Growth of Islamic Insurance (Takaful) in Malaysia: A Model for the Region?
affiliation not provided to SSRN
July 31, 2008
Singapore Journal of Legal Studies, pp. 143-164, July 2008
Islamic Law and Law of the Muslim World Paper No. 08-47
Takaful, like conventional insurance, involves the allocation and spreading of risk, and is becoming an increasingly important part of our professional and personal lives. This article seeks to set the stage by clarifying the position of takaful within the Malaysian secular common law system with respect to the applicability of Syariah law. In doing so, a comparative analysis will be made of the situation in other Islamic jurisdictions like the Middle East, Pakistan and Indonesia. The latter part of the article will then examine the legal framework regulating takaful in Malaysia, with the aim of suggesting much needed reform, especially with respect to the Takaful Act 1984, so as to support and further boost the growth of takaful in Malaysia, in line with the Malaysian government's aspirations of establishing Malaysia as an international Islamic financial centre.
Number of Pages in PDF File: 23
Date posted: September 16, 2008 ; Last revised: April 14, 2009