Article: Sahulat Journal 6, Vol.5 December 2016 and June 2017, No. 1
As a practitioner of takaful, I have actively pursued its developments since 1985. The ethical aspects of Islamic Finance were a strong motivator for me to study the underlying takaful concepts, and how these concepts were the preferred choices over conventional insurance. I tracked the phenomenal success of Islamic finance in the Middle East and the Far East in the eighties and nineties and have been participating in research, promotion and practice of takaful ever since.
An older version of this paper was first published in October 2013. This is a revised version with few additional areas to consider including the need for External Shariah Auditing and takaful as a disruptor in the age of the Internet of Things (IoT).
The ethical aspects of takaful, stem from co-operative principles that emanate from “co-operation”, the latter being the binding force of nature. Just as cells work together to produce valuable nutrients of life, so do humans work together like cells, in the body of humanity. Co-operation brings strength to society and community, showing us a way to go through life against its rigors, both natural and manmade.
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