AN ANALYSIS OF LEGAL AND REGULATORY ISSUES FOR TAKAFUL OPERATIONS UNDER ISLAMIC LAW

Takaful is the alternative method of providing insurance services that is deemed acceptable for Muslims but since its introduction, questions have been raised concerning the methods used in providing the service and the legal implications attached to each facet of operations. The aim of this paper is to highlight the various concerns raised by Muslim scholars and analysts concerning takaful operations. Using a mainly doctrinal method, this paper looks at the different views of Islamic scholars on conventional insurance and the legal and practical aspects of takaful insurance. Without limiting the study to a particular country, it also looks at the different models used by takaful operators and analyses several issues which may still riddle takaful practice. It concludes by proffering suggestions and recommendations that may resolve issues that have been noticed.