Takaful in Malaysia: Emergence, Growth, and Prospects

Posted: 29 Apr 2020

See all articles by Monther Eldaia

Monther Eldaia

Al-Aqsa University; Universiti Sains Islam Malaysia (USIM) - Faculty of Economics and Muamalat

Mustafa Hanefah

Universiti Sains Islam Malaysia (USIM) - Faculty of Economics and Muamalat

Ainulashikin Binti Marzuki

Universiti Sains Islam Malaysia (USIM)

Saddam Shatnawi

Universiti Sains Islam Malaysia (USIM) - Faculty of Economics and Muamalat

Date Written: April 4, 2020

Abstract

Takaful is an Islamic insurance contract introduced to substitute the conventional insurance which has been precluded by nearly all Muslim scholars as it encompasses the components of gharar (uncertainty), maysir (gambling), and riba (usury). Its feasibility is evidenced after numerous Fatwas were issued by Fiqh academies and Ulama in its support. Takaful is founded on the basis of cooperation and mutual aid as it is broadly used in the commercial sector. The Takaful business operation is regulated by the codes of Shari’ah and by other laws. Many models such as the Wakalah model, Mudharabah model, and the amalgamation of Mudharabah and Wakalah models have been applied in the Takaful corporate operation. This chapter explicates the existing implications and future prospects of the Takaful industry in Malaysia. It offers a review on Takaful industry in Malaysia and emphasizes issues and challenges, opportunities, and recommendations.

Keywords: Takaful, Malaysia, gharar, maysir, riba

Suggested Citation

Eldaia, Monther and Hanefah, Mustafa and Binti Marzuki, Ainulashikin and Shatnawi, Saddam, Takaful in Malaysia: Emergence, Growth, and Prospects (April 4, 2020). Available at SSRN: https://ssrn.com/abstract=3568293

Monther Eldaia (Contact Author)

Al-Aqsa University ( email )

Gaza Strip
gaza
Gaza, GA h 0599
Palestine
+970594709595 (Phone)

Universiti Sains Islam Malaysia (USIM) - Faculty of Economics and Muamalat ( email )

N.Sembilan
Malaysia

Mustafa Hanefah

Universiti Sains Islam Malaysia (USIM) - Faculty of Economics and Muamalat

N.Sembilan
Malaysia

Ainulashikin Binti Marzuki

Universiti Sains Islam Malaysia (USIM)

Bandar Baru Nilai
Nilai, Negeri Sembilan 71800
Malaysia

Saddam Shatnawi

Universiti Sains Islam Malaysia (USIM) - Faculty of Economics and Muamalat

N.Sembilan
Malaysia

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