Takaful Case Study

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1.5 Development Takaful in Malaysia 1.5.1 The Birth of Takaful Industry in Malaysia In the early of 1980s, the demand of the Shariah-compliant substitute to traditional insurance from Muslim public on that time has make the takaful industry start to grow in Malaysia. The establishment of the Islamic bank in 1983 also makes the takaful industry develop as a supplement of the Islamic bank’s operation. Malaysian National Fatwa Committee has claimed that the elements of Gharar (uncertainty), Riba’ (usury) and Maisir (gambling) which present in the life insurance has cause the contract of life insurance become invalid. This situation is also one of the influences that have motivated the development of takaful industry in Malaysia. In 1982,…show more content…
Moreover, as a suggestion of Special Task Force, the Malaysia’s first takaful operator was formed in November 1984. 1.5.2 The Operation of Takaful in Malaysia A common fund will be form to give mutual assistance to the members if any one of them is facing damage or loss. The money in the common fund was devoted by the members. The fund will be managed by an authorized operator of takaful who earns profit by handle the operation commercially as a business deal. Shareholders’ fund investment’s profit, the fee of agency (wakalah), takaful funds’ investment profit’s share and takaful funds’ surplus are the operator’s sources of earning. 1.5.3 Malaysian Takaful Industry after Two…show more content…
The hospitalization and healthcare cost is one of the examples of the medical treatment costs. The buyers can choose the cover for either stand-alone basis or as an additional contract to a basic family takaful plan. A certain amount of money will be devote by a person to a fund of takaful as the participative contribution (tabarru’) if he or she want to take part in Medical and Health Takaful. In order to become a member of this takaful, he or she will consent a contract (aqad). By undertake this contract, he or she is assuming agree to assist each other when any one of the members encounter unforeseen event, for example, accident. Medical and Health Takaful provide few type of covers. There are: 1. Hospital Services and Professional Fees When a person was injured or has been diagnosed that he or she had certain illness and need to spend on hospital services and professional fees such as fees of surgery, charges of intensive care unit and charges of ward, this plan will covers these expenses for that person. The limit for this plan can be maximum amount or number of

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