Takaful insurance in theory and practice
Islam attaches great importance to insurance, as an instrument of protection of the individual and the community, and considers it an indispensable element of the process of achieving socio-economic justice in society. Consequently, in the Islamic concept of insurance, the social component dominates...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Association of Serbian Banks
2021-01-01
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| Series: | Bankarstvo |
| Subjects: | |
| Online Access: | https://scindeks-clanci.ceon.rs/data/pdf/1451-4354/2021/1451-43542101108L.pdf |
| _version_ | 1819105299478347776 |
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| author | Lekpek Ahmedin Ibrović Semir |
| author_facet | Lekpek Ahmedin Ibrović Semir |
| author_sort | Lekpek Ahmedin |
| collection | DOAJ |
| description | Islam attaches great importance to insurance, as an instrument of protection of the individual and the community, and considers it an indispensable element of the process of achieving socio-economic justice in society. Consequently, in the Islamic concept of insurance, the social component dominates over the commercial component. However, requirements of the modern environment have made it necessary to have Shariah-acceptable commercial insurance. Given that conventional insurance models are largely Shariah non-compliant, Takaful insurance has been developed to meet the needs of individuals and institutions that want to be insured in accordance with Shariah principles. In this paper, we will analyze the process of evolution of Takaful insurance, its types and models, perform a comparative analysis of Takaful and conventional insurance, reviewing arguments in favor of Shariah specific nature of conventional insurance, and finally, list the challenges of implementing Takaful insurance in practice. |
| first_indexed | 2024-12-22T02:20:02Z |
| format | Article |
| id | doaj.art-b317dffe61e144c6bc5a6e07dbb0f5a6 |
| institution | Directory Open Access Journal |
| issn | 1451-4354 2466-5495 |
| language | English |
| last_indexed | 2024-12-22T02:20:02Z |
| publishDate | 2021-01-01 |
| publisher | Association of Serbian Banks |
| record_format | Article |
| series | Bankarstvo |
| spelling | doaj.art-b317dffe61e144c6bc5a6e07dbb0f5a62022-12-21T18:42:10ZengAssociation of Serbian BanksBankarstvo1451-43542466-54952021-01-0150110813310.5937/bankarstvo2101108L1451-43542101108LTakaful insurance in theory and practiceLekpek Ahmedin0Ibrović Semir1Državni univerzitet, Novi Pazar, SerbiaKnjigovodstveni biro Pro Union 2020, Novi Pazar, SerbiaIslam attaches great importance to insurance, as an instrument of protection of the individual and the community, and considers it an indispensable element of the process of achieving socio-economic justice in society. Consequently, in the Islamic concept of insurance, the social component dominates over the commercial component. However, requirements of the modern environment have made it necessary to have Shariah-acceptable commercial insurance. Given that conventional insurance models are largely Shariah non-compliant, Takaful insurance has been developed to meet the needs of individuals and institutions that want to be insured in accordance with Shariah principles. In this paper, we will analyze the process of evolution of Takaful insurance, its types and models, perform a comparative analysis of Takaful and conventional insurance, reviewing arguments in favor of Shariah specific nature of conventional insurance, and finally, list the challenges of implementing Takaful insurance in practice.https://scindeks-clanci.ceon.rs/data/pdf/1451-4354/2021/1451-43542101108L.pdfislamic financeinsurancetakafulrisk managementmutual insurancemudarabahwakalah jel classification: g22d47 |
| spellingShingle | Lekpek Ahmedin Ibrović Semir Takaful insurance in theory and practice Bankarstvo islamic finance insurance takaful risk management mutual insurance mudarabah wakalah jel classification: g22 d47 |
| title | Takaful insurance in theory and practice |
| title_full | Takaful insurance in theory and practice |
| title_fullStr | Takaful insurance in theory and practice |
| title_full_unstemmed | Takaful insurance in theory and practice |
| title_short | Takaful insurance in theory and practice |
| title_sort | takaful insurance in theory and practice |
| topic | islamic finance insurance takaful risk management mutual insurance mudarabah wakalah jel classification: g22 d47 |
| url | https://scindeks-clanci.ceon.rs/data/pdf/1451-4354/2021/1451-43542101108L.pdf |
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