Is Mudharabah Key to Takaful? a waiver of industrial confusion...

ISSUE:

Is Mudharabah (co-pertnership) crucial (wajib) to the operation of takaful?

SOLUTION:

No, because Mudharabah is a technique used for the commercial purposes, but the initial objective of takaful is not to have a commercial gain rather it is a scheme with mutual cooperation to provide a material security against a defined risk. Therefore, Mudharabah is not crucial (wajib) to the operation of takaful . In other word, the takaful scheme does not fundamentally depend on the doctrine of Mudharabah.

ISSUE:

Can the operation of takaful be Halal (permissible) without Mudharabah?

SOLUTION:

Yes, becasue takaful scheme basically depends on the doctrines of al-'Aqd, al-Tabarru' and al-Amanah. But, the doctrine of al-Mudharabah provides facilities for an additional commercial advantage to the participants and the operators as well, which is certainly not the prime objective of the takaful scheme.

ISSUE:

Is tabarru' a crucial to takaful? If so how crucial is it compared to Mudharabah?

SOLUTION:

Yes, because the contribution made in general takaful shall be considered as Tabarru' but not as a Mudharabah, while in family takaful, the amount credited into PSA is the only amount segregated to meet the objective of takaful scheme (i.e. to provide the coverage against a defined risk is taken basically from the PSA, which is an account of Tabarru). Therefore, Tabarru is crucial for the Takaful scheme as compared to al-Mudharabah, which is only being used for the additional commercial benefits, and has nothing to do with the central objective of the takaful scheme.

ISSUE:

Between the intention of protection and investment, which one should come first when a person participates in a takaful scheme?

SOLUTION:

The intention of protection should come first before the intention of investment in takaful scheme. For the investment, the capital owner may find other avenues like Islamic Banks etc. But once one thinks of taking an initiative to provide a material sequrity against a defined risk, should go through a takaful shceme, and that is why the takaful industry is being established. Hence, the intention of protection in takaful scheme shall not be defeated by the intention of investment.