Accident Takaful

  • Mohd Ma’Sum Billah


This chapter considers accident policy under Takaful, Shari’ah rulings regarding this topic and further recommendations. In Takaful, basically there are two main types of insurance. The first is life insurance, also known as Family Takaful. The other one is General Insurance. An Islamic Takaful transaction is a policy of mutual co-operation, solidarity and brotherhood against unpredicted risk or catastrophe, in which the parties are expected to contribute genuinely. In life insurance there is a Participant Account and Participant Special Account, while in general insurance there is no PA only PSA. Compared to conventional insurance, Takaful policies have a right to use their own rates. Basically, other conventional insurance agencies follow the Persatuan Insurans Am Malaysia (PIAM) standard. For example, air conditioning, radio, glass and spot rim are not covered by PIAM but under Takaful it will be covered. This chapter will discuss these issues further to deepen the understanding of the reader.

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© The Author(s) 2019

Authors and Affiliations

  • Mohd Ma’Sum Billah
    • 1
  1. 1.Professor of Finance, Insurance, Fintech and Investment Islamic Economics InstituteKing Abdulaziz UniversityJaddahKingdom of Saudi Arabia

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