DOI: https://doi.org/10.14710/dilrev.6.1.2021.1-16

SHARIAH COMPLIANCE ON RETAKAFUL IN MALAYSIA

Nurwajihah Ajlaa Ali  -  Faculty of Law, Universiti Kebangsaan Malaysia, Malaysia
*Ruzian Markom scopus  -  Faculty of Law, Universiti Kebangsaan Malaysia, Malaysia
Open Access Copyright (c) 2021 Diponegoro Law Review under http://creativecommons.org/licenses/by-nc-sa/4.0.

Citation Format:
Abstract
Retakaful is an Islamic alternative to the reinsurance industry in ensuring the stability of takaful companies. In Malaysia, the takaful operators need to depend on retakaful operators to ensure the takaful industry's long-term continuity by sharing the risk with the retakaful operators due to the small numbers of takaful operators. As a result, they reinsure their Takaful with the conventional reinsurance companies to meet the market demand. This practice continues to be acceptable based on an argument of unavoidable circumstances such as a necessity (darurah) and a dire need (hajah) due to insufficient retakaful companies. The Shari'ah issues arose on the needs for retakaful operators with conventional reinsurers or operators. Therefore, the paper aims to analyze the role of retakaful and its potential within the industry by identifying. Then it explores the Shari'ah principle and the arguments, existing rules, and regulations on the said issues. This study utilized the doctrinal research method with the content analysis. The data is collected from the library consisting of primary and secondary sources. The study's findings revealed that the Shariah scholars resolution plays essential roles in enhancing the roles of the retakaful industry based on darurah and hajah.
Fulltext View|Download
Keywords: Takaful; Retakaful; Reinsurance; Shari'ah; Regulatory; Risk-Sharing

Article Metrics:

Article Info
Section: Articles
Language : EN
Recent articles
DOUBLE TRACK CRIMINAL SYSTEM OF INDONESIA: CRIMINAL SANCTION AND CHEMICAL CASTRATION TREATMENT POLICY ON PEDHOFILIA? A MODEL OF ISLAMIC PUBLIC FINANCE IN MALAYSIA’S CONSTITUTION THE LEGALITY OF EX-ISIS CITIZENSHIP FROM INDONESIA IN IRAQ AND SYRIA More recent articles
Most cited articles
MANAGEMENT, DISTRIBUTION, AND REDEMPTION OF VILLAGE FUND THE FUNCTION OF IDEAL LAW IN PREPARATION REGULATION LEGISLATION IN ORDER TO CREATING EQUITABLE REGIONAL DEVELOPMENT REGULATIONS FOR E-COMMERCE AGREEMENT ACCORDING TO ICT ACT AND TITLE III OF INDONESIAN CIVIL CODE RISK MANAGEMENT IN THE PROVISION OF PEOPLE’S BUSINESS CREDIT AS IMPLEMENTATION OF PRUDENTIAL PRINCIPLES SHARIA GOVERNANCE ON ISLAMIC BANKING: SPIRITUAL RIGHTS PERSPECTIVE ON CONSUMER PROTECTION IN INDONESIA More cited articles
  1. Abubakar, YS, MA Zahid, and R Markom. “Effect of Nomination Under Life Insurance and Family Takaful.” ISRA International Journal of Islamic Finance 195, no. 2632 (2014): 1–23
  2. Ahmad, Abu Umar Faruq, Ismail Bin Mahbob, and Muhammad Ayub. “The Nature of Retakaful: Risk-Sharing or Transferring Risks?” In Takaful and Islamic Cooperative Finance, edited by S. Nazim Ali and Shariq Nisar, 171–91. Cheltenam: Edward Elgar Publishing, 2016
  3. Akoob, Mahomed. “Reinsurance and Retakaful.” In Takaful Islamic Insurance: Concepts and Regulatory Issues, edited by Simon Archer, Rifaat Ahmed Abdul Karim, and Volker Nienhaus, 143–55. John Wiley & Sons (Asia) Pte. Ltd, 2009
  4. Arbouna, Mohammed Burhan. “The Operation of Retakaful (Islamic Reinsurance) Protection.” Arab Law Quarterly 15, no. 4 (2000): 335–62
  5. Bank Negara Malaysia. Kompilasi Keputusan Syariah Dalam Kewangan Islam. 3rd ed., 2007
  6. ———. Resolusi Syariah Dalam Kewangan Islam, 2010
  7. ———. Resolution No 47, Shariah Resolution in Islamic Finance. 2nd ed., 2010
  8. ———. Shariah Resolutions in Islamic Finance. 2nd ed., 2010
  9. Daud, Wan Norhayate Wan, Fakhrul Anwar Zainol, Fauzilah Salleh, Ahmad Shukri Yazid, Suraya Ismail, Ruzian Markom, and Miss Nurdalila Mukhtar. “Takaful Rules and Regulations for ASEAN Countries: Takaful Player Perspectives.” In Proceedings of the 30th International Business Information Management Association Conference, IBIMA, 2017
  10. Gunardi, Setiyawan, Nurdeng Deuraseh, Hailani Muji Tahir, and Sanep Ahmad. “Retakaful From Syariah Perspective: A Comparative Study.” Chinese Business Review 12, no. 9 (2013): 616–24
  11. Hasan, Aznan. “Shari’ah Issues in The Operation of Retakaful and Reinsurance: A Preliminary Exploration from Shari’ah Perspective.” IIUM Law Journal 19, no. 2 (2011): 150–78
  12. Heradhyaksa, Bagas, and Ruzian Markom. “Jurisdiction of Sharia Supervisory Board in Indonesian Takaful Industry.” In IOP Conf. Ser.: Earth Environ. Sci. 175 012177, 1–7, 2018
  13. INCIEF. Takaful Realities & Challenges. Petaling Jaya: Pearson Malaysia, 2012
  14. ISRA. Selected Resolutions of the Shariah Committee of Prudential BSN Takaful Berhad. Petaling Jaya: ISRA, 2020
  15. Jamil, S. N., and J. Jamal. “Importance of Islamic Financial Services Act 2013 in Takaful Industry After the Repealed Takaful Act 1984.” Diponegoro Law Review 1, no. 1 (2016): 17–27
  16. Karekezi, Corneille. “The Critical Role of Retakaful in Africa.” Middle East Insurance Review, 2020. https://www.africa-re.com/uploads/content/download_translation/download/5fe31089-e74d-4c6d-9663-2ce144247384.pdf
  17. Muhamat, Amirul Afif, Mohamad Nizam Jaafar, and Mohd Shamsuri MD Saad. Essential Components of Takaful Operation. UTEM Press, 2019
  18. Nasaruddin, Syarifah Nur Amalina Syed. “Cabaran Dan Peluang Retakaful Di Malaysia.” In Proceeding of the 2nd International Conference on Economic & Banking, 57–63, 2016
  19. Nasri, Mohd Sabree. “Takaful Semula Dalam Industri Insurans: Tinjauan Khusus Menurut Perspektif Islam Dan Undang-Undang.” Journal of Law & Governance 1, no. 1 (2018): 49–61
  20. NuHtay, Sheila Nu, Mustapha Hamat, Wan Zamri Wan Ismail, and Syed Ahmed Salman. “Retakaful (Islamic Reinsurance): Historical, Shari’ah and Operational Perspectives.” World Applied Sciences Journal 30 (Innovation Challenges in Multidiciplinary Research & Practice), 2014, 185–90
  21. Rahman, Asmak Ab, Wan Marhaini Wan Ahmad, and Ahmad Hidayat Buang. “Can a Takaful Company Reinsure with a Reinsurance Company?” African Journal of Business Management 5, no. 30 (2011): 11768–78
  22. Samsuri, M. A. Z. Ahmad, and J. Jamal. “Takaful Agent Must Foster Public Understanding of Takaful.” Diponegoro Law Review 2, no. 2 (2017): 245–58
  23. Sum, Cheah You, Hasani Mohd Ali, and Ruzian Markom. “Legal Issues Concerning Insurable Interest and Permissible Takaful Interest at the Time of Death under Conventional and Family Takaful Contract.” International Journal of Business and Society 19, no. 3 (2018): 353–67
  24. Yusuf, Mohamed, and Rosmi Yuhasni. “Revisiting and Redefining the Concept of Retakaful and the Viability of Its Model in Malaysian Takaful Industry.” Business and Management Quarterly Review (BMQR) 2, no. 4 (2011): 20–32

Last update:

No citation recorded.

Last update: 2024-11-22 01:53:44

No citation recorded.