Takaful
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
.
3.0 Maqasid 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
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
.
3.0 Maqasid 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