SHARI'AH INSPECTION OF SURPLUS DISTRIBUTION IN TAKÓFULOPERATIONS
International Journal of Economics, Management and Accounting
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Title |
SHARI'AH INSPECTION OF SURPLUS DISTRIBUTION IN TAKÓFULOPERATIONS
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Creator |
Soualhi, Younes
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Description |
This researchintendstoshedlightona number ofissues related to surplus distribution in tak?ful. The first part is devotedtorevisiting the main financial concepts related to the surplus such as the underwriting surplus and profit. Modes of distribution suchas pro-rata andoffsettingwill alsobe discussed inthe lightof equityprinciple advocated by Shari'ah . The second partdeals withthe major juristicviews and doctrines delineated infavor of surplus distribution. Legaldoctrines such as the ownership or otherwise of the surplus after donation would be meticulouslydiscussed and reviewed in the lightof currentpractices of takaful operators. The last part deals with a general outline of Shari'ah parameters inrelationtoequitable surplus distribution. Thisisfollowed bya scrutinyof surplus distribution practices of somemodern takaful operators both inMalaysiaand abroad. The research argues thatwhileitis strongly recommended to redistribute the surplus tothe participants only, there is a considerable Shari'ah ground allowing takaful operators to share in the surplus for reasonsoutlinedinthis research. JEL Classification:G22, Z12 Keywords: Takaful, Surplus distribution, Islamic finance, Malaysia
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Publisher |
Kulliyyah of Economics and Management Sciences
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Date |
2013-03-04
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Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion Peer-reviewed Article |
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Format |
application/pdf
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Identifier |
http://journals.iium.edu.my/enmjournal/index.php/enmj/article/view/172
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Source |
International Journal of Economics, Management and Accounting; Vol 18 No 2 (2010)
2462-1420 |
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Language |
eng
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Relation |
http://journals.iium.edu.my/enmjournal/index.php/enmj/article/view/172/141
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