Shari’ah & Financial Issues of Takaful

7150 Words29 Pages
ISLAMIC ECONOMICS & FINANCIAL ISSUES FROM ISLAMIC PERSPECTIVES ECON 6864 GROUP PAPER: SHARI’AH & FINANCIAL ISSUES OF TAKAFUL SEMESTER: SEM 1 2013/2014 STUDENT: ISHAM SHAFARIN BIN ISHAK (G1128403) MOHAMAD HAIDIR HASHIM (G1116671) MOHD ASHRAF BAHARIN (G1212709) ROBIATUL ADAWIYAH SAFRUDDIN (G1312514) EXAMINER: DR. MUSTAFA OMAR MOHAMMED TABLE OF CONTENTS chapter one: INTRODUCTION / BACKGROUND 3 chapter TWO: Literature review 5 chapter THREE: TYPE and STRUCTURE OF TAKAFUL 8 chapter FOUR: SHARI’AH & FINANCIAL ISSUES OF TAKAFUL 12 chapter FIVE: CONCLUSIONS / RECOMMENDATIONS 20 Bibliography 22 chapter one: INTRODUCTION / BACKGROUND Contemporary takaful is a combination of a social security system and a risk management. It draws inspirations from two concepts from Islamic heritage; the Islamic brotherhood and the risk management in Islam. In the time of the Prophet and His Companions, due to the strength of the Islamic brotherhood, the social security was very strong in the community. Back then, should one fall sick or face hardship, his neighbours and other Muslim brothers would surely offer their assistance; be it in monetary, food, physical effort or others. Muslims do this out of their piety and love to each other. This is due to the teaching of Islam that enjoins Muslims to help each other in times of difficulty. This spirit is gloriously enshrined in both Quran and the Prophetic traditions. As narrated in one hadith: “He who relieves the hardship of a believer in this world, Allah will relieve his hardship on the Day of Judgment. He who makes easy what is difficult, Allah will make it easy for him in the world and the Hereafter. He who conceals the faults of a Muslim, Allah will conceal his faults in the world and the Hereafter, for Allah helps the servant so long as he helps his brother. He who travels a path in

More about Shari’ah & Financial Issues of Takaful

Open Document