Download Takaful Concepts and Operational System: Bangladesh Perspective

Takaful Concepts and Operational System:
Bangladesh Perspective
Asif Mahbub Karim *
Md. Shajul Islam **
Mahmuda Nasrin ***
This study is an attempt to outline observing the rules and regulations of Islamic law , the basis of
shared responsibility in the system of aquila as practised between Muslims of Mecca and Medina
laid the foundation of mutual insurance , basis of Co-operation ,al-mudharabah- which literally
means profit sharing.The takaful operator accepts and invests the takaful contribution (premiums)
received from the takaful participants. Al-takaful this means joint guarantee whereby the participant
jointly guarantee amongst themselves. Tabarru- this refers to the element of donation and the
operation guidelines are the practice must adhere strictly to the Islamic principles of business or
commerce. Business must be conducted openly in accordance with utmost good faith, honesty full
disclosure, truthfulness and fairness in all aspect. Takaful operators are also expected to conduct
operations in a prudent and ethical manner, guided by prevailing legislations, requirements and
guidelines. To further promote the orderly growth of takaful business, the Guidelines on Takaful
Operational Framework (the Guidelines) is issued, outlining parameters to govern operational
processes of takaful operators and defining in detail where necessary, the various rules and
requirements for takaful operators. It is envisaged that the Guidelines will promote the
sustainability of takaful operations, business expansion and innovations and concurrently fulfill the
prudential requirement expected by the regulatory authority. This research is an attempt to
evaluate the operation system of takaful practice in Bangladesh perspective. As the country is
heading forward with good numbers of Islamic financial sectors that motivated us to have an
understanding as to the concept and its operation in Bangladesh.
Keywords: Takaful , Mudarabha , Tabarru, Islamic Finance, Shariah , Aaqilah
Field of Research: Financial Institution /Insurance
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* Asif Mahbub Karim, Assistant Professor, Department of Business Administration , Stamford University
Bangladesh. E-mail: [email protected]
**Md. Shajul Islam, Senior Lecturer, Department of Business Administration, Stamford University Bangladesh.
E-mail: [email protected]
***Mahmuda Nasrin, Lecturer, Department of Business Administration, Stamford University Bangladesh.
E-mail: [email protected]