SEMESTER 2 (2018/2019)
COURSE TITLE:
PRINCIPLES AND PRACTICES OF TAKAFUL AND RE-TAKAFUL
Mind-mapping Notes:
Introduction to Takaful
SECTION : 1
Takaful
During the 19th Century, a Hanafi lawyer Ibn Abidin (1784 –1836)
became the primeval Islamic philosopher to develop the importance,
general notation or idea and legal basis of an insurance agreementa and
starting from that time, insurance practices were based on legal
institutions, not based on customary practice.
Islamic jurists started issuing fatāwas on the illegitimate nature of
conventional insurance and introduced Takaful as an alternative to
insurance in the 20th century. According to these scholars, Takaful
should be based on the contract of donation instead of the
conventional commercial contract of exchange.
The Development of Takaful in Malaysia
IFSA 2013
An arrangement based on mutual assistance under which takaful
participants agree to contribute to a common fund providing for mutual
financial benefits payable to the takaful participants or their beneficiaries
on the occurence of pre-agreed events.
An Islamic insurance company operating a takaful fund must operate under the
following principles:
3.
1.
•..and help one another in goodness and piety, and do not help one another in sin
and aggression; and be careful of (your duty to) Allah; surely Allah is severe in
requiting (evil). ( Surah Al-Maidah verse 2)
•Takaful is a form of mutual help (ta'awun) in futhering good/virtue by helping others
Al-Quran who are in need.
•One day our Prophet Muhammad S.A.W noticed a bedouin left his camel without
tying it. Prophet Muhammad asked the bedouin, "Why don't you tie your camel?“
The bedouin answered, "I put my trust in Allah“ Then Prophet Muhammad said, "Tie
your camel first and then put your trust in Allah“ (Riwayat At-Tirmizi)
Hadith • This Hadith impilied a strategy to reduce risk.
BENEFITS OF TAKAFUL