Browse by title

You are looking at 1 - 10 of 24 items :

  • Law - Academic x
  • Economics and Finance x
  • Islam and the Law x
Clear All Modify Search
This content is available to you

Mohd M. Billah, Ezzedine GhlamAllah and Christos Alexakis

You do not have access to this content

Mohd M. Billah, Ezzedine GhlamAllah and Christos Alexakis

You do not have access to this content

Mohd M. Billah, Ezzedine GhlamAllah and Christos Alexakis

The model of Islamic insurance policy is based on the principles of mutual cooperation, brotherhood and solidarity. This timely volume contradicts the widely-held belief that insurance policies oppose the teachings of Islam, exploring ways in which it coheres with Shari’ah law. The book explores Takaful, an insurance paradigm that is in accordance with Islamic principles and suits the needs of modern Islamic economies and communities.
This content is available to you

Mohd M. Billah, Ezzedine GhlamAllah and Christos Alexakis

This content is available to you

Mohd M. Billah, Ezzedine GhlamAllah and Christos Alexakis

You do not have access to this content

Muhammad Al Bashir Muhammad Al Amine

Despite the remarkable growth and development of the takaful industry in recent decades, a somewhat noticeable component missing in the industry is the trade credit takaful link. Trade credit takaful helps protect businesses, traders and financial institutions from the financial consequences of defaults, insolvencies and bankruptcies of their trading partners. The positive side towards the development of this market is that the shari’ah bases are clear if the structure is based on takaful principles, however, the technical and operational dimensions require further investigation. The chapter highlights the growing demand for trade credit takaful, the regulators’ support, its benefits and scope, its basis in shari’ah as well as the challenges ahead. Particular attention is given to the development of trade credit takaful in protecting sukuk-holders against the default of issuers or in enhancing the credit profile of some sovereigns to access the sukuk market. The chapter discusses how trade credit takaful in sukuk will not be an extension of credit default swaps in the conventional market due to the obvious differences. Similarly, the chapter highlights the central role of micro credit takaful in the development of the microfinance industry and in assisting in poverty eradication.

You do not have access to this content

Abdulazeem Abozaid

Conventional (commercial) insurance involves an intolerable magnitude of gharar (uncertainty), and hence its prohibition in shari’ah. In order to Islamize insurance, it needs to be reconstructed on a different basis so that the inherent uncertainty associated with the concept of insurance will not invalidate its contracts. This is thought to be doable only if the commutative nature (mu’awada) of insurance is converted into donation (tabarru); deeming the contributions of the policy holders as mutual donations, with the takaful company being only responsible for the administration of the takaful fund as well as the takaful operations. Nevertheless, the existing takaful structures, which supposedly adopt the said methodology, still have unresolved fiqh issues. These issues pertain to the underlying concept of takaful being genuinely of donation nature and also to the applications and practices of takaful being capable of substantially ascertaining their differences from those of the conventional insurance. The chapter scrutinizes the existing takaful structures and highlights their shortcomings in an attempt to outline a new sound model, with a special emphasis on its practicalities and applications.

You do not have access to this content

Joe W. Bradford

The chapter examines fatwa in Islamic insurance and its role as an underlying cause of regulatory capture and arbitrage. The progression of the Islamic insurance industry from one almost unanimously forbidden to a multi-billion dollar industry in less than three decades is indicative of the notable advances the industry has made. With its core principles of cooperation, mutuality and sharing of loss/gain, Islamic insurance is of particular appeal to the consumer. The chapter highlights the key obstacles preventing Islamic insurance from achieving true mutuality and cooperation, and as such truly serving the consumer for whom it was created. These obstacles include the conflation of terms in understanding mutuality under an Islamic rubric, the undue emphasis on the contractual particulars governing the consumer and the role of fatwa or lack thereof in creating regulatory capture. It covers the need for a review of the Islamic legal approaches used in the formation of fatwa in order to limit regulatory arbitrage by way of fees and charitable contributions.

This content is available to you

Edited by S. Nazim Ali and Shariq Nisar

This content is available to you

Edited by S. Nazim Ali and Shariq Nisar