Arguments against Mudârabah model in Takâful insurance

Abstract

Takâful is an alternative Sharî’ah compliant mechanism for conventional insurance system, practiced in several countries in the world. As it is a new innovation in the insurance business it has some Sharî’ah jurisprudential issues in its some segments when it comes into application. It has several models in practice namely Ta’âwuni, Mudârabah, Wakâlah, Hybrid and Waqf. In this connection, I intend to look into the issues of Mudârabah model under the light of Al Qur’ân and Al Sunnah with the ideas of eminent scholars in this field as it contravenes few Sharî’ah and legal principals. In addition to that, I tried to search into this issue At the end, I forwarded some ideas and solutions for the issues.