Takaful (Islamic Insurance):
Its Concept, Development & Operational Mechanisms*

�� Mohd. Ma'sum Billah (Ph.D.)**

E-mail: [email protected]

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Introduction

Development Scenario

Nature of Insurance Practices in the Islamic Economy

Scope of islamic insurance contract

foundation of insurance in the islamic economy

rational outlook

sources of takaful law in the islamic economy

Sources in General
Practices of the Companions
Ijtihad and Consensus of Opinions Among the Islamic Scholars

Analogical Sources
Masaleh Al-Mursalah
Urf, Fiqh
Relevant Literatures of the Islamic Scholars�
Act of Parliament
Rules of the Shariah Supervisory Board
Precedents
Unanimous Decision of the Islamic Scholars

Specific Sources
Principles of Contract
A Person Under the Age of Eighteen Years Shall Not
Have the Capacity to Enter Into Contract of Takaful
Principles of Liability
Principles of Uberrimae Fidei
Principles of "Mirath" and "Wasiyah"
Principles of Al-Wakala
Principle of Daman
Principle of Al-Mudharabah and Al-Musharakah
Principles of Rights and Obligations
Principles of Humanitarian Law
Principles of Mutual Co-operation

dispute among muslim scholars on insurance (takaful) issue

Misconceptions
Response to the Misconception
Further Justifications for the Validity of Insurance in the Islamic Economy

final remarks