Takaful Fund
[pic 1]KULIYYAH OF ECONOMICS AND MANAGEMENT SCIENCEINTERNATIONAL ISLAMIC UNIVERSITY MALAYSIACOURSE:PRINCIPLES & PRACTICES OF TAKAFUL&RE-TAKAFULCOURSE CODE:FIN 4030 SECTION 02TOPIC:NORSHAHIRA NADIA BINTI NAPI 1524944ZHOU QINYU 1438878LECTURER’S NAME:MADAM FADHILAH BINTI ABDULLAH ASUHAIMITABLE OF CONTENTBILTITLEPAGES1Introduction 12Analysis of Issues in TakafulInvestment of the Takaful fundAre the investment are fully Shariah-compliant?Lack of transparencyNo platform has been established yet2.0 Reinsurance by Shariah compliant insurance2.1 Limited amount and capacity 2.2 Competition between conventional and Islamic institutions2CONCLUSIONREFERENCES
INTRODUCTION The article we study is named “Analyzing the shariah compliant issues currently faced by Islamic Insurance” by Asif Ahmed Qureshi. This article attempts to highlight those residuals of conventional insurance that are still present in Shariah compliant insurance either by compulsion or as doctrine of necessity. Firstly, the article claimed that conventional is unacceptable in Shariah. Because the elements in conventional system which are Riba(interest), Maysir(gambling) and Gharar(uncertainty) are prohibited by Shariah law. Secondly, author explained that the concept of Shariah compliant insurance is based on ta’awun(cooperation) and tabarru’(donation), where the risk is shared collectively and voluntarily by the group of participants. And, he mentioned about the development of Shariah compliant insurance in the world. Furthermore, the main operation models respectively are Mudharabah model and Wakalah were pointed in this part. Last but not least, the third part focus on the Takaful and cooperative battling issues. There is doubt about the investment whether insurance companies really invest in shariah compliant insurance or not. The other doubt area is the reinsurance by shariah compliant. Therefore, this paper aims to highlight the current state of these areas.