Tazkia Islamic Finance and Business Review
Vol 8, No 2 (2013)

Shariah Compliance of Wakalah Concept in Takaful Operation: A Case Study of A Takaful Operation in Malaysia

Hamid, Mohamad Abdul ( Faculty of Economy and Management, National University of Malaysia )



Article Info

Publish Date
09 Mar 2014

Abstract

Objective – The main objective of this paper is to focus on wakalah model and its impact in takaful operation and   to  evaluate  the  compliance  of  takaful  company  with  shari’ah principles in applying the wakalah concept.Methods – qualitative method which is based on library research. Reference to many books, articles, proceeding papers, handouts, journals, and internet source regarding wakalah by Etiqa Takaful Berhad.Result–The finding of this research shows that the takaful operation in Etiqa Takaful Berhad relies solely on the role of agents to market and promote their products. The agents shall act in accordance with the agreement signed by both parties as to the duties and work to be done by the agent. Binding agreement between the agent and the principal in Etiqa Takaful Berhad is  the Family Takaful  Agency Agreement  and  the General  Takaful  Agency Agreement.Conclusion –It can be concluded that  the agency system should be further strengthened as it has important role in takaful business. Indirectly, it can enhance the development of Islamic finance in Malaysia as well as make it known to the society that it is a good system and can completely replace conventional insurance in this industry.Keywords: Wakalah, Agency System, Takaful, Conventional Insurance

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Journal Info

Abbrev

tifbr

Publisher

Subject

Economics, Econometrics & Finance

Description

Tazkia Islamic Finance and Business Review (TIFBR) is a peer-reviewed journal published by the Institute for Research and Community Empowerment (IRCE), Tazkia University College of Islamic Economics in collaboration with Association of Islamic Economics Lecturers (ADESY). The Journal is semi-annual ...