Takaful

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The Issue
The Islamic world is huge with over 1.2 billion people. Except for a handful of countries in Southeast Asia and the Middle East, there are high and rising poverty levels in both urban and rural parts of most Muslim countries. Poverty levels have also been associated with high inequality alongside low productivity. For example, in Indonesia alone that is world’s largest Muslim population, over half of the population which is about 129 million are poor or vulnerable to poverty with incomes less that US$2 a day. Bangladesh and Pakistan account for 122 million each followed by India at approximately 100 million Muslims below poverty line. In Malaysia, statistics have also shown that many farmers belong to the hardcore poor group in the country that is due to financially stable after hardships occur such as drought, flood and other calamities that is beyond the control among them. (Dakar Senegal, 2007). Agriculture sector imposed in the large risks or also known as catastrophic risks. Fore example , natural perils liked changes in weather, droughts, floods, and those biological nature such as disease, pests that is among the causes of large losses in this sector. Deputy Prime Minister Tan Sri Muhyiddin Yassin (2012), said that the estimated postharvest losses of highly perishable crops such as fresh fruits, vegetables and flowers in developing countries are about 40% about three times more than the losses faced by developed countries. So, it is important to have the idea that is to provide insurance coverage for farmers whose crops were destroyed by natural disasters such as floods or dry spells to help them or bear them from that losses

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3.0Maqasid Shariah and Financial Inclusion
Shariah principles can best be understood from an angle of it is destination for, namely the purpose and the objective of Islamic law (maqasid al-shariah). This also can be understood that Maqasid al-Shariah is the objectives and the rationale of the Shariah. According to Imam Al-Ghazāli (d.1111) “The objective of the Sharī’ah is to promote the well-being of all mankind, which lies in safeguarding their faith (dīn), their human self (nafs), their intellect (‘aql), their posterity (nasl) and their wealth (māl). Whatever ensures the safeguard of these five serves public interest and is desirable.” (Chapra, 2000). Al-Shatibi approves al-Ghazali’s list and sequence, thereby indicating that they are the most preferable in terms of their harmony with the essence of Shariah. Generally, Shariah is predicated on benefits of the individual and that of the community, and its laws are designed so as to protect these benefits, and facilitate improvement and perfection of human lives’ conditions on earth. This perfection corresponds to the purposes of the Hereafter. The uppermost objectives of Shariah rest within the concept of compassion and guidance, that seeks to establish justice, eliminate prejudice and alleviate hardship. It promotes cooperation and mutual supports within the family and society at large. This is manifested in the realization of maslahah (public interest) which the Islamic scholars have generally considered to be the all-pervasive value and objective of the Shariah and is to all intents and purposes synonymous with compassion. Maslahah sometimes connotes the same meaning as maqasid and the scholars have used the two terms almost interchangeably (AbdelKader, 2003). Maslahah is one of the juristic devices that have always been used in Islamic legal theory to promote public benefit and prevent social evils or corruption. The plural of the Arabic word maslahah is ‘masalih’ which means welfare, interest or benefit. Literally, maslahah is defined as seeking the benefit and repelling harm. The words maslahah and manfa`ah are treated as synonyms. Manfa`ah (benefit or utility), however, is not technical meaning of maslahah. What Muslim jurists mean by maslahah is the seeking of benefit and the repelling of harm as directed by the...
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