This presentation, and many Islamic scholars make the mistake of reviewing the individual contract, not the overall risk position of the individual buying insurance. Insurance reduces uncertainty (gharar), and that is a good thing. Both takaful and conventional insurance involve insurance contracts. If you dont make the donation (premium) to the takaful pool you do not get the coverage, just like conventional insurance. The reference to gambling is mistaken. Gamblers exhibit risk preference, whereas purchasers of insurance display risk aversion (the opposite!) . These scholars need to take a basic course on risk management.
And in conventional insurance the company invest in equity, debt and bound markets without checking Shari'ah compliance of the asset. And in this insurance company invest only in Shari'ah compliant assets
@@Logical_reasoning1 Mutual insurance companies also pay dividends to the policyholders. To my mind mutual is the same as takaful (apart from the investment issues). Mutuals have trouble (in western economies) getting enough capital, so they sometimes de-mutualize to become joint stock companies.
@@Logical_reasoning1 Sharia compliance - at the time of the prophet there were no insurance companies, no actuarial science, and no securities markets. So the opinions of Islamic scholars on insurance company investments are rather speculative (apart perhaps from pork, alcohol and gambling). I would rather have the investments checked by a knowledgeable portfolio manager, an actuary, and a tough minded insurance regulator to make sure the insurance company is solvent and profitable. On the other hand, I like the emphasis given to ethics in Islamic finance. Islamic scholars should focus more on ethics, where the world surely needs more direction.
I have a question for conventional we have to pay for a premium and somehow as we all know sometimes the return we get can be higher than the premium we paid as a total. How does the money increase? Does the insurance company invest the money we paid to get an interest? So does that mean takaful doesnt invest? So of takaful it is impossible to paid return higher than what we donate? The
Good question. Higher amount paid to unfortunate family is from waqhf pool, fund and interest free investment portfolio, after paying Wakala fee (Managerial fee) to Takaful Company. Here Takaful Company is not the owner but just a manager like Hamdard laboratories which is Waghf. For further detail study, please read my facebook and LinkedIn.
What they invest in has no bearing, if that's the case don't use banks, or any large company riba is only haram for the one who earns it not if it's used to pay you, that's not under the scope of riba, Allahu'Alim, you have to be clear on what you're saying before you teach others bro, what is meant by Riba is you pay money (policy amount) and receive money back that's more (pay out) money for money which is the essence of Riba but Allahu'Alim if thats riba in the sense of an increment on a loan.
He is completely out of real world. Insurance contracts are unilateral, meaning that only the insurer makes legally enforceable promises in the contract. The insured is not required to pay the premiums, but the insurer is required to pay the benefits under the contract if the insured has paid the premiums and met certain other basic provisions. So sir please do real research about conventional insurance and then teach. Miss Guiding community is not good.
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Don't say the conventional insurance is a form of gambling. It's different from true essence of gambling. Biggest issue is the interest based income
This presentation, and many Islamic scholars make the mistake of reviewing the individual contract, not the overall risk position of the individual buying insurance. Insurance reduces uncertainty (gharar), and that is a good thing. Both takaful and conventional insurance involve insurance contracts. If you dont make the donation (premium) to the takaful pool you do not get the coverage, just like conventional insurance. The reference to gambling is mistaken. Gamblers exhibit risk preference, whereas purchasers of insurance display risk aversion (the opposite!) . These scholars need to take a basic course on risk management.
Dear Hannah
In conventional insurance the surplus money goes as profit to company
But
In case of Takaful it gets back to the customer
And in conventional insurance the company invest in equity, debt and bound markets without checking Shari'ah compliance of the asset.
And in this insurance company invest only in Shari'ah compliant assets
@@Logical_reasoning1 Mutual insurance companies also pay dividends to the policyholders. To my mind mutual is the same as takaful (apart from the investment issues).
Mutuals have trouble (in western economies) getting enough capital, so they sometimes de-mutualize to become joint stock companies.
@@Logical_reasoning1 Sharia compliance - at the time of the prophet there were no insurance companies, no actuarial science, and no securities markets. So the opinions of Islamic scholars on insurance company investments are rather speculative (apart perhaps from pork, alcohol and gambling). I would rather have the investments checked by a knowledgeable portfolio manager, an actuary, and a tough minded insurance regulator to make sure the insurance company is solvent and profitable.
On the other hand, I like the emphasis given to ethics in Islamic finance. Islamic scholars should focus more on ethics, where the world surely needs more direction.
What is uncertanity i dont understand timimng payment..plz examplise easy way
I have a question for conventional we have to pay for a premium and somehow as we all know sometimes the return we get can be higher than the premium we paid as a total. How does the money increase? Does the insurance company invest the money we paid to get an interest? So does that mean takaful doesnt invest? So of takaful it is impossible to paid return higher than what we donate? The
Nor Farah Arina Binti
🧐
Good question. Higher amount paid to unfortunate family is from waqhf pool, fund and interest free investment portfolio, after paying Wakala fee (Managerial fee) to Takaful Company. Here Takaful Company is not the owner but just a manager like Hamdard laboratories which is Waghf. For further detail study, please read my facebook and LinkedIn.
great video
it was really helpful for me.
What they invest in has no bearing, if that's the case don't use banks, or any large company riba is only haram for the one who earns it not if it's used to pay you, that's not under the scope of riba, Allahu'Alim, you have to be clear on what you're saying before you teach others bro, what is meant by Riba is you pay money (policy amount) and receive money back that's more (pay out) money for money which is the essence of Riba but Allahu'Alim if thats riba in the sense of an increment on a loan.
Sir you misunderstood it. Please read articles of my facebook and linkedIn.
Satisfying 😌
He is completely out of real world. Insurance contracts are unilateral, meaning that only the insurer makes legally enforceable promises in the contract. The insured is not required to pay the premiums, but the insurer is required to pay the benefits under the contract if the insured has paid the premiums and met certain other basic provisions. So sir please do real research about conventional insurance and then teach. Miss Guiding community is not good.
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not accurate
Completely nonsense dlvrd