Takaful and Conventional Insurance: A Comparative Study

Merazga Hachemi, Ali Ahmoudah Mohamaed, Radwan Oun Eshebani, Maysarah Abd Aziz, Wan Julia Wan Abd Ghani and Muhammad Ridhwan Ab. Aziz

International Journal of Management Sciences, 2014, vol. 2, issue 12, 543-551

Abstract: Maslahah hierarchy shows that maqasid shariah must prioritize five things: religion, life, intellect, honour and property. Social responsibility also explained that each individual is responsible for the property to be maintained, managed, and developed. Takaful is one ofthe methods that can be used for this purpose based on the contract and the application of savings for self and for emergency usage on others. The objective of this paper is to compare between Takaful and conventional insurance in terms of concept, comparative advantage, and application in the market. The methodology of this article is through qualitative research based on document analysis on relevant literatures. The general findings of this article show that there are obvious differences between Takaful and conventional insurance in protecting individual and society.

Keywords: Takaful; Conventional Insurance; Aqilah; Tabarru’; Mudharabah; Wakalah; Riba; Gharar; Maysir (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:rss:jnljms:v2i12p1

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