Difference between revisions of "Microinsurance, cooperatives and Takaful"

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    Microinsurance,
 
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cooperatives and Takaful
 
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  DFID Workshop May 22nd 2006
 
  
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      Overview of presentation
 
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• Insurance and Poverty Alleviation
 
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• Why is conventional insurance not allowed in Islam
 
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• Principles and models of Takaful
 
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• The possibilities for microtakaful
 
  
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    Can insurance assist poverty
 
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                    alleviation?
 
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• The poor are the most vulnerable
 
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• The impact of losses are more severe
 
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• They have minimum means of recovery
 
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• Success of microfinance schemes show the poor can and
 
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  want to save
 
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• Savings and credit are used unproductively
 
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• The poor need a safety net to escape poverty
 
  
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“Insurance is being recognized
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== Top 20 FREQUENT WORDS ==
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    as an important tool for
+
insurance 16
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      poverty alleviation”
+
takaful 14
 +
microinsurance 9
 +
cooperative 8
 +
model 8
 +
mutual 7
 +
countries 6
 +
poverty 6
 +
sector 6
 +
islamic 5
 +
muslim 5
 +
providing 5
 +
alleviation 4
 +
important 4
 +
microtakaful 4
 +
possibilities 4
 +
principles 4
 +
agent 3
 +
established 3
 +
expertise 3
 +
schemes 3
  
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      Providing microinsurance
 
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              The challenges
 
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• Coverage
 
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• Regulation
 
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• Moral hazard and Fraud
 
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• Adverse selection
 
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• Education and trust
 
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• Technical expertise
 
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• Affordability
 
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• Retention
 
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• Sustainability
 
  
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    Providing microinsurance
 
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            The possibilities
 
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• The cooperative microinsurance model
 
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  History of organising the poor
 
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  Operate for the interest of members by
 
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    members
 
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  Trust
 
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  Ownership and loyalty
 
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  Peer pressure
 
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  Surplus reinvested or redistributed
 
  
−
    Providing microinsurance
+
== DOCUMENT KEY POINTS ==
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            The possibilities
+
*ruling by the european council of fatwa and research a it is well known that in most non islamic countries there are cooperative and mutual insurance companies
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• The partner agent model
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*so it is unlawful for a muslim living in a country where there is such a cooperative insurance company to make an agreement with a commercial insurance companya
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  No-risk fee for microinsurance provider
 
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  Better coverage for policyholder
 
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  Access to new market
 
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  Pooling of risks between informal and formal
 
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    sector
 
  
−
    Providing microinsurance
+
*conclusions a c insurance has an important role to play in poverty alleviation a c cooperative based microinsurance schemes are an effective vehicle to provide insurance to the poor
−
            The possibilities
+
*a c there is a need for microinsurance to be provided to low income sectors in muslim countries and communities
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• The donor agent model
 
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  Access to expertise
 
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  Financial sustainability
 
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  Guiding hand
 
  
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  Why is conventional insurance
 
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        not permissible in Islam?
 
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• Uncertainty (Gharar)
 
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• Gambling (Maisir)
 
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• Interest (Riba)
 
  
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Earlier forms of Islamic insurance
+
''Please note, This is an auto generated summary based on sentances position in the document and other factors''
−
• Dawania – Mutual indemnification amongst officers during
+
== DOCUMENT WORD ANALYSIS ==
−
  the rule of Umar Ibn Al Khattab (2nd Caliph)
+
=== Main Category ===
−
• Diyyah and Aquilah – Blood money and concept of
+
: AlHuda Material\takaful
−
  removing hardship from victims family by payment of
 
−
  Diyyah, on a mutual basis, by relatives of offender
 
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• Marine Insurance – Early second century – mutual fund to
 
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  cover robberies and mishaps
 
  
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  Fiqh Academy Resolution 1985
 
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• Commerical insurance is prohibited
 
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• Alternative contract confirming to principles of Islamic
 
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  dealings is the contract of cooperative insurance, which is
 
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  founded on the basis of charitable donation and Shariah
 
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  compliant dealings
 
  
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          Principles of Takaful
+
=== KeyWords ===
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• Solidarity and joint guarantee
+
taka islam insur malaysia productdeferred shariah countries muslim financial retakaful model growth custom partner developed service mutual bankable provided scheme
−
• Self reliance and self sustaining for community well being
 
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• Assist those that need assistance
 
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• Community pooling system
 
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• Shari’ah approved investments and products
 
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                “Bear ye one another’s burden”
 
  
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    Takaful models in practice
 
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• Not for profit model
 
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• Ta’awuni model – “cooperative insurance”
 
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• Al Mudharabah model – profit sharing
 
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• Al Wakala model – agency agreement
 
  
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    The Global Takaful sector
 
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• 1979 First Takaful Company established
 
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• 1996 – 30 Institutions transacting Takaful
 
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• 2002 – 50 Takaful operators and four Retakaful providers
 
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• 2004 – 80 Takaful operators, 200 Takaful windows and 12
 
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  Retakaful providers
 
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Source: IBB Solicitors, UK – (2005)
 
  
−
The Global Takaful sector
+
== RELATED DOCUMENTS ==
−
    Source: Bhatty (2001)
+
:[[A Review of Takaful by Prof. Khawaja Ahmed Saeed]]
 +
:[[Agency Management,Training and Incentive Programme]]
 +
:[[Audit Issue of Islamic Banking]]
 +
:[[Banca Takaful by Faisal Shahzad Abbassi]]
 +
:[[Best Practices from e- Insurance to e-Takaful by Sami Guello]]
 +
:[[Calculated Risks, Measurable Results]]
 +
:[[Challenges & Issues Faced by Takaful Industry by Mr. Imtiaz ]]
 +
:[[Co-Operative Insurance and Takaful]]
 +
:[[Current Achievements of Takaful by Dr. S. J Malaikah]]
 +
:[[International Cooperative & Mutual Insurance Federation]]
 +
:[[Islamic Banking And Finance Malaysia’s Experience And Achiev]]
 +
:[[Islamic Finance & Investment Symposium by Sohail Jaffar]]
 +
:[[Islamic Insurance in 21st Century by Ahmad Feizal]]
 +
:[[Islamic Insurance Opertunities and Challenges]]
 +
:[[Issues and Challenges in Retakaful by Azman Ismail]]
 +
:[[Leveraging BancaTakaful as a Key Growth Channel by Mr. Rohai]]
 +
:[[Life Family Takaful by Mr. P Ahmed]]
 +
:[[Micro Insurance Co-Operative and Takaful]]
 +
:[[Micro Takaful by Shabir Patal]]
 +
:[[Microinsurance and Takaful]]
 +
:[[Microinsurance, cooperatives and Takaful]]
 +
:[[MicroTakaful – the way forward by Capt. M. Jamil Akhtar]]
 +
:[[Opertunities in Islamic Insurance]]
 +
:[[Present Scenario and Future Potentials of Takaful by Kazi Md]]
 +
:[[ReTakaful by Rohail Ali Khan]]
 +
:[[Syariah Compliant General Takaful Products by Sami Guellouz]]
 +
:[[Takaful and Mutuality by Mohd. Masua Billah]]
 +
:[[Takaful by Abdul Rahim]]
 +
:[[Takaful for Microfinance]]
 +
:[[Takaful Opperunities and Challenges By Azeem Pirani]]
 +
:[[Takaful Products Family Takaful Linked Investment Plans by S]]
 +
:[[Takaful World Prospective Middle East & North Africa]]
 +
:[[Takaful]]
 +
:[[Takful - Zubair Mughal]]
 +
:[[Takful Report]]
 +
:[[The Islamic Vision Presentation]]
 +
:[[The Success of Retakaful by Farid Benbouzid]]
  
−
”A cooperative and mutual scheme providing
 
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  Shariah approved products and investments
 
−
  is permissible under Islamic Law”.
 
  
−
Ruling by the European Council of Fatwa
 
−
                      and Research
 
−
“… It is well known that in most non-Islamic countries there
 
−
  are cooperative and mutual insurance companies. There is
 
−
  no harm from the Shari`ah point of view to participate in
 
−
  these services. So, it is unlawful for a Muslim living in a
 
−
  country where there is such a cooperative insurance
 
−
  company to make an agreement with a commercial
 
−
  insurance company…..”
 
  
−
Providing Takaful to the
+
== DOCUMENT REFERENCES ==
−
  low-income sector
 
  
−
  The need in Muslim countries
 
−
• Social services inadequate or unavailable
 
−
• Large sectors of poverty in many Muslim countries
 
−
• Over half of world’s lowest developed countries have a
 
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  majority Muslim population
 
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• Increasing inequality in Middle East and Gulf countries
 
−
• Religious considerations are important in villages and small
 
−
  communities
 
−
• Established Takaful sector neglecting low income sector
 
  
−
“Takaful is the second most
+
=== Number of Pages ===
−
important social institution to
+
24
−
counter poverty and
 
−
deprivation”
 
−
              Omar Fisher,1999
 
  
−
      How can microtakaful be
 
−
                  provided?
 
−
• Establish informal microtakaful schemes
 
−
• Encouragement of pro-poor organisations
 
−
• Education of government and donor
 
−
  agencies
 
−
• Involvement of Takaful sector
 
−
  Technical expertise
 
−
  Financial assistance
 
−
  Partner-agent model
 
  
−
  The Agricultural Mutual Fund of
+
=== Published Date ===
−
                Lebanon
+
2016-09-17 01:18:29
−
• Established in 1997
 
−
• Health insurance
 
−
• Available for Muslims and non-Muslims
 
−
• 23,000 beneficiaries
 
−
• Premium per family is ten dollars a month
 
  
−
                      Conclusions
 
−
• Insurance has an important role to play in poverty
 
−
  alleviation
 
−
• Cooperative based microinsurance schemes are an
 
−
  effective vehicle to provide insurance to the poor.
 
−
• There is a need for microinsurance to be provided to low
 
−
  income sectors in Muslim countries and communities.
 
−
• A microtakaful scheme based on cooperative/mutual
 
−
  principles is acceptable under Islamic Law
 
  
−
    Thank you
+
== Full Document ==
−
www.icmif.org/takaful
+
 
 +
 
 +
[https://www.hodhood.com/en/HodHoodDocuments/IslamicFinance/Takaful/Microinsurance,%20cooperatives%20and%20Takaful.pdf Read the Full Document]
 +
 
 +
 
 +
[[Category:Islamic Finance]]
 +
 
 +
[[Category: Takaful]]

Latest revision as of 15:30, 8 November 2017


Top 20 FREQUENT WORDS

insurance 16 takaful 14 microinsurance 9 cooperative 8 model 8 mutual 7 countries 6 poverty 6 sector 6 islamic 5 muslim 5 providing 5 alleviation 4 important 4 microtakaful 4 possibilities 4 principles 4 agent 3 established 3 expertise 3 schemes 3


DOCUMENT KEY POINTS

  • ruling by the european council of fatwa and research a it is well known that in most non islamic countries there are cooperative and mutual insurance companies
  • so it is unlawful for a muslim living in a country where there is such a cooperative insurance company to make an agreement with a commercial insurance companya
  • conclusions a c insurance has an important role to play in poverty alleviation a c cooperative based microinsurance schemes are an effective vehicle to provide insurance to the poor
  • a c there is a need for microinsurance to be provided to low income sectors in muslim countries and communities


Please note, This is an auto generated summary based on sentances position in the document and other factors

DOCUMENT WORD ANALYSIS

Main Category

AlHuda Material\takaful


KeyWords

taka islam insur malaysia productdeferred shariah countries muslim financial retakaful model growth custom partner developed service mutual bankable provided scheme


RELATED DOCUMENTS

A Review of Takaful by Prof. Khawaja Ahmed Saeed
Agency Management,Training and Incentive Programme
Audit Issue of Islamic Banking
Banca Takaful by Faisal Shahzad Abbassi
Best Practices from e- Insurance to e-Takaful by Sami Guello
Calculated Risks, Measurable Results
Challenges & Issues Faced by Takaful Industry by Mr. Imtiaz
Co-Operative Insurance and Takaful
Current Achievements of Takaful by Dr. S. J Malaikah
International Cooperative & Mutual Insurance Federation
Islamic Banking And Finance Malaysia’s Experience And Achiev
Islamic Finance & Investment Symposium by Sohail Jaffar
Islamic Insurance in 21st Century by Ahmad Feizal
Islamic Insurance Opertunities and Challenges
Issues and Challenges in Retakaful by Azman Ismail
Leveraging BancaTakaful as a Key Growth Channel by Mr. Rohai
Life Family Takaful by Mr. P Ahmed
Micro Insurance Co-Operative and Takaful
Micro Takaful by Shabir Patal
Microinsurance and Takaful
Microinsurance, cooperatives and Takaful
MicroTakaful – the way forward by Capt. M. Jamil Akhtar
Opertunities in Islamic Insurance
Present Scenario and Future Potentials of Takaful by Kazi Md
ReTakaful by Rohail Ali Khan
Syariah Compliant General Takaful Products by Sami Guellouz
Takaful and Mutuality by Mohd. Masua Billah
Takaful by Abdul Rahim
Takaful for Microfinance
Takaful Opperunities and Challenges By Azeem Pirani
Takaful Products Family Takaful Linked Investment Plans by S
Takaful World Prospective Middle East & North Africa
Takaful
Takful - Zubair Mughal
Takful Report
The Islamic Vision Presentation
The Success of Retakaful by Farid Benbouzid


DOCUMENT REFERENCES

Number of Pages

24


Published Date

2016-09-17 01:18:29


Full Document

Read the Full Document