takaful vs insurance

Takaful Vs InsuranceTakaful Vs Insurance

Course Facilitator: Zeeshan AliProgram: MBA (E)Class: Sunday (03:30 to 06:30)

Group Members:• Muhammad Hashim Abbasi :

2259• Hafiz Tariq Abbas : 2472• Syed Waqar Ali : 1627• Muhammad Manzar Abbas :

1626

Insurance

Risk Aversion Risk sharing Assuring others or protect others

Transfer the burden of financial loss or uncertainty

Does Islam against all these points??

Takaful Vs Insurance

Prophet Yussof a.s. filled the grain silos from the surplus of seven years of good harvest as a protection to ensure the availability of continuous food during the upcoming seven years.

In Quran


Importance of Insurance

Basis of Co-operation Help one another in al-Birr and in al-Taqwa (virtue, righteousness and piety): but do not help one another in sin and transgression.

Surah Al-Maidah, Verse 2

And those of you who die and leave behind wives should bequeath for their wives a year's maintenance and residence.

Chapter Al-Baqra (2), Verse No. (240)

In Quran


https://www.comp.leeds.ac.uk/nora/html/2-240.html



By Anas-bin-Malik, One day Prophet Muhammad (PBUH) noticed a Bedouin leaving his Camel without tying it. He asked the Bedouin, “Why don’t you tie down your camel”? The Bedouin answered, “I put my trust in Allah (SWT)”. The Prophet (PBUH) then said,” Tie your camel first, then put your trust in Allah (SWT)”

Tirmidhi

Importance of Insurance

In Hadees:


Declaration by Shariah scholars

Makkah Mukarrmah on Shaban 10, 1398 A.H. in the office of the Majlis -I-Fiqhi Islamia.

Verdict of Supreme Court of Egypt on Dec. 27, 1926.

Unanimous resolutions and fatwa by Ulama in the Muslim League Conference in Cairo in 1965.

Unanimous decision by Muslim Scholars in seminar held in Morocco on May 6, 1972. Introduction to Takaful 28

The Council of Islamic Ideology of Pakistan gave a decision in December, 1983 that the well-known and current forms of insurance are in conflict with the Islamic practices and they quote that

“The contract of insurance, in all its forms, is unlawful, corrupt, false, prohibited and not promulgatable.”


Gharar (uncertainty) Maisir (gambling) Riba (usury)

Weakness in the Insurance


Takaful

Arabic verb ‘Kafala’ which is also referred to as ‘Kafalat’ . means to guarantee, to help, to take care of one another’s needs.

Based on the principle of TA’AWUN (mutual assistance) and TABARRU’ (Gift, Give away, donation) where the risk is shared collectively by the group VOLUNTARILY.

A group of members or participants who agree to jointly guarantee among themselves against loss or damage


History of Takaful Takaful originated within the ancient Arab tribes as a pooled liability

Modern Takaful

Sudan: 1970s Emergence of Takaful as Waqala Model

Malaysia: 1980s Emergence of Takaful as Mudarabah Model.

Pak Kuwait Takaful was the first Takaful Company in Pakistan to be introduced.


Models of Takaful

Mudarabah Model

Wakalah Model (hybrid of Wakalah & Mudarabah)

Wakalah based on Waqf Model.


Takaful & Insurance Model


ConclusionWhich One is Halal or Haram ?

or


Conclusion

Slaughtering Process

As per Islamic Law

Haram

Halal

Other


takaful vs insurance

Education