The Religious Perspective of Takaful as Ethical Insurance

Kasim, Nawal; Htay, Sheila Nu Nu; Salman, Syed Ahmed

doi:10.5901/mjss.2016.v7n4p96

Cited by 13 publications

(21 citation statements)

References 9 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Therefore, their losses and needs will be protected. This shows that, among participant are sharing both the good and bad moments together and build a strong spirit of brotherhood (Kasim et. al, 2016;Venkatraja, 2018).…”

Section: The Concept Of Spiritual and Religious Attainmentmentioning

confidence: 93%

Religious and Socioeconomic Implications of Islamic Insurance: A Review

Rahman¹,

Osman²,

Ani³

et al. 2019

IJFR

View full text Add to dashboard Cite

In this paper, our purpose is to evaluate religious and socioeconomic implication of Islamic insurance to the society. Islamic insurance i.e. takaful is a form of protection and wealth preservation method based on the principles of mutual cooperation, encompassing the elements of Shari’ah compliancy such as prohibitions of riba (interest/usury), gharar (uncertainty) and maysir (gambling), while upholding the virtue of mudharabah (profit sharing), wakalah (trusted agency), tabarru’ (donation/charity) and ta’awun (cooperation). Recently, there are numerous literatures on religious and socioeconomic realms with regards to takaful industry due to the financial product being widely accepted in the modern day. In addition, contemporary scholars made various efforts to study the legality and feasibility of takaful as an alternative to the conventional insurance. Within the legality and feasibility of takaful, it is essential to recognize its implications to the society. As such, this paper reviews the implications of takaful products within the context of religious duty and spiritual fulfilment, at the same time towards the socioeconomic attainment. The finding of this paper embodies that takaful industry indeed substantially influence the religious and socioeconomic behavior, hence influence the society in making decision with regards to protection of their life, family as well as preservation of their wealth. Besides, this paper outlines the benefits and pitfalls of takaful which open the door for improvement. Nonetheless, this paper limits itself to the implications in general context, hence it provides space for a more focused setting in the near future. On the other hand, as this paper is evaluative in nature, review process is done via analysis of the current literature from academic papers, journals and books obtained via library and online research databases.

show abstract

Section: The Concept Of Spiritual and Religious Attainmentmentioning

confidence: 93%

Religious and Socioeconomic Implications of Islamic Insurance: A Review

Rahman¹,

Osman²,

Ani³

et al. 2019

IJFR

View full text Add to dashboard Cite

show abstract

“…Later on, for a Takaful exchange to get legal and enforceable, it ought to be liberated from unlawful components, for instance, usury, extortion, and ahead. Takaful practices the idea of risk sharing, while the general insurance practice depends on risk transfer (Kasim, Htay, & Salman, 2016). In Takaful, risk sharing among members is decided by taking at the danger support.…”

Section: Literature Review and Prepositioningmentioning

confidence: 99%

Determinants of Customer Perception about adoption of Islamic Insurance (Takaful) in Pakistan

Khan

Rashid

Yaqub

et al. 2020

JBSEE

View full text Add to dashboard Cite

The purpose of this study is to assess the response level of individuals concerning Islamic Insurance in Pakistan and to measure its outreach and most pertinent factors affecting customer selection of Islamic Insurance. It also seeks to make informed recommendations on empowering frameworks for the establishment of Takaful insurance through relevant marketing campaigns in Pakistan. The impact of factors like Customer Awareness, Consumer Satisfaction, Risk Perception, Compatibility and Religiosity was checked on Adoption of Islamic Insurance in Pakistan, with the presence of Social Influence as a mediating variable. Data were collected through questionnaire administered to 300 respondents, representing the Muslim community from urban as well as rural areas, of Pakistan. Partial least square-structural equation modeling (PLS-SEM) through Smart PLS3 was used to examine the relationships among pertinent factors in this study. The findings suggest that most respondents are either not aware of Takaful as an insurance and investment option, or do not understand the concept altogether. This study suggests that Islamic insurance organizations should focus on awareness campaigns as an essential marketing strategy and dedicated resources to reach prime customer segments in general and fulfil the need to inform people about their products and services through clear understanding of principles of Shariah compliance. The findings of this research have important implications for Takaful companies as well as regulators and general insurance customers.

show abstract

“…Takaful is based on the origin of Ta'āwun (cooperation) and Tabarru' where the hazard is bestowed collectively by members of a policy (Alhabshi, Sharif, Shaikh Abdul Razak, & Ismail, 2012;Annuar, 2004;Annuar & Bakar, 2010;Arifin, Yazid, & Sulong, 2013;Billah, 2001;Yusof, Ismail, & Naaim, 2011;Faruk, Rahaman, et al, 2015;Kasim, Htay, & Salman, 2016Kassar, 2008;Maysami & Williams, 2006;Muliadi & Feriyanto, 2018;Noor, 2009;Noordin, 2013;Salman, Rashid, et al, 2015;Usmani, 2007;Yazid, Arifin, Hussin, & Daud, 2012;Rahman & Redzuan, 2009). According to Hassan, Kassim, Majdi, and Salman (2018), "Takaful is social and ethical insurance based on the principle of Ta'āwun (cooperation) and Tabarru where the risk is shared collectively by members of a policy.…”

Section: Introductionmentioning

confidence: 99%

“…Alike to insurance, Takaful can afford monetary support while remaining free from the forbidden factors incorporated with traditional insurance systems. For this purpose, among others, Takaful is acknowledged as noble insurance (Kasim et al, 2016). It is based on the idea of joint help and assistance, and it encourages solidarity and friendship between the members.…”

Section: Introductionmentioning

confidence: 99%

Innovative Nature of the Takaful Industry in Malaysia: Are We with The Conventional Insurance Industry?

Hassan¹,

Salman²

2021

Int. j. bus. adm. stud

Self Cite

View full text Add to dashboard Cite

Takaful has originated as an idea for preserving the care of people from financial damage. It can be employed as a risk management device to alleviate the hazards of regular life and trade activities. Furthermore, it gives significance to society's worldwide economic growth as a tool of assembling funds in the economy. Takaful supports organizations to decrease their monetary burden. Businesses can buy Takaful to claim casualties acquired due to the misfortunes of workers in the workplace. Takaful takes responsibility for the protection and welfare of workers. Takaful has numerous products such as Motor Takaful, Family Takaful, and so on. However, Takaful products' innovation is prolonged, causing the Takaful industry to lag behind the insurance industry, especially in marketing and pricing. Thus, this research aims to explore Shari'ah advisers' views towards the innovation of Takaful products in Malaysia. A mixture of convenient sampling and purposive sampling methods are employed for choosing the Shariah advisers as the interviewees. The data for the research is collected via interviews with 11 Shariah advisers. The findings of this research show that Shariah advisers believed that many potentials need to be explored. One way to discover the potential is through innovation. Among the Takaful industry segments that need to be improved are products, marketing, pricing, customer services, and distribution channels. Moreover, the lack of awareness among customers on Takaful gives rise to many problems. Nevertheless, Shariah advisers contributed many reasonable clarifications to the current condition, suggesting that several Takaful industry areas could be improved to become an innovative industry.

show abstract

The Religious Perspective of Takaful as Ethical Insurance

Cited by 13 publications

References 9 publications

Religious and Socioeconomic Implications of Islamic Insurance: A Review

Religious and Socioeconomic Implications of Islamic Insurance: A Review

Determinants of Customer Perception about adoption of Islamic Insurance (Takaful) in Pakistan

Innovative Nature of the Takaful Industry in Malaysia: Are We with The Conventional Insurance Industry?

Contact Info

Product

Resources

About