Hardback
Takaful and Islamic Cooperative Finance
Challenges and Opportunities
9781785363351 Edward Elgar Publishing
Islamic finance distinguishes itself from conventional finance with its strong emphasis on the moral consequences of financial transactions; prohibiting interest, excessive uncertainty, and finance of harmful business. When it comes to risk mitigation, it is unique in its risk sharing approach.
More Information
Critical Acclaim
Contributors
Contents
More Information
Islamic finance distinguishes itself from conventional finance with its strong emphasis on the moral consequences of financial transactions; prohibiting interest, excessive uncertainty, and finance of harmful business. When it comes to risk mitigation, it is unique in its risk sharing approach.
This authoritative book tracks the evolution of the takaful industry over the course of the last four decades and makes a major attempt to highlight the importance of risk sharing through a discussion of various models of cooperation and critical analysis of their performance, including illuminating case studies and a critical assessment of the Islamic insurance model and the role of alternate financing mechanisms. Its high-level discourse on shari’ah compliance and its nuances places emphasis on the importance of solidarity, cooperation, mutuality and reciprocity.
Scholars and practitioners working in Islamic finance will appreciate the context and nuance of this important book, and it will be essential reading for anyone interested in alternative forms of shari''ah-compliant cooperative finance. The book is equally vital for academics and researchers interested in understanding various takaful models and their shari''ah considerations.
This authoritative book tracks the evolution of the takaful industry over the course of the last four decades and makes a major attempt to highlight the importance of risk sharing through a discussion of various models of cooperation and critical analysis of their performance, including illuminating case studies and a critical assessment of the Islamic insurance model and the role of alternate financing mechanisms. Its high-level discourse on shari’ah compliance and its nuances places emphasis on the importance of solidarity, cooperation, mutuality and reciprocity.
Scholars and practitioners working in Islamic finance will appreciate the context and nuance of this important book, and it will be essential reading for anyone interested in alternative forms of shari''ah-compliant cooperative finance. The book is equally vital for academics and researchers interested in understanding various takaful models and their shari''ah considerations.
Critical Acclaim
‘This volume is probably the first of its kind in which the topic of takaful – often neglected by literature – is dealt with in a comprehensive fashion by leading academics and practitioners. The strength of the volume stems from its discussion of the ideas of mutuality and cooperatives, legal and regulatory frameworks, and the potential for takaful in social finance with a view towards sustainable development. Professors Ali and Nisar deserve congratulations for making this important and significant contribution to the literature on takaful.’
– Zamir Iqbal, The World Bank Global Islamic Finance Development Center, Turkey
‘This book is a welcome addition to the literature on takaful, providing fresh perspectives, critical analysis and informative case studies which illustrate how Islamic insurance contributes to social finance in India and Indonesia. The principles of mutuality and solidarity are examined from different perspectives and the merits of a waqf-wakalah model are discussed. The legal and regulatory framework within which takaful operates is examined. The potential for shari’ah-compliant cooperative financial services is assessed and a novel proposal is made for a lifetime annuity in family takaful. The standard of scholarship is impressive and Drs Nazim Ali and Shariq Nisar are to be congratulated in bringing together such a distinguished group of academics and professionals. The book is an essential purchase for libraries with collections in Islamic finance.’
– Rodney Wilson, Durham University and INCEIF, Kuala Lumpur
– Zamir Iqbal, The World Bank Global Islamic Finance Development Center, Turkey
‘This book is a welcome addition to the literature on takaful, providing fresh perspectives, critical analysis and informative case studies which illustrate how Islamic insurance contributes to social finance in India and Indonesia. The principles of mutuality and solidarity are examined from different perspectives and the merits of a waqf-wakalah model are discussed. The legal and regulatory framework within which takaful operates is examined. The potential for shari’ah-compliant cooperative financial services is assessed and a novel proposal is made for a lifetime annuity in family takaful. The standard of scholarship is impressive and Drs Nazim Ali and Shariq Nisar are to be congratulated in bringing together such a distinguished group of academics and professionals. The book is an essential purchase for libraries with collections in Islamic finance.’
– Rodney Wilson, Durham University and INCEIF, Kuala Lumpur
Contributors
Contributors: A. Abozaid, A.U.F. Ahmad, A. Akhtar, M. Al Bashir Al Amine, S.N. Ali, H. Allam, M. Ayub, A. Bhatty, I. Bin Mahbob, J.W. Bradford, S.E.B. Carmody, M.A. El-Gamal, M. Faisal, M.F. Haq, A. Nana, V. Nienhaus, S. Nisar, U.A. Oseni, M.M. Rahman, A. Rehman, M.A. Samad, B. Shafiq, H. Sultan, A.-R. Syed, T.A. Uddin
Contents
Contents:
Introduction
PART I: INTRODUCTION TO TAKAFUL: FORM, FUNCTION AND CRITICISM
1. Takaful Journey: the Past and Present and Future
Ajmal Bhatty and Shariq Nisar
2. Solidarity, Cooperation, and Mutuality in Takāful
Volker Nienhaus
3. Mutuality, Reciprocity, and Justice within the Context of a Unified Theory of Riba and Ghara
Mahmoud A. El-Gamal
4. A Proposed Marriage between Endowments, Mutual Insurance, and the Institution of Agency in Islamic Law—An Introduction to the Waqf-Wakalah Model of Takaful
Abdullah Nana
5. A Critical Shari’ah Review of Takaful Structures: Towards a Better Model
Abdulazeem Abozaid
PART II: REGULATORY ENVIRONMENT AND LEGAL ASPECTS OF TAKAFUL
6. New Horizons: The Potential for Shari’ah-compliant Cooperative and Mutual Financial Services
Sara E.B. Carmody
7. Toward a Watershed in Takaful Dispute Resolution: From Litigation to Effective Dispute Management
Umar A. Oseni
8. Fatwā and its Role in Regulatory Capture and Arbitrage
Joe W. Bradford
PART III: TAKAFUL PRODUCT ANALYSIS
9. The Nature of Retakaful: Risk Sharing or Transferring Risks?
Abu Umar Faruq Ahmad, Ismail Bin Mahbob and Muhammad Ayub
10. Commercial Credit Takaful
Muhammad Al Bashir Muhammad Al Amine
11. Shari’ah Compliant High Watermark Protected Lifetime Annuity in Family Takaful?
Hiba Allam and Volker Nienhaus
PART IV: TAKAFUL AS SOCIAL FINANCE
12. Reimagining takaful: A New Model for Social Banking
Hussam Sultan and Abdur-Rahman Syed
13. Islamic Co-operatives: A Route to Poverty Alleviation and Economic Development
Mian Farooq Haq and Bushra Shafiq
14. Scaling Poverty Reduction in Indonesia: Enhancing the Institutional Effectiveness of Islamic Microfinance Institutions
Tanvir Ahmed Uddin and Muhammad Maaz Rahman
15. Micro-takaful in India: A Path Towards Financial Inclusion and Sustainable Development
Mohammad Faisal, Asif Akhtar, Asad Rehman and M. Abdul Samad
Index
Introduction
PART I: INTRODUCTION TO TAKAFUL: FORM, FUNCTION AND CRITICISM
1. Takaful Journey: the Past and Present and Future
Ajmal Bhatty and Shariq Nisar
2. Solidarity, Cooperation, and Mutuality in Takāful
Volker Nienhaus
3. Mutuality, Reciprocity, and Justice within the Context of a Unified Theory of Riba and Ghara
Mahmoud A. El-Gamal
4. A Proposed Marriage between Endowments, Mutual Insurance, and the Institution of Agency in Islamic Law—An Introduction to the Waqf-Wakalah Model of Takaful
Abdullah Nana
5. A Critical Shari’ah Review of Takaful Structures: Towards a Better Model
Abdulazeem Abozaid
PART II: REGULATORY ENVIRONMENT AND LEGAL ASPECTS OF TAKAFUL
6. New Horizons: The Potential for Shari’ah-compliant Cooperative and Mutual Financial Services
Sara E.B. Carmody
7. Toward a Watershed in Takaful Dispute Resolution: From Litigation to Effective Dispute Management
Umar A. Oseni
8. Fatwā and its Role in Regulatory Capture and Arbitrage
Joe W. Bradford
PART III: TAKAFUL PRODUCT ANALYSIS
9. The Nature of Retakaful: Risk Sharing or Transferring Risks?
Abu Umar Faruq Ahmad, Ismail Bin Mahbob and Muhammad Ayub
10. Commercial Credit Takaful
Muhammad Al Bashir Muhammad Al Amine
11. Shari’ah Compliant High Watermark Protected Lifetime Annuity in Family Takaful?
Hiba Allam and Volker Nienhaus
PART IV: TAKAFUL AS SOCIAL FINANCE
12. Reimagining takaful: A New Model for Social Banking
Hussam Sultan and Abdur-Rahman Syed
13. Islamic Co-operatives: A Route to Poverty Alleviation and Economic Development
Mian Farooq Haq and Bushra Shafiq
14. Scaling Poverty Reduction in Indonesia: Enhancing the Institutional Effectiveness of Islamic Microfinance Institutions
Tanvir Ahmed Uddin and Muhammad Maaz Rahman
15. Micro-takaful in India: A Path Towards Financial Inclusion and Sustainable Development
Mohammad Faisal, Asif Akhtar, Asad Rehman and M. Abdul Samad
Index
