Introducing takaful in India: An exploratory study on acceptability, possibility and takaful model

Insurance has been widely used as a risk mitigation tool in our personal lives as well as in business world. It is not deniable that insurance has become part of parcel of our daily lives and it provides the benefits and protection to us when we are unfortunate. However, the concepts of riba (inter...

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Main Authors:	Htay, Sheila Nu Nu, Salman, Syed Ahmed
Format:	Conference or Workshop Item
Language:	English English
Published:	2013
Subjects:	HG1501 Banking
Online Access:	http://irep.iium.edu.my/32889/ http://irep.iium.edu.my/32889/1/ACCEPTEDAcceptability_18_October_2013.pdf http://irep.iium.edu.my/32889/2/Introducing.pdf

id	iium-32889
recordtype	eprints
spelling	iium-328892013-11-25T04:21:38Z http://irep.iium.edu.my/32889/ Introducing takaful in India: An exploratory study on acceptability, possibility and takaful model Htay, Sheila Nu Nu Salman, Syed Ahmed HG1501 Banking Insurance has been widely used as a risk mitigation tool in our personal lives as well as in business world. It is not deniable that insurance has become part of parcel of our daily lives and it provides the benefits and protection to us when we are unfortunate. However, the concepts of riba (interest), gharar (uncertainty) and mysir (gambling) inherited in insurance principles and practices are prohibited from the Islamic perspective. The Muslim scholars introduced takful to replace the conventional insurance. Tremendously, takaful is at high growing rate and penetrating into both Muslim and Non-Muslim countries. However, to the extent of our knowledge, there are no takaful operators in India even though it has the second highest population and at the same time, third highest Muslim population in the world belongs to India. Thus, the aims of this study are to examine the acceptability and possibility of offering takaful in India and to propose the most suitable takaful model that should be engaged by the takaful operators and policy holders. The findings from 216 Muslim and 117 non-Muslim respondents show that acceptability of takaful by Indians regardless of Muslims or non-Muslims is very high and there is possibility that takaful products can be marketed in India. It seems regardless of the religion, takaful seems to be accepted by Indians. Moreover, 10 Shari’ah scholars 7 takaful operators and 5 consultants opine that hybrid model, i.e. the combined concept of wakalah and mudarabah, will be the most suitable model for India. Hence, future research should examine the perception of regulators to introduce takaful and economic viability of the proposed model. 2013-11 Conference or Workshop Item PeerReviewed application/pdf en http://irep.iium.edu.my/32889/1/ACCEPTEDAcceptability_18_October_2013.pdf application/pdf en http://irep.iium.edu.my/32889/2/Introducing.pdf Htay, Sheila Nu Nu and Salman, Syed Ahmed (2013) Introducing takaful in India: An exploratory study on acceptability, possibility and takaful model. In: 1st ASEAN International Conference on Islamic Finance (1st AICIF), 6-7 Nov 2013, Damansara heights Kuala lumpur Malaysia.
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English English
topic	HG1501 Banking
spellingShingle	HG1501 Banking Htay, Sheila Nu Nu Salman, Syed Ahmed Introducing takaful in India: An exploratory study on acceptability, possibility and takaful model
description	Insurance has been widely used as a risk mitigation tool in our personal lives as well as in business world. It is not deniable that insurance has become part of parcel of our daily lives and it provides the benefits and protection to us when we are unfortunate. However, the concepts of riba (interest), gharar (uncertainty) and mysir (gambling) inherited in insurance principles and practices are prohibited from the Islamic perspective. The Muslim scholars introduced takful to replace the conventional insurance. Tremendously, takaful is at high growing rate and penetrating into both Muslim and Non-Muslim countries. However, to the extent of our knowledge, there are no takaful operators in India even though it has the second highest population and at the same time, third highest Muslim population in the world belongs to India. Thus, the aims of this study are to examine the acceptability and possibility of offering takaful in India and to propose the most suitable takaful model that should be engaged by the takaful operators and policy holders. The findings from 216 Muslim and 117 non-Muslim respondents show that acceptability of takaful by Indians regardless of Muslims or non-Muslims is very high and there is possibility that takaful products can be marketed in India. It seems regardless of the religion, takaful seems to be accepted by Indians. Moreover, 10 Shari’ah scholars 7 takaful operators and 5 consultants opine that hybrid model, i.e. the combined concept of wakalah and mudarabah, will be the most suitable model for India. Hence, future research should examine the perception of regulators to introduce takaful and economic viability of the proposed model.
format	Conference or Workshop Item
author	Htay, Sheila Nu Nu Salman, Syed Ahmed
author_facet	Htay, Sheila Nu Nu Salman, Syed Ahmed
author_sort	Htay, Sheila Nu Nu
title	Introducing takaful in India: An exploratory study on acceptability, possibility and takaful model
title_short	Introducing takaful in India: An exploratory study on acceptability, possibility and takaful model
title_full	Introducing takaful in India: An exploratory study on acceptability, possibility and takaful model
title_fullStr	Introducing takaful in India: An exploratory study on acceptability, possibility and takaful model
title_full_unstemmed	Introducing takaful in India: An exploratory study on acceptability, possibility and takaful model
title_sort	introducing takaful in india: an exploratory study on acceptability, possibility and takaful model
publishDate	2013
url	http://irep.iium.edu.my/32889/ http://irep.iium.edu.my/32889/1/ACCEPTEDAcceptability_18_October_2013.pdf http://irep.iium.edu.my/32889/2/Introducing.pdf
first_indexed	2023-09-18T20:47:30Z
last_indexed	2023-09-18T20:47:30Z
_version_	1777409772908183552

Introducing takaful in India: An exploratory study on acceptability, possibility and takaful model

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