takaful and retakaful

Topics: Islamic banking, Sharia, Islam Pages: 25 (6134 words) Published: October 12, 2013

Table of Contents
Question 11
Question 29
2.1 Rational to Start a Takaful Operation9
2.1.1 History of Takaful Operation in Malaysia9
2.1.2 Government Transformation Plan10
2.1.3 Rational (1): Potential of Takaful Market10
2.1.4 Rational (2): Proportion of Muslim citizens in Malaysia10 2.1.5 Rational (3): The Concepts of Takaful11
2.2 Takaful Business Model of Choice 12
2.2.1 Rational (1): Big Market Potential12
2.2.2 Rational (2): Build Up Wealth for Takaful Contributors13 2.2.3 Rational (3): Benefits of Hybrid Wakalah Mudarabah Model13 2.3 Companies Background14
2.3.1 Current Company Background14
2.3.2 New Takaful Operating Company Background14
2.3.4 Business Background15
2.3.5 Shareholder’s Background15
2.4 Propose Business & Shareholding Structure17
2.4.1 Propose Business17
2.4.2 Shareholding Structure Table17
Below is detail of each shareholder and amount of contribution to the capital of company.17 2.4.3 Board Of Director18
2.5 Business Plan18
2.5.1 Management Expenses Strategy18
2.5.2 Products Offering18
2.5.3 Distribution Strategy20
2.5.4 Business Projection21
2.6 Organization structure and organization chart22
2.6.1 Organization Structure 22
2.6.2 Organization Chart23
2.7 Strategy on talent development1
2.8 Shariah Governance and Management2
2.9 Retakaful Management3
2.10 Investment of Takaful Fund3
2.11 Valuation of Liabilities4
2.12 Claims Management4
References & Appendix5
Question 1

1. Discuss the evolution of Islamic ethics and the application of its principles for managerial decision making. How are these principles applied in the case of Islamic financial institutions / Companies1.1 Company Background

Ethics is a set of moral principle which distinguishes what is right and what is wrong, what is moral and what is immoral. If we put Ethic in the business is means a normative displace, whereby particular ethical standard are formulated and then applied. Business ethics specific the judgment of what is right and wrong, it calms about what ought to be done and what ought not to be done. Basically it concerned about the study of right and wrong, good and bad, and just and unjust in business. From the perspective of Islam, it ethical value is emphasis in all aspects of human life. Islamic strongly stress the observance of ethical and code in human behavior. Moral principles and codes of ethics are repeatedly stresses throughout the Holy Qur’an. Besides, there are numerous teaching of the Prophet (sws) which cover the area of moral and ethical values and principle.1 You are the best nation that has been raised up for mankind: you enjoin right conduct, forbid evil and believe in Allah. (3:110) I have been sent for the purpose of perfecting good morals. (IbnHambal. 8595) The ethical standard to which Islamic business operate reflect the same standard and principle of the Qur’an. Islamic business must operate with fairness and integrity and treating every one equally. Islamic business also requires for truthfulness, honestly and fair dealing in business activity which have wide-ranging implication across the full spectrum of business activity from advertising for the after sales customer service. Islamic companies must comply with the principle of trusting others to be as good as theyword. However, the responsibility on the business to cover their liabilities promptly, honoring their word with installment payment, given the exclusion of credit facilities.The lay stress on the partnership approach to business is further emphasis by the need for companies to keep on eyes open after their investor’sinterests, thus protecting investors whenever possible from dharar (any kind of harm). The stakeholder’s element of Islamic financing is reflected in the onus on working in tandem with other businesses whenever possible, while markets should generally be free and prices competitive. The advantages of Islamic ethic is to capitalize on short term...

References: Bank Negara Malaysia Takaful (2012) Guidelines on Valuation Basis for Liabilities of Family Takaful Business. Retrieved from:
http://www.bnm.gov.my/guidelines/02_insurance_takaful/03_prudential_stds/21_guideli nes_val_basis_fam_tak.pdf
Dawood Yousef Taylor (2005) Takaful In The New Millennium. ICMIF Takaful. Retrieved from: http://www.kantakji.com/fiqh/Files/Insurance/D304.pdf
Department of Statistics, Malaysia (2010) Social & Demography
Dr Sabahahuddin Azmi (2013). An Islamic Approach to business Ethics. Retrieve from: http://www.renaissance.com.pk/Mayviewpoint2y5.htm
George F.Hourani (2007)
Government Transformation Plan (2013) 2012 Annual Report. Retrieved from: http://www.pemandu.gov.my/gtp/
Islamic Banking and Takaful Department, Bank Negara Malaysia (2004) 20 Years Experience Of Malaysian Takaful
Iqbal, Zamir, and Abbas Mirakhor(2007). An Introduction to Islamic Finance: Theory and Practice. Singapore: Wiley.
Insurance Info Family Takaful. Retrieved from http://www.insuranceinfo.com.my/choose_your_takaful/protect_your_family/family_taka ful.php?intPrefLangID=1&
Parvez, Zahid (2007)
Rice, G(1999). “Islamic ethics and the implications for business”. Journal of Business Ethics 18: 4
Mufti Muhammad Taqi Usmani (2004)
Muhammad Yusuf Saleem (2012). Islamic Commercial Law. John Wiley & Sons
Rifaat Ahmed Abdel Karim, Simon Archer (2007)
Simon Archer, Rifaat (2009) Takaful Islamic Insurance: Concepts and Regulatory Issues. John Wiley & Sons
Syarikat Takaful Malaysia (2012) 2011 Annual Report
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