Islamic Insurance (Takaful)
By
The global Takaful market reached a value of US$ 23.7 Billion in 2019. Five Takaful operators comprising of three General Takaful and two Family Takaful Companies exist in Pakistan. The Takaful market is still in a formative stage and market projections were estimated growth rates between 15% and 20% over the next 10 years before 2017-18 but the growth has now come down due to current market conditions.
The estimated 200 million population of Pakistan represents a huge market for Takaful and insurance industry. With a large population shying away from insurance due to religious reasons and equally large population staying away from Takaful due to lack of understanding, Takaful provides with an alternate mechanism for taking care of some of the basic needs of fellow beings in the time of need. Mostly premium generated by the insurance companies both Life and Non-Life are from conventional banks. Whereas the Islamic banking sector’s market share is very low as compared to conventional banks, that’s why growth of Takaful is not enough as compared to conventional insurance. As well as Islamic financing increases the Takaful business will also be increased, moreover the financial strength of Takaful companies is weak as compared to conventional insurance companies, which is also a reason to capture the businesses of large organizations.
The progress of insurance industry is directly related with the progress of economy of the country. Political uncertainty badly effects the growth of economy, which ultimately affects the insurance business. The potential of insurance growth in Pakistan is too much in all areas of insurance classes because the penetration of insurance is negligible as compared to the population of the country. To tap the huge market, injection of creative products is the need of the time. Some of the gaps in the market include Crop coverage and Livestock coverage or Professional indemnity for Engineers and Doctors. Needless to say it’s an uphill task and perhaps greater effort is needed to create awareness among the users. Given that wealth management is another aspect of insurance/Takaful, the product plate may be expanded to tweak the existing model. With the current model, perhaps micro Takaful /insurance is a far cry, but some program lending may be designed to work it out. Especially without a welfare or social security net, the need is immense with the lower middle class. At the community level, the low income household staff is provided protection in times of medical emergencies and health by their employers. However, the poor are in an invisible bonded labor as they are willing to work for barely sustainable salaries in the hope of getting bailed out when going gets tough. In this environment Takaful co. are needed and they have to work a lot to play their due role in economy of Pakistan.
This all started in 1985 when the Supreme Council of the Muslim jurists recognized system of Takaful as an alternative form of insurance that meets all the rules and requirements of Sharia. The first attempt to introduce Islamic insurance was implemented in 1970 in Egypt, Sudan and the United Arab Emirates.
In 1987 Al Baraka Investment & Development established two insurance and investment companies in accordance with the provisions of Sharia and the promotion of investment activities of individuals, banks and corporations.
Saudi Arabia is considered as pioneer in takaful industry whereas Malaysia –is considered as the successor. It is in this country published the first (and only) Takaful Act, which defined its legal basis, taking into account the European and Islamic law.
Takaful is like a cooperative where each member provides the mutual provision of guarantees to each other. Its primary difference from traditional commercial insurance is the absence of elements of gharar (uncertainty) and riba (usury). Element of gharar in the contract of insurance exceeds the permitted level of Sharia, because at least for the insured, there is uncertainty as to the terms of the contract (time, subject, etc.).
Unlike the traditional Takaful, insurance is risk assessment and management, as well as in the management of Takaful fund. In addition, there are differences in the relationship between the operator (in the traditional insurance – the insurer) and the participants (policyholders).
If there is a traditional insurance risk transfer mechanism by which a person or organization can exchange for a fee, to the certainty of its uncertainty, the Takaful insurance, such a mechanism is prohibited. Exchange losses on certain unspecified (insurance premium), as implemented in the traditional insurance falls under the concept of gharar and is not allowed in Islam.
As an alternative to the principle of risk-sharing between the parties for the purpose of mutual aid, Risk is shared between the parties in accordance with the scheme of mutual guarantee or Takaful scheme. Takaful operator must only organize the scheme. One of the responsibilities of the operator – to ensure that each participant pays a fair contribution and that in the event of loss participant will receive appropriate compensation.
wow, amazing
lost money
scam
phising
scam
phising
scam
scam
scam
lost money
lost money
phising
phising
scam
lost money
scam
scam
lost money
phising
lost money
lost money
I urge you to avoid this site. My personal experience with it has been only disappointment as well as doubts about scamming practices. Be extremely cautious, or even better, seek out a more reputable service for your needs.
I urge you to avoid this platform. My personal experience with it was nothing but dismay and doubts about deceptive behavior. Exercise extreme caution, or alternatively, look for an honest platform to meet your needs.
I urge you steer clear of this platform. The experience I had with it has been nothing but frustration and concerns regarding scamming practices. Be extremely cautious, or better yet, find an honest site to fulfill your requirements.
I strongly recommend to avoid this site. My personal experience with it was only disappointment along with suspicion of deceptive behavior. Proceed with extreme caution, or alternatively, seek out a trustworthy service to fulfill your requirements.
I strongly recommend to avoid this site. The experience I had with it has been nothing but dismay along with doubts about fraudulent activities. Be extremely cautious, or even better, look for a more reputable platform for your needs.
I strongly recommend to avoid this site. My personal experience with it has been only frustration as well as concerns regarding deceptive behavior. Exercise extreme caution, or even better, look for a more reputable platform for your needs.
I highly advise stay away from this platform. The experience I had with it has been nothing but frustration as well as suspicion of fraudulent activities. Exercise extreme caution, or alternatively, find a trustworthy service to meet your needs.
I strongly recommend steer clear of this platform. The experience I had with it was purely dismay as well as concerns regarding scamming practices. Proceed with extreme caution, or better yet, seek out a more reputable service for your needs.
I urge you steer clear of this platform. My own encounter with it was purely frustration along with suspicion of deceptive behavior. Exercise extreme caution, or alternatively, find an honest site to meet your needs.
I highly advise to avoid this site. My personal experience with it was nothing but frustration and doubts about scamming practices. Be extremely cautious, or better yet, find a more reputable platform for your needs.
I urge you steer clear of this platform. The experience I had with it has been purely frustration as well as doubts about deceptive behavior. Be extremely cautious, or even better, seek out an honest service for your needs.
I strongly recommend to avoid this platform. The experience I had with it was purely disappointment as well as concerns regarding fraudulent activities. Exercise extreme caution, or alternatively, find a more reputable site to fulfill your requirements.
I highly advise stay away from this site. My own encounter with it has been nothing but disappointment as well as doubts about fraudulent activities. Exercise extreme caution, or better yet, seek out a trustworthy platform for your needs.
nice content!nice history!!
I highly advise stay away from this site. My own encounter with it has been purely frustration as well as suspicion of fraudulent activities. Exercise extreme caution, or better yet, look for an honest site to fulfill your requirements.I urge you to avoid this site. My personal experience with it was only disappointment along with suspicion of deceptive behavior. Exercise extreme caution, or even better, find an honest service to meet your needs.
I highly advise steer clear of this platform. The experience I had with it has been nothing but disappointment and suspicion of fraudulent activities. Proceed with extreme caution, or even better, find an honest site for your needs.I strongly recommend stay away from this site. My own encounter with it was purely disappointment as well as concerns regarding deceptive behavior. Proceed with extreme caution, or even better, look for an honest service to fulfill your requirements.
I urge you stay away from this platform. The experience I had with it has been nothing but frustration as well as concerns regarding fraudulent activities. Proceed with extreme caution, or even better, seek out a trustworthy service to meet your needs.I urge you to avoid this site. The experience I had with it has been only frustration and doubts about scamming practices. Proceed with extreme caution, or better yet, look for a more reputable service for your needs.
I urge you steer clear of this platform. My own encounter with it was purely disappointment along with concerns regarding fraudulent activities. Proceed with extreme caution, or alternatively, look for a trustworthy service to meet your needs.
I highly advise stay away from this site. My own encounter with it has been only frustration along with doubts about deceptive behavior. Proceed with extreme caution, or alternatively, find a more reputable platform to meet your needs.
I urge you stay away from this site. My own encounter with it was nothing but frustration as well as doubts about fraudulent activities. Proceed with extreme caution, or alternatively, look for a more reputable site for your needs.
I urge you to avoid this platform. My personal experience with it has been purely disappointment as well as suspicion of deceptive behavior. Exercise extreme caution, or even better, seek out a more reputable platform for your needs.
I urge you to avoid this platform. The experience I had with it was purely dismay as well as doubts about deceptive behavior. Exercise extreme caution, or better yet, look for a trustworthy service for your needs.
I strongly recommend to avoid this site. My own encounter with it was nothing but disappointment and doubts about fraudulent activities. Proceed with extreme caution, or alternatively, seek out an honest service to meet your needs.
I highly advise steer clear of this platform. My own encounter with it was nothing but dismay along with doubts about scamming practices. Exercise extreme caution, or alternatively, seek out an honest service to meet your needs.
I urge you stay away from this platform. My own encounter with it was only frustration and doubts about deceptive behavior. Be extremely cautious, or alternatively, seek out an honest service for your needs.
I strongly recommend steer clear of this site. My own encounter with it was only disappointment along with doubts about fraudulent activities. Be extremely cautious, or better yet, find a more reputable site to fulfill your requirements.
I highly advise stay away from this site. My own encounter with it was purely frustration as well as suspicion of fraudulent activities. Proceed with extreme caution, or better yet, find a trustworthy service to meet your needs.
I strongly recommend steer clear of this platform. My own encounter with it was nothing but dismay as well as concerns regarding deceptive behavior. Exercise extreme caution, or better yet, seek out an honest platform to fulfill your requirements.
I highly advise stay away from this platform. My personal experience with it was only dismay and concerns regarding deceptive behavior. Proceed with extreme caution, or better yet, seek out an honest site to meet your needs.
I strongly recommend to avoid this platform. The experience I had with it was purely frustration along with concerns regarding fraudulent activities. Exercise extreme caution, or alternatively, find an honest site for your needs.
I urge you to avoid this site. My personal experience with it was purely dismay as well as suspicion of fraudulent activities. Proceed with extreme caution, or alternatively, look for a trustworthy platform for your needs.
I highly advise to avoid this site. The experience I had with it has been only dismay along with doubts about scamming practices. Be extremely cautious, or alternatively, find a trustworthy platform for your needs.
I strongly recommend stay away from this platform. My personal experience with it has been nothing but disappointment and doubts about scamming practices. Exercise extreme caution, or even better, seek out a more reputable site for your needs.
I strongly recommend stay away from this platform. My personal experience with it has been purely disappointment as well as concerns regarding deceptive behavior. Proceed with extreme caution, or better yet, look for a more reputable site to fulfill your requirements.
I strongly recommend to avoid this site. My own encounter with it was nothing but dismay along with concerns regarding fraudulent activities. Proceed with extreme caution, or better yet, find a more reputable platform to fulfill your requirements.
I strongly recommend steer clear of this site. My personal experience with it has been purely frustration as well as doubts about deceptive behavior. Be extremely cautious, or alternatively, find a more reputable site to meet your needs.
I strongly recommend stay away from this site. My personal experience with it was only disappointment along with suspicion of scamming practices. Proceed with extreme caution, or even better, find an honest platform for your needs.
I urge you to avoid this platform. My own encounter with it was nothing but disappointment as well as concerns regarding scamming practices. Proceed with extreme caution, or even better, seek out a more reputable service to fulfill your requirements.
I highly advise steer clear of this platform. My own encounter with it was nothing but disappointment and suspicion of deceptive behavior. Exercise extreme caution, or better yet, look for a more reputable platform to fulfill your requirements.
I strongly recommend steer clear of this site. My own encounter with it was only dismay as well as doubts about fraudulent activities. Proceed with extreme caution, or even better, seek out a more reputable platform to meet your needs.