Difference between revisions of "Microinsurance, cooperatives and Takaful"

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    Microinsurance,
 
cooperatives and Takaful
 
  DFID Workshop May 22nd 2006
 
  
      Overview of presentation
 
• Insurance and Poverty Alleviation
 
• Why is conventional insurance not allowed in Islam
 
• Principles and models of Takaful
 
• The possibilities for microtakaful
 
  
    Can insurance assist poverty
 
                    alleviation?
 
• The poor are the most vulnerable
 
• The impact of losses are more severe
 
• They have minimum means of recovery
 
• Success of microfinance schemes show the poor can and
 
  want to save
 
• Savings and credit are used unproductively
 
• The poor need a safety net to escape poverty
 
  
“Insurance is being recognized
+
== Top 20 FREQUENT WORDS ==
    as an important tool for
+
insurance 16
      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
  
      Providing microinsurance
 
              The challenges
 
• Coverage
 
• Regulation
 
• Moral hazard and Fraud
 
• Adverse selection
 
• Education and trust
 
• Technical expertise
 
• Affordability
 
• Retention
 
• Sustainability
 
  
    Providing microinsurance
 
            The possibilities
 
• The cooperative microinsurance model
 
  History of organising the poor
 
  Operate for the interest of members by
 
    members
 
  Trust
 
  Ownership and loyalty
 
  Peer pressure
 
  Surplus reinvested or redistributed
 
  
    Providing microinsurance
+
== DOCUMENT KEY POINTS ==
            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
• The partner agent model
+
*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
  No-risk fee for microinsurance provider
 
  Better coverage for policyholder
 
  Access to new market
 
  Pooling of risks between informal and formal
 
    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
• The donor agent model
 
  Access to expertise
 
  Financial sustainability
 
  Guiding hand
 
  
  Why is conventional insurance
 
        not permissible in Islam?
 
• Uncertainty (Gharar)
 
• Gambling (Maisir)
 
• Interest (Riba)
 
  
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
 
• Marine Insurance – Early second century – mutual fund to
 
  cover robberies and mishaps
 
  
  Fiqh Academy Resolution 1985
 
• Commerical insurance is prohibited
 
• Alternative contract confirming to principles of Islamic
 
  dealings is the contract of cooperative insurance, which is
 
  founded on the basis of charitable donation and Shariah
 
  compliant dealings
 
  
          Principles of Takaful
+
=== KeyWords ===
• 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
 
• Assist those that need assistance
 
• Community pooling system
 
• Shari’ah approved investments and products
 
                “Bear ye one another’s burden”
 
  
    Takaful models in practice
 
• Not for profit model
 
• Ta’awuni model – “cooperative insurance”
 
• Al Mudharabah model – profit sharing
 
• Al Wakala model – agency agreement
 
  
    The Global Takaful sector
 
• 1979 First Takaful Company established
 
• 1996 – 30 Institutions transacting Takaful
 
• 2002 – 50 Takaful operators and four Retakaful providers
 
• 2004 – 80 Takaful operators, 200 Takaful windows and 12
 
  Retakaful providers
 
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
 
  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
 
  majority Muslim population
 
• 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