Chapter 5 Family Takaful (Islamic life insurance)
Restricted access

The central idea of life insurance contravenes the Shari’ah spirit. Thus, an attempt is made here to come up with an insurance paradigm justified by the Shari’ah principles that may suit the contemporary global Islamic economy. A life insurance policy is a financial transaction undertaking a responsibility towards protecting people against possible future unexpected financial risk. The conventional system of life insurance policies is not recognized by Islamic teaching, which is why many Muslims and even Muslim Scholars oppose the idea of life insurance practiced in the conventional economy. Hence, the central idea of the model of Islamic life insurance is that it is not a policy to insure one’s life, but is a financial transaction relying on the principle of mutual cooperation to undertake the responsibility of safeguarding the dependents of a deceased from financial risks. Such a model of Islamic life policy may not involve unlawful elements like Riba but it may operate on the basis of al-Mudharabah financing technique.

You are not authenticated to view the full text of this chapter or article.

Access options

Get access to the full article by using one of the access options below.

Other access options

Redeem Token

Institutional Login

Log in with Open Athens, Shibboleth, or your institutional credentials

Login via Institutional Access

Personal login

Log in with your Elgar Online account

Login with you Elgar account