Permissible risk in takaful

KULIYYAH OF ECONOMICS AND MANAGEMENT SCIENCES

FIN 4030
PRINCIPLES AND PRACTICES OF TAKAFUL AND RETAKAFUL

PERMISSIBLE RISK IN TAKAFUL

ASYRAF ARIF BIN HUSSAIN 1223843
MUHAMMAD ARIF BIN AZMI 1222281

SECTION 4
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INSTRUCTOR
ASSOCIATION PROFESSOR DR NURDIANAWATI IRWANI ABDULLAH

TABLES OF CONTENT
NO
CONTENT
PAGE
1
BACKGROUND OF STUDY

1
2
LITERATURE REVIEW
MEANING OF RISK
SHARIAH STOCK SCREENING
FACTORS AFFECTING RISK RATING
UNDERWRITING RISK
PERMISSIBLE RISK AND NON-PERMISSIBLE RISK
PROPERTY INSURANCE TAKAFUL COVERAGE PLAN
ISSUES ON THE PERMISSIBLE RISK IN TAKAFUL

1
2
5
6

6
8

9
3
FINDINGS
11
4
CONCLUSION

12
5
REFERENCES

13

BACKGROUND OF STUDY

Although many researches done to overcome the issues in Takaful, there are still arises the issue of permissible risks in Takaful. The famous issue regarding permissible risks in Takaful is whether the risks that will accept by Takaful operator are the same as in conventional insurance or not. There is also a question whether Takaful can cover the risks from mixed activities such as hotels, entertainment and so on. Because of lack of information and study, there is also the perception among many Muslims on whether insurance is permissible under Islam tenet with regards to the key issues of Shariah compliance and purification.
Furthermore, the concept of Takaful still could not fully understand by some Takaful operator. The question that still lies in many Muslims is “what is the difference between Takaful and insurance”. In simple words, it can be said that the concept of Takaful is still hazy to some Takaful operator.
Therefore, the purpose of this study is to help people to clarify some issues regarding Takaful especially permissible risks in Takaful. The problem that led us to do research in this topic is that all risks in Takaful are permissible according to Shariah? This review will help