Implementing Takaful in India: Prospects, Challenges, and Solutions

ISBN-13: 9789811662836 / Angielski / Miękka / 2022

Syed Ahmed Salman

Opis

This book encourages insurance companies and regulators to explore offering Islamic insurance to boost the insurance industry in India. The distinctive features of Takaful also make it appealing even to non-Muslims. According to the 2012 World Takaful Report, India has immense potential for Takaful is based on the size of its Muslim population and the growth of its economy. However, it is surprising that Takaful has yet to be introduced in India since it has been offered in non-majority Muslim countries, such as Singapore, Thailand, and Sri Lanka. When the concept and practice of Takaful are examined, it is free from interest, uncertainty, and gambling. These are the main elements prohibited in Islam. However, it has been evidenced that these elements are also banned in teaching other religions believed by the Indians. Given this landscape, this book fills the gap in research on the viability of Takaful in India, focusing on its empirical aspects by examining the perception of Indian insurance operators toward Takaful.

Spis treści

Chapter One: Introduction of Takaful in India

Introduction

Appraisal of Indian Insurance Market

Research Objectives 

Motivation and Significance of The Study

Structure of The Book

Chapter Two: Risk, Risk Management and Insurance: Conventional and Islamic Dimensions

Introduction

Definition and Classification of Risk

Common Types of Risks Faced by Individuals and Their Risk Management

Common Types of Risks Faced by Business Entities and Their Risk Management

Risk in Islam

Islamic Dimension of Risk Management

Dimension of Insurance

Prohibited Elements of Conventional Insurance in the Sources of Shari’ah

Prohibition of Riba (Interest)

Prohibition of Riba (Interest) in the Qur’an and Hadith

The reasoning for the Prohibition of Riba (Interest)

Prohibition of Gharar (Uncertainty)

Prohibition of Gharar (Uncertainty) in the Qur’ān and Ḥadīth

The reasoning for the Prohibition of Gharar (Uncertainty)

Prohibition of Maysir (Gambling)

The reasoning for the Prohibition of Maysir (Gambling)

Prohibited Elements in Conventional Insurance

Prohibition of Conventional Insurance in Fatawa

Conclusion

Chapter Three: Takaful: Concept, Principles, Types, And Models

Introduction

Overview of Takaful

Concept of Takaful

Definitions of Takaful

Sharīʿah Framework of Takaful

Takaful in the Qur’ān

Takaful in Ḥadīth

Takaful: Shari’ah Scholar Point of View

Fundamental Differences between Takaful and Insurance

Development of Takaful

Main Types of Takaful

General Takaful

Family Takaful

Takaful Models

General Takaful Models

Comparison of General Takaful Models

Family Takaful Models

Comparison of Family Takaful Models

Conclusion

Chapter Four: Research Methodology

Introduction

Theoretical Framework 

New Product Adoption Theory

New Product Diffusion Theory

Research Methodology

Data and Research Methods

Samples, Sampling Method, and Data Collection Method

Questionnaire Development

Interview Technique

Statistical Method

Conclusion

Chapter Five: Findings from Interviews with Insurance Operators

Introduction

Profile of Interviewees

Awareness and Knowledge of Conventional Insurance

Knowledge of Takaful 

Interviewee’s Opinion on Determinants to Offer Takaful 

Interviewee’s Opinion on Future Takaful 

Interviewees’ Opinions on the Level of Difficulty to Promote Takaful in India 

Strengths of Introducing Takaful in India

Weaknesses of Introducing Takaful in India 

Overcoming Weaknesses to Offer Takaful in India

Opportunities to Introduce Takaful in India

Threats to Introduce Takaful in India

Overcoming Threats Related to Offering Takaful in India

Chapter Six: Conclusion and Suggestions

Conclusion

Contribution of The Research

Suggestions for Future Research

Recommendations

O autorze

Syed Ahmed Salman is Senior Lecturer (Assistant Professor) at Faculty of Business and Accountancy, Lincoln University College, Malaysia. He holds a Ph.D. in Islamic Banking and Finance from the Institute of Islamic Banking and Finance, International Islamic University Malaysia, and is a researcher of Islamic finance, with a particular focus on Takaful.