Shariah compliance assessment of construction takaful claims for loss and damage

Incessant and ascendant increases in the interest to adopt Shariah concepts in commercial transactions has encouraged business entities including contractors to employ Shariah compliance products. Currently, contractors are inclined to employ Contractor’s All Risks (CAR) Takaful to insure their work...

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Main Authors:	Mohd Fauzi, Puteri Nur Farah Naadiah, Abdul Rashid, Khairuddin
Format:	Conference or Workshop Item
Language:	English English English English
Published:	2015
Subjects:	BP173.77 Islam and work HG8011 Insurance TH Building construction TH9025 Protection of buildings. Including protection from dampness, fire, burglary
Online Access:	http://irep.iium.edu.my/49442/ http://irep.iium.edu.my/49442/1/Paper.pdf http://irep.iium.edu.my/49442/2/Cert_presenter.pdf http://irep.iium.edu.my/49442/3/2._Table_of_Content.pdf http://irep.iium.edu.my/49442/10/SP2_%282%29.pdf

id	iium-49442
recordtype	eprints
spelling	iium-494422018-06-21T04:39:36Z http://irep.iium.edu.my/49442/ Shariah compliance assessment of construction takaful claims for loss and damage Mohd Fauzi, Puteri Nur Farah Naadiah Abdul Rashid, Khairuddin BP173.77 Islam and work HG8011 Insurance TH Building construction TH9025 Protection of buildings. Including protection from dampness, fire, burglary Incessant and ascendant increases in the interest to adopt Shariah concepts in commercial transactions has encouraged business entities including contractors to employ Shariah compliance products. Currently, contractors are inclined to employ Contractor’s All Risks (CAR) Takaful to insure their works during construction. Upon any occurrence of specified risks to the construction works, contractors may submit claims and the monies received therefrom would be utilized to recover the damaged works. However, past studies claimed that the practice in assessing claims in takaful has deficiency in terms of its legitimacy from the Shariah perspectives. The current practice in assessing claims for construction works loss and damage lack of transparency and accountability with absence of standard guideline. Consequently, a study was conducted with the key objective to identify legitimacy from the Shariah perspectives in assessing claims for construction works loss and damage. The methodology used for the study combined three (3) key data sources, which are (i) review on primary religious documents i.e. Quran and hadith and practice of the assessments of construction takaful claims in Malaysia; and (ii) semi-structured interview with eight (8) experts in the fields of takaful and insurance, construction industry, and Shariah knowledge areas. The outcome of the study suggests that (i) there are various methods used by the experts in assessing claims for construction works loss and damage, and (ii) the current practice in assessing takaful claims for construction works loss and damage do not adhere fully to the requirement of the Shariah. This paper is expected to produce a summary of the legitimacy from the Shariah perspectives in making assessment for construction works loss and damage. Further research is recommended in order to develop a Shariah compliance standard procedures for the assessment of takaful claims for construction works loss and damage. 2015-11-12 Conference or Workshop Item NonPeerReviewed application/pdf en http://irep.iium.edu.my/49442/1/Paper.pdf application/pdf en http://irep.iium.edu.my/49442/2/Cert_presenter.pdf application/pdf en http://irep.iium.edu.my/49442/3/2._Table_of_Content.pdf application/pdf en http://irep.iium.edu.my/49442/10/SP2_%282%29.pdf Mohd Fauzi, Puteri Nur Farah Naadiah and Abdul Rashid, Khairuddin (2015) Shariah compliance assessment of construction takaful claims for loss and damage. In: 14th Management in Construction Research Association (MiCRA 2015) Conference and Annual General Meeting, 12th-13th Nov. 2015, Kulliyyah of Architecture and Environmental Design (KAED) International Islamic University Malaysia (IIUM). (Unpublished)
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English English English English
topic	BP173.77 Islam and work HG8011 Insurance TH Building construction TH9025 Protection of buildings. Including protection from dampness, fire, burglary
spellingShingle	BP173.77 Islam and work HG8011 Insurance TH Building construction TH9025 Protection of buildings. Including protection from dampness, fire, burglary Mohd Fauzi, Puteri Nur Farah Naadiah Abdul Rashid, Khairuddin Shariah compliance assessment of construction takaful claims for loss and damage
description	Incessant and ascendant increases in the interest to adopt Shariah concepts in commercial transactions has encouraged business entities including contractors to employ Shariah compliance products. Currently, contractors are inclined to employ Contractor’s All Risks (CAR) Takaful to insure their works during construction. Upon any occurrence of specified risks to the construction works, contractors may submit claims and the monies received therefrom would be utilized to recover the damaged works. However, past studies claimed that the practice in assessing claims in takaful has deficiency in terms of its legitimacy from the Shariah perspectives. The current practice in assessing claims for construction works loss and damage lack of transparency and accountability with absence of standard guideline. Consequently, a study was conducted with the key objective to identify legitimacy from the Shariah perspectives in assessing claims for construction works loss and damage. The methodology used for the study combined three (3) key data sources, which are (i) review on primary religious documents i.e. Quran and hadith and practice of the assessments of construction takaful claims in Malaysia; and (ii) semi-structured interview with eight (8) experts in the fields of takaful and insurance, construction industry, and Shariah knowledge areas. The outcome of the study suggests that (i) there are various methods used by the experts in assessing claims for construction works loss and damage, and (ii) the current practice in assessing takaful claims for construction works loss and damage do not adhere fully to the requirement of the Shariah. This paper is expected to produce a summary of the legitimacy from the Shariah perspectives in making assessment for construction works loss and damage. Further research is recommended in order to develop a Shariah compliance standard procedures for the assessment of takaful claims for construction works loss and damage.
format	Conference or Workshop Item
author	Mohd Fauzi, Puteri Nur Farah Naadiah Abdul Rashid, Khairuddin
author_facet	Mohd Fauzi, Puteri Nur Farah Naadiah Abdul Rashid, Khairuddin
author_sort	Mohd Fauzi, Puteri Nur Farah Naadiah
title	Shariah compliance assessment of construction takaful claims for loss and damage
title_short	Shariah compliance assessment of construction takaful claims for loss and damage
title_full	Shariah compliance assessment of construction takaful claims for loss and damage
title_fullStr	Shariah compliance assessment of construction takaful claims for loss and damage
title_full_unstemmed	Shariah compliance assessment of construction takaful claims for loss and damage
title_sort	shariah compliance assessment of construction takaful claims for loss and damage
publishDate	2015
url	http://irep.iium.edu.my/49442/ http://irep.iium.edu.my/49442/1/Paper.pdf http://irep.iium.edu.my/49442/2/Cert_presenter.pdf http://irep.iium.edu.my/49442/3/2._Table_of_Content.pdf http://irep.iium.edu.my/49442/10/SP2_%282%29.pdf
first_indexed	2023-09-18T21:09:55Z
last_indexed	2023-09-18T21:09:55Z
_version_	1777411183329935360

Shariah compliance assessment of construction takaful claims for loss and damage

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