Evaluation of Contemporary Takaful ¯ Practices from the Perspective of Maqas¯ . id-al-Shar¯ı‘ah

Abstract

Purpose: Insurance has always been a matter of concern among Islamic scholars owing to its involvement in interest, gharar, gambling, and other prohibited elements. Tak¯aful has been introduced, as a Shar¯ı‘ah compliant alternative to conventional insurance. However, Shar¯ı‘ah scholars and economists have reservations and doubts regarding the current practices of tak¯aful with regard to maq¯as. id-al-Shar¯ı‘ah. Methodology: The current study has examined as to how far the current tak¯aful practices are in conformity with the objectives of Shar¯ı‘ah relevant to Islamic finance and tak¯aful. For this purpose, at first place, the study identified the related objectives of Shar¯ı‘ah through utilizing the classical and contemporary writings on the subject. For the current study, the important objectives of Shar¯ı‘ah i) h. ifz . al-d¯ın, ii) h. ifz . al-m¯al, iii) establishment of justice, fairness and equity, and iv) social welfare and wellbeing of the society, have been selected, as they are very close to and directly linked with the Islamic finance. Findings: The paper finds that current tak¯aful practices meet, to a greater extent, requirement of a valid or Shar¯ı‘ah compliant transaction. However, these tak¯aful institutions have failed to achieve the desired objective of Shar¯ı‘ah related to financial dealings. Tak¯aful institutions lack transparency and fairness in their transactions. Moreover, many unethical practices have been reported on part of tak¯aful agents. Significance: The study is unique in its nature as tak¯aful practices have not been analyzed against these four specific maq¯as. id of Shar¯ı‘ah. The study may open a discussion on the objectivity of tak¯aful institutions in the context of Pakistan. The study would also help tak¯aful institutions in reformulating their policies in the light of objectives of Shar¯ı‘ah.

Integrating environmental, social and governance (ESG) principles with Maqasid al-Shariah: a blueprint for sustainable takaful operations

“…This conceptual research proposes a novel integration of ESG principles with Maqasid al-Shariah within the framework of Takaful operations (Abdullah et al , 2023; Tahir et al , 2021). The research strategy and technique used for this study are described in this section.…”

“…Takaful operations (Khalilurrahman and Mubarrak, 2022;Muhamat et al, 2021;Muhammad, 2022;Nasir et al, 2020;Tahir et al, 2021).…”

“…In an era marked by unprecedented global challenges, the convergence of ethical finance, sustainability and Islamic principles has taken centre stage. The Takaful industry, rooted in Islamic ethics and principles, has become increasingly aware of its pivotal role in promoting ethical and responsible financial practices while upholding the values of Maqasid al-Shariah (Tahir et al , 2021). Simultaneously, the global movement towards environmental, social and governance (ESG) principles has ushered in a new paradigm for businesses and financial institutions, emphasising responsible governance, environmental stewardship and societal well-being.…”

“…This conceptual paper endeavours to explore the innovative integration of ESG principles within the Takaful framework, guided by the principles of Maqasid al-Shariah (Tahir et al , 2021). The central premise of this endeavour is to construct a comprehensive blueprint for Maqasid-driven ESG integration in Takaful – a blueprint that reflects the ethical underpinnings of Islamic finances and aligns Takaful operations with contemporary global ethical imperatives.…”

Counter-Narrative of Radical Religious Beliefs of Jihadist Groups: A Study of the Kutb Sittah Hadith Books on Tolerance

“…This can be related to the concept of maqasid al-shariah in Islam. Maqasid al-shariah emphasizes Islamic law's main goals, which include preserving well-being and justice in society (Ali, 2023;Rose & Johnson, 2020;Tahir et al, 2021). One of the main goals of maqasid al-shariah is to preserve religion (din), involving maintaining good relationships among Muslims.…”