Takaful is an Arabic term meaning solidarity, which is used to describe a system of Islamic insurance that functions as an alternative to conventional insurance. Takaful, as a form of insurance, is entering a fast growing global market, promoted by the growth of the Asian economies and economic prosperity in the Middle East. The Takaful system is based on the principle of cooperation or mutual assistance, and is Tabarru (Voluntary), meaning that the attendant risks are spread collectively across the group of volunteers. The Takaful system is best understood as a pact (or policy) ascribed to by a group of participants who choose to jointly guarantee themselves against loss or damage suffered by individual signatories, as confirmed in the policy. The prediction is that Takaful will be the default choice for citizens in Islamic countries in the near future. The combination of the system’s financial efficacy, combined with principles underwritten by religious correctness has accentuated the attractiveness of this, and similar, Islamic banking and financial products to Muslims. By examining the Saudi insurance sector, which is a market leader in the region, this thesis delivers a brief history of insurance in general and of the Saudi insurance legal framework in particular, and by so doing sheds light on Islamic insurance Takaful applications worldwide. It also engages in an evaluation of insurance products available in Saudi Arabia to determine whether the facilities offered by the insurance companies operating in the country incorporate obstacles and obstructions, which may impact on the effectiveness of governmental regulations and supervision in relation to setting a legislative framework. This influences the extent to which the foundations for the insurance market are secured in Saudi Arabia. The aim of the present study also leads to some suggestions and recommendations for future practice.
| Identifer | oai:union.ndltd.org:bl.uk/oai:ethos.bl.uk:571802 |
| Date | January 2013 |
| Creators | Alhumoudi, Yuosef |
| Contributors | Bantekas, I. |
| Publisher | Brunel University |
| Source Sets | Ethos UK |
| Detected Language | English |
| Type | Electronic Thesis or Dissertation |
| Source | http://bura.brunel.ac.uk/handle/2438/7449 |
Page generated in 0.0097 seconds