limited by their financial capacity, and their earning income is lower than a usual insurance plan requirement, therefore, these people can only afford smaller premiums.

This article examines the legal issues associated with the application of the dual contract system, tabarru’ and tijārah, in sharia insurance industries in Indonesia. This qualitative study used secondary data. It is linked up with clauses and conditions of the contract used by Islamic insurance industries in Indonesia. This method is used for the purpose to examine the legal reasoning regarding the application of the contracts of tabarru’ and tijārah in Islamic insurance products. The research approach to the problems is normative-juridical. It is a method employed to figure out the legal problems based on secondary data. This study found that the application of Islamic insurance contracts was not created a separation between the returns obtained from the sectors tabarru’ with tijārah. This shows that the dualism of tabarru’ and tijārah contracts in sharia insurance in Indonesia is not in line with the basic principles of sharia engagement.

Annuities are being treated as a backup financial strategy throughout the age of retirement and a way of reducing the long-term risk of a person's old age. Takaful markets in Malaysia have wanted to advance an annuity plan backed by Islamic Shari'ah and similar to the purpose pursued by an insurance company, but failed to do so after initiation in early 1999. The objective of this study was to investigate the relationship among consumers' decision to take Takaful retirement annuity plan and their perceived value, knowledge mediated by attitude. Quantitative research has been conducted by a structured questionnaire survey on participants' attitude, perceived value and knowledge of Takaful retirement annuity plan. The sample (n=121) for this study consisted of the employees working in different functional units of the International Islamic University Malaysia located in the metropolitan capital (Kuala Lumpur and Selangor) area of Malaysia. The findings from this study unveiled that the attitude and perceived value of the participants had a significant positive relationship with their decisions to take Takaful retirement annuity plan. But no direct connection has been found between knowledge and choices on Takaful retirement annuity plan. The significant practical implication of this study will be the Takaful operators, their customers, and researchers.

Sigorta, bir bireyin ya da kurumun gelecekte karşılaşılması muhtemel zarar ve kayıplarının tazminini sağlamak amacıyla bir sigorta şirketiyle yaptığı sözleşme olarak tanımlanabilir. Sigortacılık sistemi, günümüzde hem reel sektörün hem de finans sektörünün çok önemli bir unsurudur. Karşılaşılması muhtemel risklere karşı bir güven ortamı oluşturan sigortacılık sistemi, girişimcilerin daha rahat ve güvenli bir şekilde yatırım yapmalarını sağlamaktadır. Sigortacılık sisteminin sağladığı faydalar ve yerine getirdiği işlevler her ne kadar Müslüman toplumlar için de aynı derecede geçerli ve önemli olsa da geleneksel sigorta sözleşmelerinin İslam’a aykırı pek çok yönü bulunmaktadır. Çalışmanın amacı, katılım sigortacılığı sistemi ile geleneksel sigortacılık arasındaki farkların ortaya konularak katılım sigortacılığı sisteminin tanıtılmasıdır. Bu bağlamda Türkiye’de katılım sigortacılığını düzenleyen mevzuat ve katılım sigortacılığının Türkiye’deki durumu da çalışmada incelenecek hususlar arasındadır.