Islamic Insurance Products (eBook)

Exploring Takaful Principles, Instruments and Structures

Mohd Ma'Sum Billah (Autor)

eBook Download: PDF

2019 | 1st ed. 2019
XXVIII, 504 Seiten
Springer International Publishing (Verlag)
978-3-030-17681-5 (ISBN)

Infos

The growth of Islamic finance today is undeniable given its services, product innovation, performance and achievements, with the Islamic insurance market being no exception; it has retained global market recognition in a parallel platform as Islamic finance moves forward. There is much written regarding the Islamic insurance system, but rarely do researchers present the various Islamic insurance products and their structures in one collective place. This book is a timely addition in meeting contemporary market demands by providing a much-needed overview of the Islamic insurance products and their Shari'ah compliant structures. This book would be of interest to academics, researchers, students and professionals who are seeking to understand the products offered. 

Mohd Ma'Sum Billah is Professor of Finance and Insurance at the Islamic Economics Institute, King Abdulaziz University, Saudi Arabia. He is a member of various organizations and groups, including the working group of the Shari'ah Compliance functions, the AAIOFI Governance & Ethics Board (AGEB), AAIOFI, Bahrain and the Audit Committee, ACIG, Saudi Arabia alongside being an advisor to ICMIF, London. He is an author of 31 books and chapters in several books in the areas of Islamic and comparative finance, insurance, investment, capital markets, business, asset management and e-Commerce. He has also published more than 150 articles in Islamic and comparative finance, banking, capital markets, insurance, business and social finance and completed nine funded research projects successfully on different issues of Islamic and comparative finance and commerce funded by the Malaysian government and the Central Bank. He has presented more than 200 papers and lectures at conferences, summits, conventions, seminars, executive workshops and forums in the specialized issues of Islamic finance, insurance, capital market, investment, business, social finance and cryptocurrency.

Inhalt

Foreword 6
Preface 8
Acknowledgements 11
Contents 13
About the Author 16
List of Figures 17
List of Tables 19
Introduction 21
Part I: An Overview of Takaful and Re-takaful 23
Chapter 1: An Overview of Takaful Products 24
1.1 Introduction 24
1.2 The Takaful Niche 25
1.3 Socio-economic Foundation of Takaful 27
1.3.1 Sincerity (Ikhlas) 27
1.3.2 Shari’ah Principles 28
1.3.3 Moral Attributes 29
1.3.4 Elements of a Takaful Contract 29
1.4 Rational Outlook 30
1.5 Argument for and Against Takaful/Insurance 33
1.6 Misconceptions 35
1.7 Response to the Misconceptions 37
1.8 Further Justifications 41
1.9 Conclusion 46
Chapter 2: Re-takaful Products in a Nutshell 49
2.1 Introduction 49
2.2 Re-Takaful Product 50
2.3 Parties to Re-Takaful Contracts 52
2.4 Objectives of Re-Takaful Products 52
2.5 Shari’ah Requirements of Re-Takaful 54
2.6 Principles of Re-takaful 55
2.6.1 Principles of Contract (‘Aqd) 55
2.6.2 Principles of Liability 56
2.6.3 Principles of Wakalah (Agencies) 56
2.6.4 Principles of Daman (Guarantee) 56
2.6.5 Principles of Mudharabah 57
2.6.6 Tabarru’ 57
2.7 The Corporate Paradigm of Re-takaful 57
2.8 Operational Mechanisms 58
2.9 General Re-takaful Products 60
2.9.1 Fire and Property Re-Takaful 60
2.9.2 Accident Re-Takaful 60
2.9.3 Marine Re-Takaful 60
2.9.4 Automobile Re-Takaful 60
2.9.5 Engineering Re-Takaful 61
2.9.6 Special Risks Re-Takaful 61
2.10 Operational Mechanisms of General Re-takaful Protection 61
2.11 Basis of Operations 62
2.11.1 Mutually Agreed Participation 63
2.11.2 Tabarru’ 63
2.12 Conclusion 64
Chapter 3: Governing Principles of Takaful and Re-takaful Products 66
3.1 Introduction 66
3.2 Governing Principles of Takaful and Re-Takaful Products 67
3.2.1 General Principles 68
3.2.2 The Qur’an 68
3.2.3 The Sunnah 69
3.2.4 Ijtihad 70
3.2.5 Al-Masalehal-Mursalah 71
3.2.6 Al-‘Urf 71
3.2.7 Al-Fiqh 72
3.2.8 Sincerity 72
3.3 Absolute Shari’ah Principles 73
3.4 Moral Attributes 73
3.5 Al-‘Aqd (Contract) 74
3.6 Acts of Parliament 75
3.7 Rules of the Shari’ah Supervisory Board 75
3.8 Precedents 75
3.9 Unanimous Decision of the Islamic Scholars 76
3.10 Principles of Liability 76
3.11 Principle of Utmost Good Faith 77
3.12 Principles of Mirath and Wasiyah 77
3.13 Principles of Wakalah (Agencies) 78
3.14 Principles of Daman (Guarantee) 78
3.15 Principles of Al-Mudharabah and Al-Musharakah 78
3.16 Principles of Rights and Obligations 79
3.17 Principles of Humanitarian Law 80
3.18 Principles of Mutual Co-operation 80
Part II: General Takaful Products 83
Chapter 4: Preview of General Takaful 84
4.1 Introduction 84
4.2 An Overview 86
4.3 Framework of General Takaful Products 87
4.4 Shari’ah Rulings 88
4.4.1 Gharar 88
4.4.2 Maisir 89
4.4.3 Riba 89
4.5 Problems and Issues 89
4.6 Conclusion 90
Chapter 5: Motor Takaful 91
5.1 Introduction 91
5.2 Motor Takaful Scheme 92
5.2.1 Contract of Motor Takaful Scheme 92
5.2.2 Procedure for Application 93
5.2.3 Scope of Cover 93
Private Third Party 93
Private Comprehensive 94
5.2.4 Premium 94
5.2.5 Claims 95
Type of Claim 95
Related Documents 95
Claim Procedure 96
5.2.6 Benefit 97
5.3 Motor Takaful for Private Cars 98
5.3.1 Conditions Applied to the Whole Type of Contract 98
5.4 Types of Vehicle 101
5.4.1 Coverage 101
Loss or Damage to a Vehicle 101
Liability to Third Parties 103
5.5 Motor Takaful for Motorcycles 104
5.5.1 Conditions Applied to the Whole Certificate 104
The Contract 104
Notice to Be Made in Writing 104
Security and Maintenance of the Vehicle 104
Notices of Claim 105
Claim Under Damage of Property 105
Cancellation of Contract 105
Rateable Proportion 105
Arbitration 106
Conditions Precedent to Liability 106
Replacement Parts 106
5.6 Types of Motorcycle 107
5.6.1 Coverage 107
Loss or Damage 107
Legal Liability to Third Parties 108
5.7 Motor Takaful Scheme for Commercial Vehicles 110
5.7.1 Criteria for Selection of Corporation to Be Covered 110
5.7.2 Conditions Applied to All Types of Contract 110
5.7.3 Coverage 110
5.7.4 Loss or Damage 111
Liability to Third Parties 111
5.8 Conclusion 112
Chapter 6: Accident Takaful 113
6.1 Introduction 113
6.2 Central Ideas 114
6.2.1 Life Insurance 114
6.2.2 General Insurance 115
6.3 Shari’ah Rulings 117
6.4 Conclusion 117
Chapter 7: Fire Takaful Plan 119
7.1 Introduction 119
7.1.1 House Owner Takaful Scheme 120
7.1.2 Householder Takaful Scheme 121
7.1.3 Basic Fire Takaful Scheme 121
7.1.4 Fire Takaful for Squatter Houses 121
7.2 Scope of Cover 122
7.2.1 Determination of Sum Covered 122
Building and/or Plant and Machinery 122
7.2.2 Stock 122
7.3 Principal Certificate Exclusions 123
7.4 Shari’ah Rulings 123
7.5 Practical Scenario 125
7.5.1 How to Value a Building and Its Premiums 125
7.6 Claims Procedure 126
7.7 Recommendations 126
7.8 Conclusion 127
Chapter 8: Experience in Fire Takaful 128
8.1 Introduction 128
8.2 Fire Takaful, the Product 129
8.2.1 Basic Fire Takaful Scheme 130
8.2.2 House Owner Takaful Scheme 130
8.2.3 Household Takaful Scheme 130
8.2.4 Special Owner Takaful Scheme 130
8.3 Distribution of Profit Ratio for the Fire Takaful Plan 131
8.4 Premium Rating on Buildings 132
8.5 Claims Procedure 133
8.6 Governing Principles 134
8.6.1 Mutual Cooperation 134
8.6.2 Free from Prohibited Element 134
8.6.3 Distribution of Wealth 135
8.6.4 Trust 135
8.7 Recommendations 135
8.8 Conclusion 135
Chapter 9: Medical Takaful Plan 137
9.1 Introduction 137
9.2 Central Idea 138
9.3 Shari’ah Rulings 141
9.4 Applications 143
9.5 Coverage Under the Health Takaful Plan 144
9.5.1 Diagnosis of Critical Illness 144
9.5.2 Death 145
9.5.3 Total and Permanent Disabilities 145
9.5.4 Accident 146
9.5.5 Suicide 146
9.5.6 Funeral Expenses 146
9.5.7 Hospital Daily Cash Allowances 146
9.5.8 Cash Withdrawal 147
9.6 Types of Critical Illness 147
9.6.1 Heart Attack 147
9.6.2 Stroke 147
9.6.3 Coronary Artery Bypass Surgery 148
9.6.4 Cancer 148
9.6.5 Kidney Failure 148
9.6.6 Fulminant Hepatitis 148
9.6.7 Major Organ Transplant 149
9.6.8 Paralysis 149
9.6.9 Multiple Sclerosis 149
9.6.10 Primary Pulmonary Arterial Hypertension 149
9.6.11 Blindness 149
9.6.12 Heart Valve Surgery 149
9.6.13 Deafness 149
9.6.14 Aorta Surgery 150
9.6.15 Loss of Speech 150
9.6.16 Alzheimer’s Disease 150
9.6.17 Major Burns 150
9.6.18 Coma 150
9.6.19 Terminal Illness 151
9.6.20 Motor Neurone Disease 151
9.6.21 HIV Infection from Blood Transfusion 151
9.6.22 Parkinson’s Disease 151
9.6.23 Chronic Liver Disease 152
9.6.24 Chronic Lung Disease 152
9.6.25 Accidental Head Injury Resulting in Major Head Trauma 152
9.6.26 Aplastic Anaemia 152
9.6.27 Muscular Dystrophy 153
9.6.28 Benign Brain Tumour 153
9.6.29 Viral Encephalitis 153
9.6.30 Poliomyelitis 153
9.6.31 Brain Surgery 153
9.6.32 Acute Bacterial Meningitis 153
9.6.33 Other Serious Coronary Artery Disease 154
9.6.34 Apallic Syndrome 154
9.6.35 Occupationally Acquired HIV Infection 154
9.6.36 Full-Blown Aids 154
9.7 Conditions of Participation 154
9.8 Packages Available Under the Health Takaful Plan 155
9.9 Takaful Contributions 156
9.10 Recommendations 157
9.10.1 Expansion of the Types of Critical Injuries 157
9.10.2 Broaden the Coverage Scope 157
9.10.3 Longer the Duration of the Participation 158
9.11 Conclusion 158
Chapter 10: Health Takaful Rider Plan 160
10.1 Introduction 160
10.2 The Product 161
10.3 Contract 163
10.4 Coverage 165
10.5 Claim Procedures 166
10.6 Fund Management 167
10.7 The PRIA of Family Takaful 168
10.7.1 Expenses Fund 168
10.7.2 Risk Fund 169
10.7.3 Special Fund 169
10.8 Conclusion 169
Chapter 11: Group Takaful Plan 171
11.1 Introduction 171
11.2 Foundation of Group Takaful 172
11.3 Products 172
11.3.1 Group Family Takaful Plan 172
11.3.2 Group Medical Takaful Plan 173
Proposal and Declaration Form 173
Age Limit 174
Exclusions 174
11.3.3 Group Family Takaful Plan (Credit) 174
Scope of Cover 175
Eligibility 175
Takaful Contributions 175
11.4 Payment of Takaful Benefits 175
11.4.1 How to Participate 175
11.4.2 Al-Mudharabah 175
11.5 Practicality 175
11.6 Shari’ah Ruling 176
11.6.1 Mutual Co-operation 176
11.6.2 Misappropriation of Wealth 176
11.6.3 Flexibility 177
11.6.4 Contract 177
11.7 Conclusion 177
Chapter 12: Group Takaful Plan for Health Care 179
12.1 Introductions 179
12.2 Central Idea 180
12.3 Medical Takaful Paradigm 180
12.3.1 Person Eligible for Takaful Medical 180
12.3.2 Period of Cover and Renewal 181
12.3.3 Benefits in Takaful Medical 181
12.3.4 Description of Benefits 181
Hospital Room and Board 181
Intensive Care Unit 181
Miscellaneous Hospital Services 181
Surgical Fees 182
In-Hospital Physician’s Visits 182
Pre-Hospitalisation Diagnostic Services Specialist Consultation 182
Ambulance Fees 182
Post-Hospitalisation Treatment 182
Emergency Out-Patient Accidental Treatment 183
Government Hospital Daily Cash Allowance 183
Funeral Expenses 183
12.3.5 Type of Package 183
12.3.6 Termination of Cover 183
12.3.7 Cancellation 183
12.3.8 Procedures 185
12.4 Description of Takaful Hawa 185
12.4.1 Eligibility 185
12.4.2 Benefits 185
12.4.3 Period of Cover and Renewal 186
12.4.4 Description of Benefits 186
Lump-Sum Benefit 186
Additional Lump-Sum Benefit 186
Reconstructive Breast Surgery Benefit (Per Breast) 186
Daily Cash Allowance for Hospitalisation 186
Annual Medical Check-Up for Cancer 187
Funeral Expenses 187
12.4.5 Termination 187
12.4.6 Cancellation 187
12.5 Shari’ah Rulings 187
12.6 Practicalities 188
12.7 Experiences 189
12.8 Recommendations 190
12.9 Conclusion 191
Chapter 13: Pilgrimage (Hajj) Takaful 193
13.1 Introduction 193
13.2 Central Idea 194
13.3 Shari’ah Ruling 195
13.4 Group Takaful Scheme for Pilgrimage Services 196
13.5 Distribution of Excess 196
13.6 Compensation Category (Table 13.1) 197
13.7 Exception 197
13.8 Conclusion 198
Chapter 14: Hajj Badal (Substitute Hajj) Takaful 200
14.1 Introduction 200
14.2 Conditions of Hajj Badal 201
14.2.1 Sickness Rendering a Person Unable to Throw Jumrah 202
14.3 Guidelines for Seeking Representatives 203
14.3.1 Sickness Rendering Someone Unable to Carry Out Tawaf and Saie 203
14.3.2 Sickness Rendering Someone Unable to Stay Overnight at Muzdalifah and Mina 204
14.4 Guidelines of Hajj Badal 204
14.5 Health Examination 204
14.6 Methods of Examination 205
14.7 A Study on Pilgrims After Pilgrimage 206
14.8 Conclusion 207
Chapter 15: Ziarah (Visit) Takaful 209
15.1 Introduction 209
15.2 The Ziarah Takaful Plan 210
15.3 Requirements of Takaful Ziarah 211
15.3.1 Participant 211
15.3.2 Scope of Coverage 211
15.3.3 Participation in the Ziarah Takaful Plan 211
15.3.4 Information on the Participant 211
15.3.5 Specialities of the Ziarah Takaful Plan 212
15.4 Benefits of the Ziarah Takaful Plan 213
15.4.1 Package at RM 50 213
15.4.2 Package at RM 100 214
15.4.3 Package at RM 150 215
15.4.4 Package of RM 200 216
15.5 Mode of Payment 216
15.5.1 Salary Deduction 216
15.5.2 Standing Instruction 217
15.5.3 GIRO or Any Other Bank 217
15.5.4 Cheque and Cash 217
15.6 Qur’anic Ayat and Hadith 217
15.7 Conclusion 218
Chapter 16: Group Islamic Cashline Takaful 220
16.1 Introduction 220
16.2 Preview 221
16.3 The Product 222
16.4 Model Structure: Takaful Ikhlas Experience 223
16.5 Contribution Treatment 224
16.6 Profit 224
16.7 Surplus (from the Risk Fund) 225
16.8 Claim Process 226
16.8.1 Types of Claim 226
16.8.2 Claim Procedure 226
16.8.3 Supporting Documents (www.Takaful-ikhlas.com.my) 226
16.9 Benefits of the Scheme 227
16.10 Responsibilities of Takaful Ikhlas 227
16.11 With Ikhlas Group Islamic Cashline Takaful Scheme 228
16.12 Conclusion 228
Chapter 17: Sukuk Takaful Plan 230
17.1 Introduction 230
17.2 Risk Factors in Sukuk 231
17.2.1 Market Risk 231
17.2.2 Credit Risk 231
17.2.3 Risks to Shari’ah Compliance 232
17.2.4 Management and Operational Risk 232
17.2.5 Organisational Rigidity Risk 233
17.3 Managing Sukuk Risks 233
17.3.1 Organisational Challenges 233
17.4 Conclusion 235
Chapter 18: Online Takaful Business 236
18.1 Introduction 236
18.2 Central Idea 237
18.3 Shari’ah Rulings 237
18.4 Functional Structure (18.1) 239
18.5 Takaful Products 240
18.5.1 Online Buying or Renewal of Takaful Products 240
18.6 Recommendations 241
18.7 Conclusion 244
Chapter 19: Digital Currency Takaful 246
19.1 Introduction 246
19.2 Risk Factors in Halal Digital Currency 247
19.2.1 Legal 247
19.2.2 Technical 247
19.2.3 Financial 247
19.2.4 Bankruptcy 247
19.2.5 Management 248
19.2.6 Code Change 248
19.2.7 Malpractice 248
19.2.8 War Risk 248
19.3 A Cryptocurrency Risk Plan 249
19.4 Conclusion 252
Part III: Family Takaful Products 253
Chapter 20: Preview of Islamic Life Insurance Products 254
20.1 Introduction 254
20.2 The Problem 255
20.3 Objectives 256
20.4 Life Insurance: Conventional Versus Islamic 258
20.5 Shari’ah Rulings 260
20.6 Misconceptions 262
20.7 Negative Views 262
20.8 Grounds 263
20.9 The Fatwa by Shaikh Al-Azhar 265
20.10 Justification 266
20.11 Analysing the Fatwa of Sheikh Al-Azhar (Al-Iqtisadul Islami, Supra) 269
20.12 Further Justification 271
20.13 Conclusion 274
Chapter 21: Family Takaful Plan 277
21.1 Introduction 277
21.2 Central Idea 278
21.3 Shari’ah Rulings 281
21.4 Application 284
21.5 Recommendations 286
21.6 Conclusion 287
Chapter 22: Personal Accident Takaful 288
22.1 Introduction 288
22.2 Shari’ah Rulings 289
22.2.1 No Riba Culture 289
22.2.2 Al-Tabarru’ 290
22.2.3 Al-Mudharabah 290
22.2.4 Al-Wakalah 291
22.2.5 Al-Musyarakah 291
22.3 The Scheme Outlook 291
22.3.1 Scope of Cover 291
22.3.2 Death 291
22.3.3 Permanent Disablement 292
22.3.4 Medical Expenses 292
22.4 Ratings 292
22.4.1 Extra Loading to Be Charged for Additional Extension of Cover Requested 292
22.4.2 Group Personal Accident Takaful Scheme (GPA) 293
22.4.3 Group Personal Accident Takaful (Short Period) 294
22.5 Occupation 294
22.5.1 Class 1 295
22.5.2 Class 2 295
22.5.3 Class 3 295
22.6 Limitation to Benefits 295
22.7 Underwriting 296
22.7.1 Diseases and Physical Disabilities 296
22.7.2 Abnormal Risk 296
22.7.3 Blindness in One Eye 296
22.7.4 Loss of One Arm 297
22.7.5 Deafness in One Ear 297
22.7.6 Ambiguous Occupation 297
22.8 Conclusion 297
Chapter 23: Critical Illness Takaful 299
23.1 Introduction 299
23.2 Product Preview 300
23.3 Coverage from Different Operators 300
23.3.1 Takaful Ikhlas 300
23.3.2 Takaful Malaysia 300
23.3.3 Takaful National 300
23.3.4 Prerequisites for Buying the Policy 301
23.3.5 Illnesses Covered by the Policy 301
23.3.6 Contribution 302
Other Cases 303
23.3.7 The Product Structure 303
23.3.8 Withdrawal 304
23.3.9 Claim 304
Accelerated Plan 305
Additional Plan 305
23.3.10 Conditions 306
23.3.11 Death of the Policyholder 306
23.3.12 Benefits 307
23.4 Conclusion 307
Chapter 24: Group Students’ Takaful Plan 309
24.1 Introduction 309
24.2 Scope of Cover 311
24.3 Benefits Schedule 311
24.4 Exception 313
24.5 Claim Procedures 314
24.6 Conclusion 315
Chapter 25: Education Takaful 317
25.1 Introduction 317
25.2 Product Outlook 318
25.2.1 Conditions 318
25.2.2 Maturity Period 318
25.2.3 Payment 318
25.2.4 Extra Protection 319
25.2.5 Payment Procedure 319
Salary Deduction 319
Bank Standing Instruction 319
Instalment Procedure 319
Experience (Takaful Malaysia) (Table 25.1) 320
Shari’ah Authority and Compliance 321
Analysis from the Articles 322
25.3 Conclusion 323
Chapter 26: Senior Citizen Takaful 325
26.1 Introduction 325
26.2 Scope of Coverage 325
26.2.1 Accidental Death Benefit 325
26.2.2 Natural Death Benefit 326
26.2.3 Special Feature 326
26.2.4 Term and Age Limit 327
26.2.5 Suggested and Treatment of Contributions 327
26.2.6 Profit and Surplus Contribution 327
26.3 Conclusion 328
Chapter 27: Endowment (Ma’asyi) Takaful 329
27.1 Introduction 329
27.2 The Product 329
27.3 Takaful Ma’asyi (Endowment) Plan 330
27.3.1 Benefits 330
27.3.2 Participation 331
27.3.3 The Waqf Period 331
27.3.4 Cessation of Benefits 331
27.3.5 Product Package 331
Hasanah Package 331
Ahsan Package 332
27.3.6 Challenge 332
27.4 Conclusion 333
Chapter 28: Foreign Worker Takaful 334
28.1 Introduction 334
28.2 The Product 334
28.2.1 The Benefit Is Divided into Three Sections 335
28.2.2 Contract 335
28.2.3 General Condition 336
28.2.4 General Exception (Foreign Worker Compensation Scheme, Takaful Certificate, n.d.) 336
28.2.5 Claim Procedure 336
28.2.6 Share of Net Surplus 337
28.2.7 Benefits 337
Section 1 337
Exception 338
Section 2 338
Repatriation Expenses 338
Section 3 339
Personal Accident Takaful (Off-Work Hours). 339
Special Provision to Section 3 340
Special Conditions to Section 3 340
Exceptions to Section 3 341
28.3 The Experience of Takaful Nasional of the Product 341
28.4 Recommendation 341
28.5 Shari’ah Ruling 343
28.5.1 Mutual Cooperation 343
Promotes Mutual Cooperation 343
28.5.2 Facilitates and Makes Life Easy 343
28.5.3 Contract 344
28.6 Conclusion 344
Chapter 29: Mortgage Takaful 345
29.1 Introduction 345
29.2 Mortgage Takaful Plan 346
29.3 Shari’ah Rulings on Application of Mortgage 346
29.3.1 Ijma’ of Scholars 347
29.4 Rational Outlook of Mortgage 347
29.5 Benefits of the Plan 348
29.5.1 To the Borrower 348
29.5.2 To the Financier 348
29.6 Scope of the Cover 349
29.7 Terms of Participation 349
29.7.1 Proposal and Declaration Form 349
29.7.2 Age 349
29.7.3 Period of Takaful 349
29.7.4 Limited Wasi Declaration Form 350
29.8 Joint Financing/Loan 350
29.9 Contribution 351
29.9.1 Rating the Contribution 351
Payment by Instalments 351
Backdating the Age 352
Difference of Contribution by a Margin of RM 50.00 352
29.10 Underwriting 352
29.11 Non-underwriting Procedure 352
29.12 Covering Financing Period Less Than Five Years 352
29.12.1 Covering Amount 353
29.12.2 Guarantee 353
29.12.3 Effective Date of Cover 353
29.12.4 Issuance of Certificate 354
29.12.5 Surrender 354
29.12.6 Payment of Benefit 355
29.13 Conclusion 355
Chapter 30: Breast Cancer Takaful (Takaful Hawa) 357
30.1 Introduction 357
30.2 Breast Cancer Takaful (Takaful Hawa) Plan 358
30.2.1 Product Brief 358
30.2.2 Shari’ah Rulings 358
As-Sunnah 359
30.2.3 Eligiblity 359
30.2.4 Policy Period and Renewal 360
30.2.5 Geographical Territory 360
30.2.6 Additional Persons Covered 360
30.2.7 Benefits 360
30.2.8 Description of Benefits 361
Lump Sum Benefit 361
Additional Lump Sum Benefit 361
Reconstructive Breast Surgery Benefit (Per Breast) 362
Daily Cash Benefit for Hospitalisation 362
Additional Daily Cash Benefit for Hospitalisation 362
Annual Cash Allowance for Cancer Screening 362
Funeral Expenses 362
30.2.9 Exclusion 362
30.2.10 Effect of Misstatement of Age 363
30.2.11 Termination 363
30.2.12 Alteration 364
Cancellation (Fig. 30.1) 364
30.2.13 Applicable Law 364
Legal Proceedings 364
Currency Exchange Rate 364
Lodging Complaints with the Insurance Mediation Bureau 364
30.2.14 Experience (Fig. 30.2) 365
30.3 Recommendation 367
30.4 Conclusion 368
Chapter 31: Pregnancy Takaful (Takaful Wiladah) 369
31.1 Introduction 369
31.2 Product Brief 370
31.3 Shari’ah Rulings 370
31.4 Terms and Conditions 371
31.5 Contributions 371
31.6 Modes of Payment 372
31.6.1 Investment of the Contribution and Distribution of Profits 372
31.7 Takaful Benefits Payable 373
31.7.1 Maternity 373
Exceptions 374
31.7.2 Pregnancy Complications 374
Exceptions 374
31.7.3 Congenital Anomalies 374
Exceptions 375
31.7.4 Death 375
Exceptions 375
31.7.5 Funeral Expenses 375
31.8 Recommendations 377
31.9 Conclusion 378
Chapter 32: Saving Takaful (Takaful Mesra) 379
32.1 Introduction 379
32.2 The Product 379
32.3 Takaful Mesra Niche 380
32.4 Issues Related to the Takaful Mesra Plan 383
32.5 Analysing the Issue 384
32.6 Shari’ah Rulings 384
32.7 Application 385
32.8 Conclusion 387
Chapter 33: Unit Trust Takaful 388
33.1 Introduction 388
33.2 Risk Management 389
33.2.1 Speculative and Pure Risk 389
33.2.2 Insuring Speculative Risk 390
33.2.3 Ta’awun Concept 390
Mutual Responsibility 390
33.2.4 Mutual Co-operation 391
33.2.5 Mutual Protection 392
33.3 Mechanisms of Unit Trust Takaful 392
33.3.1 Structure of the Scheme 393
33.4 Conclusion 394
Chapter 34: Online Family Takaful 395
34.1 Introduction 395
34.2 The Product 396
34.3 Shari’ah Rulings 396
34.4 Product Analysis 398
34.5 Underwriting Mechanism 399
34.6 Recommendations 399
34.7 Conclusion 402
Part IV: Re-takaful Products 404
Chapter 35: Re-takaful Products 405
35.1 Introduction 405
35.2 The Re-takaful Paradigm 406
35.3 Objectives 407
35.4 Structure 407
35.5 Shari‘ah Rulings 409
35.6 Performance and Size of Re-takaful Industry 410
35.7 Conclusion 412
Chapter 36: Structure of Re-takaful Products 414
36.1 Introduction 414
36.2 The Re-takaful Paradigm and Its Shari’ah Concern 415
36.3 Corporate Governance: The Shari’ah Supervisory Council 417
36.4 Experience of a Re-takaful Operator: Asean Re-takaful International Ltd (ARIL) 418
36.5 Conclusion 419
Chapter 37: Management of the Re-takaful Fund 420
37.1 Introduction 420
37.2 Shari’ah Rulings 421
37.3 Unique Characteristics of Re-takaful 423
37.3.1 Sincerity 423
37.3.2 Absolute Shari’ah Principles 423
37.3.3 Moral Attributes 424
37.4 Elements of a Re-takaful Contract 424
37.5 Significance of Al-Mudharabah in Re-takaful 424
37.6 Governing Principles 425
37.6.1 Principles of Contract (‘Aqd) 425
37.6.2 Principles of Liability 425
37.6.3 Principles of Al-Wakalah (Agencies) 425
37.6.4 Principles of Daman (Guarantee) 426
37.6.5 Principles of Al-Mudharabah 426
37.7 Re-takaful Fund 426
Chapter 38: Investment of Re-takaful Funds 432
38.1 Introduction 432
38.2 Legality of Takaful 433
38.3 Re-takaful Fund 434
38.4 Experience of Asean Re-takaful International Limited (ARIL) 435
38.4.1 The ARIL Offers 435
38.4.2 Types of Business 435
General Re-takaful (General Reinsurance) 435
Family Re-takaful 435
Takaful Lil-Istithmar (Investment Link) 436
38.5 Portfolio Management 437
38.5.1 Istithmar Bil Awaid Al-Thaabitah (Income Portfolio) 437
38.5.2 Istithmar Bil Awaid Al-Mutawassitah (Balanced Portfolio) 437
38.5.3 Istithmar Bil Awaid Al-Murtafiah (Growth Portfolio) 437
38.6 Method of Re-takaful 437
38.7 Sources of Income 438
38.8 Re-takaful Fund Operation 438
38.9 Conclusion 438
Part V: Claim and Quantum 440
Chapter 39: Claims Procedure in General Takaful 441
39.1 Introduction 441
39.2 General Takaful in Brief 442
39.3 Principles of General Takaful 442
39.3.1 Utmost Good Faith 442
39.3.2 Participant’s Interest 442
39.3.3 Proximate Cause 442
39.3.4 Indemnity 443
39.4 General Takaful Schemes 443
39.4.1 Fire Takaful 443
39.4.2 Miscellaneous and Accident Takaful 443
39.4.3 Engineering Takaful 444
39.4.4 Motor Takaful 444
39.5 Operation of General Takaful Business 444
39.6 Examples of General Takaful Schemes 444
39.7 Claims Procedures 445
39.7.1 Duties 445
Implied Duties 445
Express Duties 445
39.7.2 Claim Forms 445
39.7.3 Proof of Loss 446
39.7.4 Claim Settlement 446
39.8 Application 446
39.8.1 Notice of Claim 446
39.8.2 Proof of Loss 447
39.8.3 Investigation 447
39.8.4 Settlement of Claim 447
39.9 Procedure for Non-Claim Takaful 447
39.9.1 Notification 447
39.9.2 Preliminary Check 448
39.9.3 Registration of Claim 448
39.9.4 Documentation and Proof of Loss 448
39.9.5 Claim Settlement 448
39.10 Procedures for Claim Takaful 448
39.10.1 Types of Claim 448
39.10.2 Liability to Third Party 449
39.10.3 Notification 449
39.10.4 Notification Form 449
39.10.5 Claim Form 449
39.10.6 Registration of Claim 450
39.11 Conclusion 450
Chapter 40: Claims Procedure in Family Takaful 452
40.1 Introduction 452
40.2 Central Idea 452
40.3 Death Claim 454
40.4 Family Rider Supplementary Claim 454
40.5 Permanent Total Disability Claim 454
40.6 Hospitalisation Claim 455
40.7 Permanent Disablement Arising of Accident 455
40.8 Distribution of Benefits of Family Takaful 455
40.9 Shari’ah Ruling 457
40.9.1 Mutual Co-operation 457
40.9.2 Misappropriation of Wealth 458
40.9.3 Flexibility 458
40.9.4 Contract 458
40.9.5 Gharar in Family Takaful 459
40.9.6 Charity 459
40.9.7 Saving for Security 459
40.9.8 Social Security 459
40.9.9 Taking Back Donation/Gift 460
40.10 Application 460
40.10.1 The Flow of Contribution 460
40.11 Data 463
40.12 Recommendations 464
40.13 Conclusion 466
Chapter 41: Quantum of Damages in Takaful 468
41.1 Introduction 468
41.2 Overview 469
41.3 Al-Diya?h (Bloodwit) 469
41.4 Governing Principles of Al-Diya?h (E.C. Howard, 1977) 471
41.4.1 Al-Qatl bi al-Sabab (Indirect Homicide) 472
41.4.2 Al-Juruh (Bodily Injury) 472
41.5 Application of Al-Diya?h 473
41.6 Beneficiaries of Al-Diya?h Against Bodily Injury or Death 475
41.7 Al-Dama?n (Compensation or Damages) 476
41.8 Takaful 478
41.9 Damages: Al-Diya?h Versus Takaful 481
41.10 Al-Diya?h and Al-Dama?n Can Be the Basis for Takaful in Its Quantum of Damages 484
41.11 Benefits May Be Awarded Under Takaful Against Bodily Injury or Accidental Death 486
41.11.1 The Prophetic Ruling on damages 488
41.12 Possibilities for Adapting the Principles of al-Diya?h or al-Dama?n in Takaful 488
41.13 No Discrimination in Quantum of Damages 491
41.14 Conclusion 492
Index 495

Produkt-Details

• Erscheint lt. Verlag: 28.8.2019
• Zusatzinfo: XXVIII, 504 p.
• Sprache: englisch
• Themenwelt: Wirtschaft ► Betriebswirtschaft / Management
• Schlagworte: Claim Procedures • insurance • Islamic Finance • Islamic insurance • life insurance • Shari’ah compliant • Takaful
• ISBN-10: 3-030-17681-9 / 3030176819
• ISBN-13: 978-3-030-17681-5 / 9783030176815