By: Waheed Akhter
Journal of Islamic Banking & Finance July-Sept 2009
Abstract
Insurance plays an important role in the overall development of the economy by mobilizing long-term funds and serving as a major institutional investor for the capital and money market instruments. Yet the concept of insurance has been misunderstood and misinterpreted by Islamic scholars as well as the Muslim community. Conventional insurance has been widely criticized by Islamic jurists and Ulama due to its detrimental elements such as al-gharār, al-maisir and al-ribā that have been considered repugnant to Sharī’ah. This research paper attempts to analyze the development of Takāful from historical perspective while explicating its evolution in Pakistan. It adopts a systematic approach to analyze the development of Takāful from historical perspective. Starting from emergence of Takāful concept from ancient Arab tribes through its progress in the 20th and 21st centuries, it attempts to elucidate that development of Takāful has been quite impressive in Malaysia and other Muslim countries. Yet in Pakistan, its progress got entangled in the elements of bureaucracy and corruption. It urges the Government and academicians to play their role for further development of Takāful in the country.
Comments are closed.