Conventioanl vs Islamic Insurance

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ISLAMIC LIFE INSURANCE (TAKAFUL), IT'S EVOLUTION, COMPARISON WITH CONVENTIONAL LIFE INSURANCE, AND ROLE OF DAWOO TAKAFUL ( AN INSURANCE COMPANY OFFERING LIFE INSURANC IN PAKISTAN ) FOR TAKAFUL INDUSTRY IN PAKISTAN

Table of Contents

1.0 LIFE INSURANCE/CONVENTIONAL LIFE INSURANCE 2
2.0 ISLAMIC LIFE INSURANCE2
3.0 WHY LIFE INSURANCE NECESSARY2
4.0 COMPARISON BETWEEN COVENTIONAL LIFE INSURANNCE AND ISLAMIC LIFE INSURANCE 2 4.1 HOW CONVETIONAL INSURANCE WORKS3
4.2 DIFFERENTATION OF TAKAFUL FROM CONVENTIONAL INSURANCE 3 4.3 PRONS AND CONS OF ISLAMIC INSURANCE3
4.43
4.4.1 PRONS OF ISLAMIC INSURANC3
4.4.2 CONS OF ISLAMIC INSURANCE 4
5.0 LIFE INSURANCE IN PAKISTAN 4
5.1 Takaful in Pakistan 4
6.1 INSIGHT LOOK- A TAKAFUL COMPANY IN PAKISTAN-DAWOOD FAMILY TAKAFUL5 6.2 OBJECTIVE OF DAWOOD FAMILY TAKAFUL5
6.2 SHARIAH SUPERVISORY BOARD 5
6.3 FINANCIAL ANALYSIS OF DAWOOD FAMILY TAKAFUL5
7.0 CONCLUSION5
8.0 REFERNCES5

1.0 LIFE INSURANCE/CONVENTIONAL LIFE INSURANCE

Life insurance is an undertake between the policy holder and the underwriter, where the insurance firm commitments to pay a selected beneficiary a quantity of money (the "benefits") upon the death of the individual person. Looking on the contract, other effects such as period ill health or critical wellness may also trigger payment. In return, the policy bearer agrees to pay a specified amount (the "premium") at every day intervals or in lump sums. In many countries, death outgoes such as observances are enclosed in the premium; even so, in the United States the predominated form only defines a lump sum to be paid off the insurer’s death (1). The valuable for the policy owner is the 'peace of mind' in sapient to that the modification of the various persons will not issue in non financial adversity. Life insurance policy are lawful contract bridge and the price of the contract exposit the limits of the someone consequences. Specific exceptions are often written into the contract to end the financial obligation of the insurance firm; common examples are claims connecting putting to death, fake, state of war, rioting and civil commotion. In this era of modern finance too many financial products and services are offered by the banks, building societies and financial corporate and one of them is life insurance. New scenarios are developing with modern techniques of offerings for the potential customers. 2.0ISLAMIC LIFE INSURANCE

Takaful (Arabic: Al-Takaful) is an Islamic insurance concept which is grounded in Islamic muamalat (Islamic banking), observing the rules and regulations of Islamic law. This concept has been practised in various forms for over 1400 years.(2) A premier goal of Takaful system and its goods is to strike the right play with Muslim customers who may find formal products unacceptable and get them reluctantly. The takaful system of rules and product may be attractive to them. Ibn Abidin (1784-1836) was the basic learner in the Muslim world to talk about the message and lawful fictional character of insurance policy Islamicity of insurance has been below give-and-take since then. Popular opinion regarding lawfulness, approval, and adaptability of insurance are numerous. Newly, even so, a consensus was emergent for conforming insurance in the name of takaful and commonality. As a issue, several Islamic takaful and commonality companies have been accepted since 1979 The Islamic Insurance concept as known as Takaful (an Arabic word meaning “guaranteeing each other“) is a shariah compliance mutual risk transfer arrangement which involves participants and operators. Shariah is based on the Qur’an and Assunah. Takaful as a concept that some extent is similar to conventional mutual risk sharing such as Mutual Insurance and Protection and Indemnity. It is a mutual sharing of risk based on the concept of Taawun (Mutual Protection). Takaful do not allow what is called Gharar (uncertainty or speculation) and...
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