Motor Takaful

Abstract

Insurance practice is the most popular method to ensure one’s material security or that property is insured against risk. However, some Muslims are disinclined to accept insurance because they believe that it involves Riba. In response to this, the Islamic scholars have analysed the operation of insurance and eliminated the illegal elements in conventional insurance; they have then suggested the Takaful is the best insurance to substitute for the conventional approach. Takaful or Islamic insurance is policy of mutual co-operation, solidarity and brotherhood in which the participants share responsibility with the insurer against losses. They are expected to contribute to the fund (Tabarru’) with good intentions to help each other.

It is acknowledged that, the idea of this chapter/product is significantly contributed by the practices/experiences/thoughts of Bank Negara, Takaful Malaysia, Takaful Ikhlas, Takaful Nasional, Etiqa Takaful, IBFIM, IIUM, MII and others (Malaysia).