Abd Hamid, Ahmad Ihsan

Kayadibi, Saim

M. Azli, M. Habibullah

The International Islamic University Malaysia Repository

Islamic Banking and Finance Against ConventionalChapter 14Conventional Insurance: Is It Shariah Compliance?M. Habibullah b. M. Azli, Ahmad Ihsan b. Abd Hamid91and Saim Kayadibi206IntroductionThe world is moving forward as what everyone can seenowadays and this result in increasing number of peopleconcern about their safety in the future. This may include thingsthat are related to their wealth, healthcare, family matters andother more. Living in this competitive world, peoples are awareof any kind of unexpected circumstances that might occur intheir daily life. Because of this, they take insurance as their backup plan in order to secure their property, healthcare and familymembers. The idea for taking insurance is because people wantto transfer their risk to others. Insurance allows people totransfer their financial risk to an insurance company. Theinsurance companies prepare for this risk because they chargepremiums to their customers and keep a large amount of moneyin reserve. When a customer files a claim, the insurancecompany has the money there to pay them. This allowseveryone to focus on other things instead of worrying aboutpossible losses.There are two categories of insurance, one is known as takafulwhich goes under Islamic insurance system and another one isconventional insurance system. People mostly are prefer to takeconventional insurance and know little about takaful. However,many scholars argue on the conventional insurance instrument91 Graduate Students, Faculty of Economics and Management Sciences,International Islamic University Malaysia (HUM), Kuala Lumpur, Malaysia.

Conventional insurance : is it Shariah compliance?

http://irep.iium.edu.my/20520/1/Conventional_Insurance_-_Is_It_Shariah_Compliance.pdf

Conventional insurance : is it Shariah compliance?

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The International Islamic University Malaysia Repository