An Overview of Takaful Products
A Takaful business will not be valid in the eyes of Islamic discipline should any aspect of it contravene Shari’ah principles. The Takaful Act (Malaysia) 1984 rules that Shari’ah-based insurance is enforceable if a business’s “aims and operations do not involve any element which is not approved by the Shari’ah.” Therefore, it is a prerequisite for the validity of an insurance contract that no aspect should be in contravention of Shari’ah sanctions. It should also be clarified here that Islam is the only system of life recommended by Allah (swt) and, therefore, it is of course logical for any transaction (including that of insurance) to conform with the Divine rules and regulations. Any transaction that fails to be in line with such Divine will is therefore invalid.