Advertisement

Takaful and Its Shariah Compliance

  • Adnan MalikEmail author
  • Karim Ullah
Chapter

Abstract

This chapter has focused on the concept of takaful. Takaful practices existed in the Arab world before the era of Islam, and they were not objected in Islam. The recent practice of takaful emerged in 1979, and there are now more than 300 takaful operators across the globe. Takaful is a contract of tabarru, while conventional insurance is a sale and purchase transaction. The objections to riba al Hadith, maysir and gharar are valid when a contract is commutative, as it is in conventional insurance. However, they are invalid when a contract is non-commutative and is based on tabarru. Therefore, the objections of riba al Hadith, gharar and maysir do not exist in relation to takaful.

Keywords

Gharar Maysir Riba Takaful Tabarru 

Copyright information

© The Author(s) 2019

Authors and Affiliations

  1. 1.Centre for Excellence in Islamic FinanceInstitute of Management SciencesPeshawarPakistan

Personalised recommendations