التكافل اإلسالمىIslamic Insurance
(Takaful)
Dr. Kamaru Salam YusofLecturer, FBMS, Unissa
Negara Brunei Darussalam
TOPIC 3:TAKAFUL; CONCEPT & HISTORY
Faculty of Business & Management Sciences, UNISSA, Brunei Darussalam
word• The term تكافل is a (infinitive noun), which is
derived from the root word . ل. ف . ك• . ل. ف .’means ‘guarantee ك• The word تكافل whose chief characteristic is
.’means ‘sharing ,المشاركة• Thus, the word تكافل (Takaful) means ‘shared
responsibility or shared guarantee, responsibility, assurance or surety’.
Faculty of Business & Management Sciences, UNISSA, Brunei Darussalam
word• Technically, تكافل (Takaful) from the economic
point of view means mutual guarantee provided by a group of people living in the same society against a defined risk or catastrophe befalling one’s life, property or any form of valuable things
Faculty of Business & Management Sciences, UNISSA, Brunei Darussalam
Meaning of takaful1. Responsible2. Guarantee3. takaful - joint guarantee, share responsiblity
3 aspects mutuality happen• Help
• Responsibility• protection
Faculty of Business & Management Sciences, UNISSA, Brunei Darussalam
concept• system where participant contribute to
common fund and intend to jointly guarantee each other.
• when participate– seek protection– jointly co-operate
Faculty of Business & Management Sciences, UNISSA, Brunei Darussalam
Dalil of Takafulَوالتَّْقَوى }5:2 البِر(ِّ َعلَى { َوتََعاَونُواْ
“…and help you one another in righteousness and piety” As-Sunnah
: فرمت هزيل من امرأتان اقتتلت قال عنه الله رضي هريرة أبي عن . النبي إلى فاختصموا بطنها في وما فقتلهما بحجر األخرى إحداهما
وليدة أو عبد غرة جنينها دية أن فقضى وسلم عليه الله صلى) ( . البخاري رواه عاقلتها على المرأة دية وقضى
“Narrated by Abu Hurairah (r), who said that: once two women from the tribe of Huzail clashed when one of them hit the other with a stone, which killed her and also the foetus in the victim’s womb. The heirs of the victim brought an action to the court of the Holy Prophet (s.a.w), who gave a verdict that the compensation for the infanticide is freeing of a male or female slave while
the compensation for killing the woman is the blood money (diyat), which to be paid by the ‘Aqilah’ (the paternal relatives) of the accused”.
History of takaful
Faculty of Business & Management Sciences, UNISSA, Brunei Darussalam
History of takaful• Ancient Arab tribal custom and the companions of the
Prophet. • The custom of “al-aqilah”, it is mutually agreed among the
tribes that if a person is killed unintentionally by a person of a different tribe, the accuser’s paternal relatives will take the responsibility to make a mutual contribution for the purpose of paying the blood money to the victim’s relatives.
• This practice of having a fund that pools contributions from a group of people to assist others in need was further encouraged in the early Islamic period.
Faculty of Business & Management Sciences, UNISSA, Brunei Darussalam
arab tribe - relation blood• Prophet approve• aqila• sence of brotherhood• case– unintentional murder
Faculty of Business & Management Sciences, UNISSA, Brunei Darussalam
Takaful in modern world• The first modern Islamic insurance was introduced in Sudan
- based on a cooperative model not dissimilar from a conventional mutual insurer.
• More commercial models of Takaful were later implemented in countries such as Malaysia and Saudi Arabia.
• Takaful has evolved into a viable alternative to conventional insurance and is able to attract a wide range of customers, Muslim and non-Muslim alike.
• Eg: Sri Lanka, where less than 10 percent of the population is Muslim, some 15% of the policyholders of the sole Takaful undertaking there are non-Muslims.
Faculty of Business & Management Sciences, UNISSA, Brunei Darussalam
Evolution in takaful• 1979 -- ta'awuni – Sudan• 1984 -- mudarabah – malaysia• 1984 -- wakalah – gulf• 1996 -- waqf - south africa
Faculty of Business & Management Sciences, UNISSA, Brunei Darussalam
Takaful as industry today• Now practiced by over 60 companies in 23
countries. • More recently, retakaful, the equivalent of
conventional reinsurance, has been developed, initially in Malaysia.
• At present, most Takaful operators reinsure to conventional reinsurers, and this is considered acceptable so long as there is no practicable Shari’ah compliant alternative
Faculty of Business & Management Sciences, UNISSA, Brunei Darussalam
Takaful in present day
spirit1. helping friend – feast2. repair house3. Moving4. khayrat fund
• All are not contradict• but not commercial
Faculty of Business & Management Sciences, UNISSA, Brunei Darussalam
Faculty of Business & Management Sciences, UNISSA, Brunei Darussalam
Takaful’s growing share of the GCC insurance industry
• With a focus on Takaful, Saudi Arabia tops the world rankings, holding 75% of total global contributions, according to the latest released figures for 2009: followed by Malaysia and the UAE, which is emerging as one of the most developed Takaful markets in the region.
Faculty of Business & Management Sciences, UNISSA, Brunei Darussalam
Ruling of takaful• 1965 – cairo• 1976 - mecca - insurance for profit is contrary• 1985 - Jeddah - Islamic Fiqh Academy -
approved takaful as alternative• 1984 - Malaysia takaful act - 1st in world– Shariah Advisory Council
Faculty of Business & Management Sciences, UNISSA, Brunei Darussalam
Ruling of takaful (2)takaful must base on1. Mutuality2. co-operationPrinciples3. shared responsibility4. joint indemnity5. common interest6. solidarity
Faculty of Business & Management Sciences, UNISSA, Brunei Darussalam
Sources of Law Affecting Takaful1. Al-Quran-elements of mutual cooperation= Almaidah: 5:2. Alleviation of
hardship= 2:1852. Sunnah= Prophet said: Tie the camel first and then leave it to Allah3. Practices of the companion-Al-Dawawin System by S. Umar.4. Fatwa or Ijtihad: Ibnu Abidin=Permissible insurance in trade for merchant known
as Sukra. Muhammad Abduh, Zarqa-agreed to the validity of Islamic insurance 5. Masalih Mursalah= Life, necessity. A way of providing material security.6. Urf-Tribal Custom practice known as Aqilah.7. Unanimous Decision of Muslim Scholars
– Islamic FiqhWeek Syria 1961, – Muslim Scholars Conference 1965 Egypt and Islamic Economic – Conference Mecca 1976 - Validity of insurance business except life insurance. – International Islamic Insurance Dubai 1996 – Labuan1997 -Validity of Takaful.
Faculty of Business & Management Sciences, UNISSA, Brunei Darussalam
Takaful and Maqasid al Shariah. • Protection of property and Protection of life: • Hajiyat and daruriyat • Legal maxim: darar must be removed.• To spread the risks of losses around the large
number of participants• Dr mohd daud bakar: making takaful mandatory to
muslims.• Compulsary to protect the essential needs of the
society.
Case study
Faculty of Business & Management Sciences, UNISSA, Brunei Darussalam
Insurance in Brunei• American International Assurance (AIA)• Asia Life Assurance Society Limited• Great Eastern Life Assurance Co Ltd• AXA Insurance (B) Sdn Bhd• Borneo Insurance Sdn Bhd• Aiva Insurance Sdn Bhd
Faculty of Business & Management Sciences, UNISSA, Brunei Darussalam
Takaful in Brunei
• TAIB• Takaful Islam
Faculty of Business & Management Sciences, UNISSA, Brunei Darussalam
Q?How it difference from insurance