07-22-2009, 02:39 PM
An Islamic Jurist and a person having the knowledge of both Sharia and Economics can comment that which mode of finance is Islamic and which is Haram. The knowledge of many of us is limited to the B.Com Economics. At B.Com level very basic concepts of Economics are taught but in BA/B.Sc advance economics is being taught. Due to this difference of syllabus some universities of Pakistan donât allow B.Commers to appear in M.A/M.Sc (Economics.
At M.A (Economics) a subject of Islamic Economics is being taught. In Islamic Economics we thoroughly read the structure of Islamic System, its social impact, comparison of socialism and capitalism, Islamic banking and insurance, institutions of Islamic economics system,guidelines of Islam about agriculture, industry, trade & commerce. Beside it not only dry theories of Islamic Economics are taught but arguments from Holy Quran and Hadis are also taught...
Note The above discussion is general and clearly not for any particular person.
Now I come back to my main topic. The concept of Takaful is not new. It is based on shared responsibility or mutual help. The contribution of policyholders is divided in two parts one part of contributions or premium is invested in the Halal businesses, Islamic Banks and Sakuks are priority for investment of Islamic insurance companies. Other part of premium is considered as Donation or Sadqa this amount is given to those persons who suffer losses. Thus both the benefits of protection as well as saving/investment are available in insurance. The Takaful contract is clearly mentions that to which extent the premium amount will be considered as donation or sadqa and how much amount will be used for investment.. Another big difference between conventional and Islamic insurance is that conventional insurance companies usually invest the amounts of premiums in interest based business like in conventional banks and in interest based securities
Here the importance of contract and its terms and conditions are apparent. Nikah (Marriage) is also a contract between one man and women.. Nikah allows man and women to establish Halal sexual relations with each other. If a man and women establish sexual relations without Nikah then it will be ZANA. In both Nikah and Zana the sexual relations between man and women are apparent but the differentiating thing is that Nikah is a contract in which offer and acceptance are made in the presence of witnesses. In many Hadis Hazrat Muhammad(SAW) has ordered Muslims to announce the nikah at large level. This example I quote only to differentiating that how a Haram thing can become Halal and appreciable in Islam. Some minor change can make a thing or act Halal or Haram. Another example is that if you slaughter a cow without saying TAKBIR than its meat will be Haram but only a minor thing that is reciting of Takbeer will make the meat of cow Halal.
The Islamic insurance has both the benefits of protection as well as saving/investment for the policyholders there is no factor of chance is involved in Islamic Insurance. Beside it policyholders also enjoy extra income. But in conventional insurance policy holder donât take any benefit a person who suffers loss enjoys premiums of all other policyholders.
Regards,
Awais Aftab
At M.A (Economics) a subject of Islamic Economics is being taught. In Islamic Economics we thoroughly read the structure of Islamic System, its social impact, comparison of socialism and capitalism, Islamic banking and insurance, institutions of Islamic economics system,guidelines of Islam about agriculture, industry, trade & commerce. Beside it not only dry theories of Islamic Economics are taught but arguments from Holy Quran and Hadis are also taught...
Note The above discussion is general and clearly not for any particular person.
Now I come back to my main topic. The concept of Takaful is not new. It is based on shared responsibility or mutual help. The contribution of policyholders is divided in two parts one part of contributions or premium is invested in the Halal businesses, Islamic Banks and Sakuks are priority for investment of Islamic insurance companies. Other part of premium is considered as Donation or Sadqa this amount is given to those persons who suffer losses. Thus both the benefits of protection as well as saving/investment are available in insurance. The Takaful contract is clearly mentions that to which extent the premium amount will be considered as donation or sadqa and how much amount will be used for investment.. Another big difference between conventional and Islamic insurance is that conventional insurance companies usually invest the amounts of premiums in interest based business like in conventional banks and in interest based securities
Here the importance of contract and its terms and conditions are apparent. Nikah (Marriage) is also a contract between one man and women.. Nikah allows man and women to establish Halal sexual relations with each other. If a man and women establish sexual relations without Nikah then it will be ZANA. In both Nikah and Zana the sexual relations between man and women are apparent but the differentiating thing is that Nikah is a contract in which offer and acceptance are made in the presence of witnesses. In many Hadis Hazrat Muhammad(SAW) has ordered Muslims to announce the nikah at large level. This example I quote only to differentiating that how a Haram thing can become Halal and appreciable in Islam. Some minor change can make a thing or act Halal or Haram. Another example is that if you slaughter a cow without saying TAKBIR than its meat will be Haram but only a minor thing that is reciting of Takbeer will make the meat of cow Halal.
The Islamic insurance has both the benefits of protection as well as saving/investment for the policyholders there is no factor of chance is involved in Islamic Insurance. Beside it policyholders also enjoy extra income. But in conventional insurance policy holder donât take any benefit a person who suffers loss enjoys premiums of all other policyholders.
Regards,
Awais Aftab
