tag:blogger.com,1999:blog-71015571018075365162024-03-08T13:22:16.555-08:00billah's thought for the dayworld islamic finance, investment & commerce - the way forward....Mohd. Ma'sum Billahhttp://www.blogger.com/profile/14029507777590329011noreply@blogger.comBlogger127125tag:blogger.com,1999:blog-7101557101807536516.post-5417777805144975762017-08-29T18:58:00.001-07:002017-08-29T18:59:08.618-07:00Islamic Financial Planning (Ch 2) & Islamic Common Market (Ch 5) in a Newly Published Book: Islamic Economics (2017)<div class="_5pbx userContent" data-ft="{"tn":"K"}" id="js_mn" style="font-family: inherit; font-size: 14px; line-height: 1.38;">
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Sharing my humble Chapters (2: Islamic Financial Planning & 5: Islamic Common Market) in a new book "Islamic Economics" (2017), published by Palgrave MacMillan (UK):</div>
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<span class="_3c21" style="font-family: inherit;">This book explores contemporary empirical issues in Islamic economics. It begins by outlining current trends in Islamic economics and before identifying...</span></div>
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Mohd. Ma'sum Billahhttp://www.blogger.com/profile/14029507777590329011noreply@blogger.com0tag:blogger.com,1999:blog-7101557101807536516.post-45182757851811047492017-01-26T13:43:00.002-08:002017-01-28T05:38:44.684-08:00Asset-Backed vs Asset Based Sukuk<div align="center" class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 7.5pt; margin-right: 7.5pt; margin-top: 0in; text-align: center;">
<b><span style="color: orange; font-size: 16.0pt;">Asset-Backed Sukuk<o:p></o:p></span></b></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 7.5pt; margin-right: 7.5pt; margin-top: 0in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 7.5pt; margin-right: 7.5pt; margin-top: 0in; text-align: justify;">
<span style="font-size: 10.0pt; mso-bidi-font-family: "Lucida Sans Unicode"; mso-fareast-font-family: "Times New Roman";">It involves granting the investor
(sukuk holder) a share of a tangible asset or business venture along with a
corresponding share of the total risk (that is, a share commensurate with this
ownership).<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 7.5pt; margin-right: 7.5pt; margin-top: 0in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 7.5pt; margin-right: 7.5pt; margin-top: 0in; text-align: justify;">
<span style="font-size: 10.0pt; mso-bidi-font-family: "Lucida Sans Unicode"; mso-fareast-font-family: "Times New Roman";">In this structure, there is a true
sale transaction, where the originator sells the underlying assets to a Special
Purpose Vehicle (SPV) that holds these assets and issues the sukuk backed by
them. <o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 7.5pt; margin-right: 7.5pt; margin-top: 0in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 7.5pt; margin-right: 7.5pt; margin-top: 0in; text-align: justify;">
<span style="font-size: 10.0pt; mso-bidi-font-family: "Lucida Sans Unicode"; mso-fareast-font-family: "Times New Roman";">The buyers of sukuk don't have
recourse to the originator if payments are less than usual. A true sale implies
that the assets of the issuer will not be added to the assets of the originator
in the event of default and liquidation. <o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 7.5pt; margin-right: 7.5pt; margin-top: 0in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 7.5pt; margin-right: 7.5pt; margin-top: 0in; text-align: justify;">
<span style="font-size: 10.0pt; mso-bidi-font-family: "Lucida Sans Unicode"; mso-fareast-font-family: "Times New Roman";">The sukuk holders must assume any
losses in case of impairment of sukuk assets. <o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 7.5pt; margin-right: 7.5pt; margin-top: 0in; text-align: justify;">
<br /></div>
<span style="font-family: "calibri" , "sans-serif"; font-size: 10.0pt; line-height: 115%;">Asset-backed
sukuk are, thus, closer to equity than debt, and for that reason are not so
popular in the market of sukuk offerings.</span><br />
<span style="font-family: "calibri" , "sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span>
<span style="font-family: "calibri" , "sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span>
<br />
<div align="center" class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 7.5pt; margin-right: 7.5pt; margin-top: 0in; text-align: center;">
<b><span style="color: orange; font-size: 16pt;">Asset-Based Sukuk</span></b></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 7.5pt; margin-right: 7.5pt; margin-top: 0in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 7.5pt; margin-right: 7.5pt; margin-top: 0in; text-align: justify;">
<span style="font-size: 10.0pt; mso-bidi-font-family: "Lucida Sans Unicode"; mso-fareast-font-family: "Times New Roman";">It involves the issuer purchasing
the underlying assets and then investing, trading or leasing them on behalf the
investors (sukuk holders), using the funds raised through the issued
certificates (sukuk). <o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 7.5pt; margin-right: 7.5pt; margin-top: 0in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 7.5pt; margin-right: 7.5pt; margin-top: 0in; text-align: justify;">
<span style="font-size: 10.0pt; mso-bidi-font-family: "Lucida Sans Unicode"; mso-fareast-font-family: "Times New Roman";">This structure, most often, takes
the guise of a sale-lease to the originator and is embedded with a binding
promise (<i>wa'ad mulzeem</i>)</span><span style="font-size: 10.0pt; mso-bidi-font-family: "Lucida Sans Unicode"; mso-fareast-font-family: "Times New Roman";"> from the
originator to repurchase the underlying assets at maturity. In this structure,
the sukuk holders can only require the originator to purchase the underlying
assets. <o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 7.5pt; margin-right: 7.5pt; margin-top: 0in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 7.5pt; margin-right: 7.5pt; margin-top: 0in; text-align: justify;">
<span style="font-size: 10.0pt; mso-bidi-font-family: "Lucida Sans Unicode"; mso-fareast-font-family: "Times New Roman";">As such, the sukuk holders have an
unsecured debt claim against the originator embodied in the payment of the
purchase price following an execution of the binding purchase promise. This
implies that sukuk holders don't have full recourse to the underlying assets
and the underlying assets are not used as collateral.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 7.5pt; margin-right: 7.5pt; margin-top: 0in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 7.5pt; margin-right: 7.5pt; margin-top: 0in; text-align: justify;">
<span style="font-size: 10.0pt; mso-bidi-font-family: "Lucida Sans Unicode"; mso-fareast-font-family: "Times New Roman";"> Asset-based sukuk grant only beneficial
ownership to the sukuk holders, so that in case of default, the investor would be
left without any claim on these assets. In this structure, the originator
typically transfers to the investors only the beneficial ownership of the SPV
issuer. <o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 7.5pt; margin-right: 7.5pt; margin-top: 0in; text-align: justify;">
<br /></div>
<span style="font-family: "calibri" , "sans-serif"; font-size: 10.0pt; line-height: 115%;">
</span><br />
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 7.5pt; margin-right: 7.5pt; margin-top: 0in; text-align: justify;">
<span style="font-size: 10.0pt; mso-bidi-font-family: "Lucida Sans Unicode"; mso-fareast-font-family: "Times New Roman";">But shari'a stipulates a transfer
of assets to sukuk holders. However, since investors have no recourse to the
assets, the structure doesn't pay any attention to the asset risk, but rather
concentrates on the creditworthiness of the sponsors of the sukuk</span><br />
<span style="font-size: 10.0pt; mso-bidi-font-family: "Lucida Sans Unicode"; mso-fareast-font-family: "Times New Roman";"><br /></span>
<br />
<div class="MsoNormal" style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; line-height: normal; margin: 0in 7.5pt 0.0001pt;">
<br /></div>
<table border="0" cellpadding="0" cellspacing="0" class="MsoNormalTable" style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border-collapse: collapse;">
<tbody>
<tr style="height: 9.0pt; mso-yfti-firstrow: yes; mso-yfti-irow: 0;">
<td style="background: yellow; border: solid #666666 1.0pt; height: 9.0pt; mso-border-alt: solid #666666 .5pt; padding: 4.0pt 4.0pt 4.0pt 4.0pt; width: 166.0pt;" width="332"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: center;">
<b><span style="color: #002060; font-family: "tahoma" , "sans-serif"; font-size: 12.0pt;">Sukuk<o:p></o:p></span></b></div>
</td>
<td style="background: yellow; border-left: none; border: solid #666666 1.0pt; height: 9.0pt; mso-border-alt: solid #666666 .5pt; mso-border-left-alt: solid #666666 .5pt; padding: 4.0pt 4.0pt 4.0pt 4.0pt; width: 261.0pt;" width="522"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: center;">
<b><span style="color: #002060; font-family: "tahoma" , "sans-serif"; font-size: 12.0pt;">Asset-Backed<o:p></o:p></span></b></div>
</td>
<td style="background: yellow; border-left: none; border: solid #666666 1.0pt; height: 9.0pt; mso-border-alt: solid #666666 .5pt; mso-border-left-alt: solid #666666 .5pt; padding: 4.0pt 4.0pt 4.0pt 4.0pt; width: 229.0pt;" width="458"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: center;">
<b><span style="color: #002060; font-family: "tahoma" , "sans-serif"; font-size: 12.0pt;">Asset-Based<o:p></o:p></span></b></div>
</td>
</tr>
<tr>
<td style="background: #DDD9C3; border-top: none; border: solid #666666 1.0pt; mso-background-themecolor: background2; mso-background-themeshade: 230; mso-border-alt: solid #666666 .5pt; mso-border-top-alt: solid #666666 .5pt; padding: 4.0pt 4.0pt 4.0pt 4.0pt; width: 166.0pt;" width="332"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<b><span style="color: #333333; font-family: "garamond" , "serif"; font-size: 12.0pt;">Issuer<o:p></o:p></span></b></div>
</td>
<td style="border-bottom: solid #666666 1.0pt; border-left: none; border-right: solid #666666 1.0pt; border-top: none; mso-border-alt: solid #666666 .5pt; mso-border-left-alt: solid #666666 .5pt; mso-border-top-alt: solid #666666 .5pt; padding: 4.0pt 4.0pt 4.0pt 4.0pt; width: 261.0pt;" width="522"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="color: #333333; font-family: "garamond" , "serif"; font-size: 12.0pt;">SPV<o:p></o:p></span></div>
</td>
<td style="border-bottom: solid #666666 1.0pt; border-left: none; border-right: solid #666666 1.0pt; border-top: none; mso-border-alt: solid #666666 .5pt; mso-border-left-alt: solid #666666 .5pt; mso-border-top-alt: solid #666666 .5pt; padding: 4.0pt 4.0pt 4.0pt 4.0pt; width: 229.0pt;" width="458"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="color: #333333; font-family: "garamond" , "serif"; font-size: 12.0pt;">Company<o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="background: #DDD9C3; border-top: none; border: solid #666666 1.0pt; mso-background-themecolor: background2; mso-background-themeshade: 230; mso-border-alt: solid #666666 .5pt; mso-border-top-alt: solid #666666 .5pt; padding: 4.0pt 4.0pt 4.0pt 4.0pt; width: 166.0pt;" width="332"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<b><span style="color: #333333; font-family: "garamond" , "serif"; font-size: 12.0pt;">Process<o:p></o:p></span></b></div>
</td>
<td style="border-bottom: solid #666666 1.0pt; border-left: none; border-right: solid #666666 1.0pt; border-top: none; mso-border-alt: solid #666666 .5pt; mso-border-left-alt: solid #666666 .5pt; mso-border-top-alt: solid #666666 .5pt; padding: 4.0pt 4.0pt 4.0pt 4.0pt; width: 261.0pt;" width="522"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="color: #333333; font-family: "garamond" , "serif"; font-size: 12.0pt;">Securitization of tangible assets<o:p></o:p></span></div>
</td>
<td style="border-bottom: solid #666666 1.0pt; border-left: none; border-right: solid #666666 1.0pt; border-top: none; mso-border-alt: solid #666666 .5pt; mso-border-left-alt: solid #666666 .5pt; mso-border-top-alt: solid #666666 .5pt; padding: 4.0pt 4.0pt 4.0pt 4.0pt; width: 229.0pt;" width="458"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="color: #333333; font-family: "garamond" , "serif"; font-size: 12.0pt;">Securitization of receivables<o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="background: #DDD9C3; border-top: none; border: solid #666666 1.0pt; mso-background-themecolor: background2; mso-background-themeshade: 230; mso-border-alt: solid #666666 .5pt; mso-border-top-alt: solid #666666 .5pt; padding: 4.0pt 4.0pt 4.0pt 4.0pt; width: 166.0pt;" width="332"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<b><span style="color: #333333; font-family: "garamond" , "serif"; font-size: 12.0pt;">Characterization<o:p></o:p></span></b></div>
</td>
<td style="border-bottom: solid #666666 1.0pt; border-left: none; border-right: solid #666666 1.0pt; border-top: none; mso-border-alt: solid #666666 .5pt; mso-border-left-alt: solid #666666 .5pt; mso-border-top-alt: solid #666666 .5pt; padding: 4.0pt 4.0pt 4.0pt 4.0pt; width: 261.0pt;" width="522"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="color: #333333; font-family: "garamond" , "serif"; font-size: 12.0pt;">Equity-like<o:p></o:p></span></div>
</td>
<td style="border-bottom: solid #666666 1.0pt; border-left: none; border-right: solid #666666 1.0pt; border-top: none; mso-border-alt: solid #666666 .5pt; mso-border-left-alt: solid #666666 .5pt; mso-border-top-alt: solid #666666 .5pt; padding: 4.0pt 4.0pt 4.0pt 4.0pt; width: 229.0pt;" width="458"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="color: #333333; font-family: "garamond" , "serif"; font-size: 12.0pt;">Debt-like<o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="background: #DDD9C3; border-top: none; border: solid #666666 1.0pt; mso-background-themecolor: background2; mso-background-themeshade: 230; mso-border-alt: solid #666666 .5pt; mso-border-top-alt: solid #666666 .5pt; padding: 4.0pt 4.0pt 4.0pt 4.0pt; width: 166.0pt;" width="332"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<b><span style="color: #333333; font-family: "garamond" , "serif"; font-size: 12.0pt;">Sources of payment<o:p></o:p></span></b></div>
</td>
<td style="border-bottom: solid #666666 1.0pt; border-left: none; border-right: solid #666666 1.0pt; border-top: none; mso-border-alt: solid #666666 .5pt; mso-border-left-alt: solid #666666 .5pt; mso-border-top-alt: solid #666666 .5pt; padding: 4.0pt 4.0pt 4.0pt 4.0pt; width: 261.0pt;" width="522"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="color: #333333; font-family: "garamond" , "serif"; font-size: 12.0pt;">The revenues generated by the underlying asset<o:p></o:p></span></div>
</td>
<td style="border-bottom: solid #666666 1.0pt; border-left: none; border-right: solid #666666 1.0pt; border-top: none; mso-border-alt: solid #666666 .5pt; mso-border-left-alt: solid #666666 .5pt; mso-border-top-alt: solid #666666 .5pt; padding: 4.0pt 4.0pt 4.0pt 4.0pt; width: 229.0pt;" width="458"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="color: #333333; font-family: "garamond" , "serif"; font-size: 12.0pt;">The originator/obligor's cash flows<o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="background: #DDD9C3; border-top: none; border: solid #666666 1.0pt; mso-background-themecolor: background2; mso-background-themeshade: 230; mso-border-alt: solid #666666 .5pt; mso-border-top-alt: solid #666666 .5pt; padding: 4.0pt 4.0pt 4.0pt 4.0pt; width: 166.0pt;" width="332"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<b><span style="color: #333333; font-family: "garamond" , "serif"; font-size: 12.0pt;">Sukuk holder's ownership<o:p></o:p></span></b></div>
</td>
<td style="border-bottom: solid #666666 1.0pt; border-left: none; border-right: solid #666666 1.0pt; border-top: none; mso-border-alt: solid #666666 .5pt; mso-border-left-alt: solid #666666 .5pt; mso-border-top-alt: solid #666666 .5pt; padding: 4.0pt 4.0pt 4.0pt 4.0pt; width: 261.0pt;" width="522"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="color: #333333; font-family: "garamond" , "serif"; font-size: 12.0pt;">Legal ownership with right to dispose of underlying assets<o:p></o:p></span></div>
</td>
<td style="border-bottom: solid #666666 1.0pt; border-left: none; border-right: solid #666666 1.0pt; border-top: none; mso-border-alt: solid #666666 .5pt; mso-border-left-alt: solid #666666 .5pt; mso-border-top-alt: solid #666666 .5pt; padding: 4.0pt 4.0pt 4.0pt 4.0pt; width: 229.0pt;" width="458"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="color: #333333; font-family: "garamond" , "serif"; font-size: 12.0pt;">Beneficial ownership with no right to dispose of underlying
assets<o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="background: #DDD9C3; border-top: none; border: solid #666666 1.0pt; mso-background-themecolor: background2; mso-background-themeshade: 230; mso-border-alt: solid #666666 .5pt; mso-border-top-alt: solid #666666 .5pt; padding: 4.0pt 4.0pt 4.0pt 4.0pt; width: 166.0pt;" width="332"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<b><span style="color: #333333; font-family: "garamond" , "serif"; font-size: 12.0pt;">Recourse<o:p></o:p></span></b></div>
</td>
<td style="border-bottom: solid #666666 1.0pt; border-left: none; border-right: solid #666666 1.0pt; border-top: none; mso-border-alt: solid #666666 .5pt; mso-border-left-alt: solid #666666 .5pt; mso-border-top-alt: solid #666666 .5pt; padding: 4.0pt 4.0pt 4.0pt 4.0pt; width: 261.0pt;" width="522"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="color: #333333; font-family: "garamond" , "serif"; font-size: 12.0pt;">Sukuk holders cannot recourse to the originator (recourse only
to underlying assets)<o:p></o:p></span></div>
</td>
<td style="border-bottom: solid #666666 1.0pt; border-left: none; border-right: solid #666666 1.0pt; border-top: none; mso-border-alt: solid #666666 .5pt; mso-border-left-alt: solid #666666 .5pt; mso-border-top-alt: solid #666666 .5pt; padding: 4.0pt 4.0pt 4.0pt 4.0pt; width: 229.0pt;" width="458"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="color: #333333; font-family: "garamond" , "serif"; font-size: 12.0pt;">Sukuk holders can recourse to obligor (originator) if there is
a shortfall in payments<o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="background: #DDD9C3; border-top: none; border: solid #666666 1.0pt; mso-background-themecolor: background2; mso-background-themeshade: 230; mso-border-alt: solid #666666 .5pt; mso-border-top-alt: solid #666666 .5pt; padding: 4.0pt 4.0pt 4.0pt 4.0pt; width: 166.0pt;" width="332"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<b><span style="color: #333333; font-family: "garamond" , "serif"; font-size: 12.0pt;">Shari'ah nomination<o:p></o:p></span></b></div>
</td>
<td style="border-bottom: solid #666666 1.0pt; border-left: none; border-right: solid #666666 1.0pt; border-top: none; mso-border-alt: solid #666666 .5pt; mso-border-left-alt: solid #666666 .5pt; mso-border-top-alt: solid #666666 .5pt; padding: 4.0pt 4.0pt 4.0pt 4.0pt; width: 261.0pt;" width="522"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="color: #333333; font-family: "garamond" , "serif"; font-size: 12.0pt;">Because of its equity-like nature, this structure is
considered Shari'ah compliant<o:p></o:p></span></div>
</td>
<td style="border-bottom: solid #666666 1.0pt; border-left: none; border-right: solid #666666 1.0pt; border-top: none; mso-border-alt: solid #666666 .5pt; mso-border-left-alt: solid #666666 .5pt; mso-border-top-alt: solid #666666 .5pt; padding: 4.0pt 4.0pt 4.0pt 4.0pt; width: 229.0pt;" width="458"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="font-family: "garamond" , "serif"; font-size: 12.0pt;">This
structure involves both <i>Tawarruq </i>and </span><span style="font-family: "garamond" , "serif";"><a href="http://investment-and-finance.net/islamic-finance/b/bai-al-inah.html"><span style="color: windowtext; font-size: 12.0pt; mso-bidi-font-family: Tahoma; mso-fareast-font-family: "Times New Roman"; text-decoration: none; text-underline: none;">ba'i
al-inah</span></a></span><span style="font-family: "garamond" , "serif"; font-size: 12.0pt;">.
Hence, it is not compatible with Shari'ah<o:p></o:p></span></div>
</td>
</tr>
</tbody></table>
<span style="font-size: 10.0pt; mso-bidi-font-family: "Lucida Sans Unicode"; mso-fareast-font-family: "Times New Roman";">
</span><br />
<div class="MsoNormal">
<br /></div>
</div>
Mohd. Ma'sum Billahhttp://www.blogger.com/profile/14029507777590329011noreply@blogger.com0tag:blogger.com,1999:blog-7101557101807536516.post-76468176154218576182017-01-26T13:26:00.001-08:002017-01-26T13:26:25.939-08:00Istisna' vs Salam Contract<div class="MsoNormal" style="line-height: normal; margin-bottom: 5.0pt; mso-margin-top-alt: auto; mso-outline-level: 1;">
<span style="color: #4bacc6; font-family: "Elephant","serif"; font-size: 28.0pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-font-kerning: 18.0pt; mso-themecolor: accent5;">Istisna’ vs. Salam<o:p></o:p></span></div>
<div align="center" class="MsoNormal" style="line-height: normal; margin-top: 10.0pt; text-align: center;">
<span style="color: #4c4c4c; font-family: "Helvetica","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">
<hr align="center" noshade="" size="0" width="100%" />
</span></div>
<table border="1" cellpadding="0" cellspacing="0" class="MsoTableGrid" style="border-collapse: collapse; border: none; mso-border-alt: solid black .5pt; mso-border-themecolor: text1; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-yfti-tbllook: 1184;">
<tbody>
<tr>
<td style="background: #9BBB59; border: solid black 1.0pt; mso-background-themecolor: accent3; mso-border-alt: solid black .5pt; mso-border-themecolor: text1; mso-border-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 239.4pt;" valign="top" width="479">
<div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: center;">
<b><span style="color: #002060; font-family: "Tahoma","sans-serif"; font-size: 16.0pt;"> Istisna’ (manufacturing contract)<o:p></o:p></span></b></div>
</td>
<td style="background: #9BBB59; border-left: none; border: solid black 1.0pt; mso-background-themecolor: accent3; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-themecolor: text1; mso-border-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 239.4pt;" valign="top" width="479">
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; tab-stops: 12.5pt center 114.3pt;">
<b><span style="color: #002060; font-family: "Tahoma","sans-serif"; font-size: 16.0pt;"> Salam (sale by deferred payment)<o:p></o:p></span></b></div>
</td>
</tr>
<tr>
<td style="border-top: none; border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 239.4pt;" valign="top" width="479">
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="font-size: 12.0pt;"><span style="color: orange;">An Istina’ Contract is a Contract of
Service / Manufacturing / Development
as per agreed terms<o:p></o:p></span></span></div>
</td>
<td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 239.4pt;" valign="top" width="479">
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="font-size: 12.0pt;"><span style="color: orange;">A Salam Contract is a Sale of product
/ asset / commodity by deferred delivery as per agreed terms<o:p></o:p></span></span></div>
</td>
</tr>
<tr>
<td style="border-top: none; border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 239.4pt;" valign="top" width="479">
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="font-size: 12.0pt;"><span style="color: orange;">In an Istisna’ Contract the required
service / manufacturing / development is the subject matter of the contract<o:p></o:p></span></span></div>
</td>
<td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 239.4pt;" valign="top" width="479">
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="font-size: 12.0pt;"><span style="color: orange;">In a Salaam Contract the underlying asset / commodity /
product is the subject matter of the contract<o:p></o:p></span></span></div>
</td>
</tr>
<tr>
<td style="border-top: none; border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 239.4pt;" valign="top" width="479">
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="color: orange;"><span style="font-size: 12pt;">The subject of Istisna is
always a thing which needs manufacturing, </span><span style="font-size: 12.0pt;"><o:p></o:p></span></span></div>
</td>
<td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 239.4pt;" valign="top" width="479">
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="color: orange;"><span style="font-size: 12pt;">The subject of Salam can be
effected on anything, no matter whether it needs manufacturing or not</span><span style="font-size: 12.0pt;"><o:p></o:p></span></span></div>
</td>
</tr>
<tr>
<td style="border-top: none; border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 239.4pt;" valign="top" width="479">
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="color: orange;"><span style="font-size: 12pt;">It is not necessary in Istisna’
that the price is paid in full in advance</span><span style="font-size: 12.0pt;"><o:p></o:p></span></span></div>
</td>
<td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 239.4pt;" valign="top" width="479">
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="color: orange;"><span style="font-size: 12pt;">It is necessary for Salam that
the price is paid in full in advance</span><span style="font-size: 12.0pt;"><o:p></o:p></span></span></div>
</td>
</tr>
<tr>
<td style="border-top: none; border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 239.4pt;" valign="top" width="479">
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="color: orange;"><span style="font-size: 12pt;">The contract of Istisna can be
cancelled / revoked before the manufacturer starts the work.</span><span style="font-size: 12.0pt;"><o:p></o:p></span></span></div>
</td>
<td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 239.4pt;" valign="top" width="479">
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="color: orange;"><span style="font-size: 12pt;">The contract of salam, once
effected, cannot be cancelled / revoked unilaterally</span><span style="font-size: 12.0pt;"><o:p></o:p></span></span></div>
</td>
</tr>
<tr>
<td style="border-top: none; border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 239.4pt;" valign="top" width="479">
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="color: orange;"><span style="font-size: 12pt;">The time of delivery is not
essential part to be fixed In Istisna’ contract</span><span style="font-size: 12.0pt;"><o:p></o:p></span></span></div>
</td>
<td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 239.4pt;" valign="top" width="479">
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="font-size: 12pt;"><span style="color: orange;">The time of delivery is an
essential part of the sale in Salam </span></span><span style="font-size: 12.0pt;"><o:p></o:p></span></div>
</td>
</tr>
</tbody></table>
<br />
<div class="MsoNormal">
<br /></div>
Mohd. Ma'sum Billahhttp://www.blogger.com/profile/14029507777590329011noreply@blogger.com0tag:blogger.com,1999:blog-7101557101807536516.post-83891085482084471312015-12-30T11:10:00.001-08:002015-12-31T22:51:51.397-08:00Tips for a Sustainable Growth of Sukuk as an alternative to the ongoing debt-based economy of the globe<!--[if gte mso 9]><xml>
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<br />
<div class="MsoNormal" dir="LTR" style="line-height: normal; text-align: justify;">
<span style="font-family: "Gisha","sans-serif"; font-size: 12.0pt;">An effective reform
is needed to subrogate the debt-based economy, which deploys a threat to the
world economy thus, an alternative sustainable way out is the SUKUK thus, the
prospective Basel IV may also prepare to address the issue harmonizing with the
spirit of SUKUK to rescue the world economy ahead. To uphold the above concern,
the following Tips affecting <b>SUKUK</b> are emerged to be in reality:</span></div>
<div class="MsoNormal" dir="LTR" style="line-height: normal; text-align: justify;">
<br /></div>
<div class="MsoListParagraphCxSpFirst" dir="LTR" style="line-height: normal; mso-list: l0 level1 lfo1; text-align: justify; text-indent: -.25in;">
<span style="font-family: "Gisha","sans-serif"; mso-fareast-font-family: Gisha;"><span style="mso-list: Ignore;">1.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="font-family: "Gisha","sans-serif";">Comprehensive <b>Regulatory</b> Frameworks to facilitate
a result oriented <i>Sukuk</i> operation. The frameworks include <i>Fatawa</i>, Law,
Policies, Guidelines & Standard, which shall be in total compliance with
the <i>Shari'ah</i>.</span></div>
<div class="MsoListParagraphCxSpFirst" dir="LTR" style="line-height: normal; mso-list: l0 level1 lfo1; text-align: justify; text-indent: -.25in;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" dir="LTR" style="line-height: normal; mso-list: l0 level1 lfo1; text-align: justify; text-indent: -.25in;">
<span style="font-family: "Gisha","sans-serif"; mso-fareast-font-family: Gisha;"><span style="mso-list: Ignore;">2.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span dir="LTR"></span><span style="font-family: "Gisha","sans-serif";"><span style="mso-spacerun: yes;"> </span><b>Standardization</b>
Board to be established by comprising of highly qualified (skills &
experience in <i>Shari'ah</i>-finance-commerce) selected members from different
jurisdictions and schools of Islamic jurisprudence.</span></div>
<div class="MsoListParagraphCxSpMiddle" dir="LTR" style="line-height: normal; mso-list: l0 level1 lfo1; text-align: justify; text-indent: -.25in;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" dir="LTR" style="line-height: normal; mso-list: l0 level1 lfo1; text-align: justify; text-indent: -.25in;">
<span style="font-family: "Gisha","sans-serif"; mso-fareast-font-family: Gisha;"><span style="mso-list: Ignore;">3.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span dir="LTR"></span><b><span style="font-family: "Gisha","sans-serif";">Reformation</span></b><span style="font-family: "Gisha","sans-serif";">
of <i>Shari'ah </i>scholars' views in view of standardization of <i>Sukuk </i>structures
& instruments and operational mechanisms. </span><br />
<span style="font-family: "Gisha","sans-serif";"><br /></span>
<span style="font-family: "Gisha","sans-serif";">4. Increasing the culture, scope and volume of the <b>issuance of </b><i><b>Sukuk</b> </i>by both the corporate and the government namely; corporate <i>sukuk,</i> sovereign <i>sukuk</i> and cooperative micro-<i>sukuk, </i>which may vibrate the economy both at the national and also the global levels. This may eventually strengthen the economic backbone against the debt-based experience. </span></div>
<div class="MsoListParagraphCxSpMiddle" dir="LTR" style="line-height: normal; mso-list: l0 level1 lfo1; text-align: justify; text-indent: -.25in;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" dir="LTR" style="line-height: normal; mso-list: l0 level1 lfo1; text-align: justify; text-indent: -.25in;">
<span style="font-family: "Gisha","sans-serif"; mso-fareast-font-family: Gisha;"><span style="mso-list: Ignore;">5.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span dir="LTR"></span><span style="font-family: "Gisha","sans-serif";">Specialized Empirical <b>Research</b> (analysis, case
studies, solutions, modeling and recommendations) shall be carried out as a
continuous development plan in view of benefiting both the market players and
participants with unique products and services.</span></div>
<div class="MsoListParagraphCxSpMiddle" dir="LTR" style="line-height: normal; mso-list: l0 level1 lfo1; text-align: justify; text-indent: -.25in;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" dir="LTR" style="line-height: normal; mso-list: l0 level1 lfo1; text-align: justify; text-indent: -.25in;">
<span style="font-family: "Gisha","sans-serif"; mso-fareast-font-family: Gisha;"><span style="mso-list: Ignore;">6.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="font-family: "Gisha","sans-serif";">Professional Development or Human capital development (<b>HCD)
</b>in niche issues of <i>Sukuk</i> shall be continued with an effective
outcome.<span style="mso-spacerun: yes;"> </span>A specialized-training unit may take a
lead to focus on the Professional Development in <i>Sukuk</i> (PDS). </span></div>
<div class="MsoListParagraphCxSpMiddle" dir="LTR" style="line-height: normal; mso-list: l0 level1 lfo1; text-align: justify; text-indent: -.25in;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" dir="LTR" style="line-height: normal; mso-list: l0 level1 lfo1; text-align: justify; text-indent: -.25in;">
<span style="font-family: "Gisha","sans-serif"; mso-fareast-font-family: Gisha;"><span style="mso-list: Ignore;">7.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span dir="LTR"></span><span style="font-family: "Gisha","sans-serif";">Global Awareness by <b>2 day </b>annual <b>Convention </b>on
difference niche issues of <i>Sukuk,</i> to be held in different zones of the
globe.</span></div>
<div class="MsoListParagraphCxSpMiddle" dir="LTR" style="line-height: normal; mso-list: l0 level1 lfo1; text-align: justify; text-indent: -.25in;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" dir="LTR" style="line-height: normal; mso-list: l0 level1 lfo1; text-align: justify; text-indent: -.25in;">
<span style="font-family: "Gisha","sans-serif"; mso-fareast-font-family: Gisha;"><span style="mso-list: Ignore;">8.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span dir="LTR"></span><span style="font-family: "Gisha","sans-serif";">A biannually <b>Debate</b> on different aspects of <i>Sukuk</i>
shall be organized by comprising the diverse teams namely; Zone vs Zone,
Scholars vs Practitioners, Instruments vs Instruments, Mechanisms vs
Mechanisms, Law vs Law and so on. <span style="mso-spacerun: yes;"> </span></span></div>
<div class="MsoListParagraphCxSpMiddle" dir="LTR" style="line-height: normal; mso-list: l0 level1 lfo1; text-align: justify; text-indent: -.25in;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" dir="LTR" style="line-height: normal; mso-list: l0 level1 lfo1; text-align: justify; text-indent: -.25in;">
<span style="font-family: "Gisha","sans-serif"; mso-fareast-font-family: Gisha;"><span style="mso-list: Ignore;">9.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span dir="LTR"></span><span style="font-family: "Gisha","sans-serif";">An exclusive specialized <span style="mso-spacerun: yes;"> </span><b>publication </b>on <i>Sukuk</i> is required
to be established, which includes, quarterly Journal, monthly bulletin and
proceeding. </span></div>
<div class="MsoListParagraphCxSpMiddle" dir="LTR" style="line-height: normal; mso-list: l0 level1 lfo1; text-align: justify; text-indent: -.25in;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" dir="LTR" style="line-height: normal; mso-list: l0 level1 lfo1; text-align: justify; text-indent: -.25in;">
<span style="font-family: "Gisha","sans-serif"; mso-fareast-font-family: Gisha;"><span style="mso-list: Ignore;">10.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span dir="LTR"></span><span style="font-family: "Gisha","sans-serif";"><span style="mso-spacerun: yes;"> </span>An <b>annual
Report</b> on <i>Sukuk</i> global shall be produced in view of maturing the
policy makers, decision makers, developers, market forces, operators and
participants.</span></div>
<div class="MsoListParagraphCxSpMiddle" dir="LTR" style="line-height: normal; mso-list: l0 level1 lfo1; text-align: justify; text-indent: -.25in;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" dir="LTR" style="line-height: normal; mso-list: l0 level1 lfo1; text-align: justify; text-indent: -.25in;">
<span style="font-family: "Gisha","sans-serif"; mso-fareast-font-family: Gisha;"><span style="mso-list: Ignore;">11.<span style="font: 7.0pt "Times New Roman";"> </span></span></span><span style="font-family: "Gisha","sans-serif";">Weekly <b>Talk-show</b>
on specialized issues of <i>Sukuk</i> to be managed through TV<span style="mso-spacerun: yes;"> </span>& Radio, which shall eventually be
published through social media like You tube. </span></div>
<div class="MsoListParagraphCxSpMiddle" dir="LTR" style="line-height: normal; mso-list: l0 level1 lfo1; text-align: justify; text-indent: -.25in;">
<br /></div>
<div class="MsoListParagraphCxSpLast" dir="LTR" style="line-height: normal; mso-list: l0 level1 lfo1; text-align: justify; text-indent: -.25in;">
<span style="font-family: "Gisha","sans-serif"; mso-fareast-font-family: Gisha;"><span style="mso-list: Ignore;">12.<span style="font: 7.0pt "Times New Roman";"> </span></span></span><span style="font-family: "Gisha","sans-serif";">Establishment of a <b>'Global Sukuk Arbitration Center'</b> perhaps under the OIC chamber of
Commerce aiming at dispute settlement within the <i>Shari'ah</i> spirit arising
out of <i>Sukuk</i> in any jurisdiction of the world should one be not contrary
to the concerned local jurisdiction.<i><span style="mso-spacerun: yes;">
</span><span style="mso-spacerun: yes;"> </span></i></span></div>
<div class="MsoNormal" dir="LTR">
<br /></div>
Mohd. Ma'sum Billahhttp://www.blogger.com/profile/14029507777590329011noreply@blogger.com0tag:blogger.com,1999:blog-7101557101807536516.post-4588662709090920002015-07-30T22:12:00.000-07:002015-07-30T22:12:01.965-07:00Possibilities of Shari'ah Banking Regulatory initiative in the West & the Pacific
<span style="font-family: Calibri;">Shari'ah banking is neither a mere religious issue nor
applicable to Muslim only with limited scope, but is an applied subject with universal
character for the benefit of all mankind regardless of one's religion, status,
gender, race or nationality. Thus, Shari'ah banking is applicable with
beneficial results to every mankind on earth with no exception in general.</span><br />
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: Calibri;">The<span style="mso-spacerun: yes;"> </span>issue of Shari'ah banking
regulations & application in the USA, Europe, China or any other non-Muslim
state of sovereignty, the following suggestions are made:</span></div>
<span style="font-family: Calibri;">1. An analysis / research shall be carried out on the
relevant Article (s) of the Constitution, customs, peoples' perceptions, the
government's interest, business prospects & the market phenomena of the
respective concerned country, aiming at possible discovery of the
implementation of Islamic banking.</span><br />
<span style="font-family: Calibri;"></span><br />
<span style="font-family: Calibri;">2. Establishing standard regulatory frameworks (Laws,
guidelines, policies, standards & manuals) by complying the Shari'ah
principles & standard in harmonizing the concerned country's policy &
tradition (through the necessary adaptation of the rules of "Masalih
al-Mursalah (public interest)".</span><br />
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: Calibri;">3. Continuing with Public awareness programs through media,
training, seminars & other forms of human capital development schemes.</span></div>
<span style="font-family: Calibri;">4. Continuing with research in products, policies, standard,
system, technicalities, mechanisms, market & dynamic corporate culture by
referring to the global standard and practices (subject to the Shari'ah
compliance).</span><br />
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: Calibri;">5. Establishment & Operation of the system for the
benefit of all within the Halal / Shari'ah spirit.</span></div>
<span style="font-family: Calibri;">6. Enrichment of the continuing communication with &
cooperation from the government / policy makers of the concerned jurisdiction. </span><br />
Mohd. Ma'sum Billahhttp://www.blogger.com/profile/14029507777590329011noreply@blogger.com0tag:blogger.com,1999:blog-7101557101807536516.post-62721664779935919242015-07-03T20:17:00.002-07:002015-08-01T05:15:13.114-07:00Reality of 'Islamic Finance' today 2015<br />
<span style="-webkit-text-stroke-width: 0px; background-color: #f1f3f5; color: #333333; display: inline !important; float: none; font-size-adjust: none; font-stretch: normal; font: 13px/16px Arial, sans-serif; letter-spacing: normal; text-align: left; text-indent: 0px; text-transform: none; white-space: normal; widows: 1; word-spacing: 0px;">
<br />
<div style="text-align: justify;">
Islamic finance is in "no usury" thus,
it's either based on profit or loss (risk) sharing techniques (in case of
equity participation) or based on service charge (in case of debt financing).
In other word, Islamic finance evolves with risk sharing deal while rejecting
risk transferring deal in view of gaining at the expense of others. <o:p></o:p></div>
<br />
<div style="text-align: justify;">
<span style="color: black;">Hence, Islamic finance
is not merely a product with commercial motive only, but an integrated system
for all humanity based on holistic approach of sharing, caring & concern
within the spirit of brotherhood and that, may lead to a better &
sustainable way to world peace in today's reality.</span> </div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt; text-align: justify;">
<o:p> </o:p></div>
</span>Mohd. Ma'sum Billahhttp://www.blogger.com/profile/14029507777590329011noreply@blogger.com0tag:blogger.com,1999:blog-7101557101807536516.post-69293361816152935012014-10-29T17:14:00.001-07:002014-10-29T17:14:25.427-07:00Update on Global Halal Industries<br />
The demand for Halal consumable items is gaining momentum. The Halal industry currently stands at around $1.6 trillion and expected to grow by $3 trillion in 2018. Muslim consumers spent $1.08 trillion on food alone. <br />
<br />
This consumption is about 16.6% of the global expenditure, which is expected to grow $1.6 trillion market. <br />
<br />
Similarly Muslim global travel expenditure in 2014 is expected to be $140 billion and is 12.5% of the global expenditure. <br />
<br />
This industry is expected to grow to $200 billion by 2020 and is the larger than the tourism market of the United States. (source:Al Maali Consulting Group, Dubai). Mohd. Ma'sum Billahhttp://www.blogger.com/profile/14029507777590329011noreply@blogger.com0tag:blogger.com,1999:blog-7101557101807536516.post-83940030340318015462014-09-06T02:11:00.000-07:002014-09-06T02:11:05.095-07:00Islamic Life Insurance (Family Takaful)
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<strong><span style="color: #38761d;"><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">Shar</span><span lang="EN-US">ī</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">’ah</span></i></span></strong><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><strong><span style="color: #38761d;"> model of Life
Insurance (Family Takaful)</span></strong> does not mean to insure one</span><span dir="RTL"></span><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">s life, but it is a
financial transaction undertaking to protect widows, orphans and other
dependents of the deceased (assured) against future unexpected financial
risk.<span style="mso-spacerun: yes;"> </span>The conventional system, however,
offers a life insurance policy, which may not be free from <i>rib</i></span><i><span lang="EN-US">ā</span></i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">
(interest), or some other elements, which are not recognized by Islamic
teaching.<span style="mso-spacerun: yes;"> </span></span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><span style="mso-spacerun: yes;"></span></span> </div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><span style="mso-spacerun: yes;"></span>Based on the observation of
the practices of life insurance policies under the conventional system many
Muslims, and even some Islamic scholars, diametrically oppose the idea of life
policies, but have not come up with an Islamic alternative model to the
conventional one which would meet the expectations of contemporary Muslims and
would protect widows, orphans and other dependents in society from unpredicted
future financial risk.<span style="mso-spacerun: yes;"> </span></span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"></span> </div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">Hence, the
central idea of the model of an Islamic life insurance is that, it is not a
policy to insure one</span><span dir="RTL"></span><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">s own life, but is a
financial transaction relying on the principles of mutual cooperation to
undertake a responsibility towards safeguarding widows, orphans and other
dependents of the deceased (assured), from future financial risk, which does
not involve the elements of </span><span dir="RTL"></span><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>‘</span><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">Rib</span><span lang="EN-US">ā</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">’
</span></i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">but
is operated along the lines of the following principles of the </span><span dir="RTL"></span><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>‘</span><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">al-Mudh</span><span lang="EN-US">ā</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">rabah</span></i><span dir="RTL"></span><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span><span dir="LTR"></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><span dir="LTR"></span> financial technique, while neither
clashing with the principles of ‘<i>M</i></span><i><span lang="EN-US">ī</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">rath</span></i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">’ nor with the
principles of </span><span dir="RTL"></span><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>‘</span><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">Wasiyah</span></i><span dir="RTL"></span><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span><span dir="LTR"></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><span dir="LTR"></span>.</span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"></span> </div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"> In an Islamic model of life
insurance policy the nominee(s) is not an absolute beneficiary(s) but a mere
trustee<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn1" name="_ftnref1" style="mso-footnote-id: ftn1;" title=""><span class="MsoFootnoteReference"><span style="font-family: "Times New Roman","serif"; mso-bidi-font-family: "Traditional Arabic";"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[1]</span></span></span><!--[endif]--></span></span></span></a>
who is under a duty to obtain benefits over the policy and distribute them
among the heirs of the deceased (assured), according to the principles of ‘<i>M</i></span><i><span lang="EN-US">ī</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">rath’</span></i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"> and ‘<i>Wasiyyah</i>’.<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn2" name="_ftnref2" style="mso-footnote-id: ftn2;" title=""><span class="MsoFootnoteReference"><span style="font-family: "Times New Roman","serif"; mso-bidi-font-family: "Traditional Arabic";"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[2]</span></span></span><!--[endif]--></span></span></span></a><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><o:p> </o:p></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">This article
attempts to come up with a solution to the operation of an Islamic model of
life insurance policy in contemporary Muslim societies, refuting the
misconceptions that some Muslims have placed against the validity of a life
insurance policy.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<strong><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><o:p> </o:p></span><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 11pt; font-style: normal;">ADDRESSING
THE PROBLEM<o:p></o:p></span></strong></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">Central Idea of
Life Insurance under the Islamic discipline is quite different from the one,
which is practiced under the conventional system.<span style="mso-spacerun: yes;"> </span>A Islamic model of a life insurance policy,
however, is a financial transaction based on the principle of the ‘<i>al-Mudh</i></span><i><span lang="EN-US">ā</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">rabah’</span></i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"> financing
technique relying on the principle of mutual cooperation, undertaking a
responsibility towards safeguarding widows, orphans and other dependents of the
deceased (assured/policy holder) from an unexpected future material risk.<span style="mso-spacerun: yes;"> </span>The nominee(s) in the life insurance policy
who is appointed by the assured, is not an absolute beneficiary(s) over the
policy but a mere trustee who receives the benefits and distribute them among
the heirs of the deceased (assured) according to the principles of ‘<i>M</i></span><i><span lang="EN-US">ī</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">rath’
</span></i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">(inheritance)
and ‘<i>Wasiyyah</i>’ (bequest).<span style="mso-spacerun: yes;"> </span></span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><span style="mso-spacerun: yes;"></span></span> </div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><span style="mso-spacerun: yes;"></span>Where
the assured is still alive upon the maturity of the policy period, he has the
right to claim from the insurer the paid-premiums, the share of profits made
over the paid premiums, plus bonus and dividends according to the company
policy.<span style="mso-spacerun: yes;"> </span>But if the assured dies at any
time before the maturity of the policy, the claim of the nominee(s) includes
the paid-premiums, the share of profits made over the paid-premiums, bonus and
dividends according to the company</span><span dir="RTL"></span><span dir="RTL" lang="AR-SA"><span dir="RTL"></span>’</span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">s policy plus a donation from the company</span><span dir="RTL"></span><span dir="RTL" lang="AR-SA"><span dir="RTL"></span>’</span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">s charitable fund
according to the financial condition of the beneficiary(s) of the assured.<span style="mso-spacerun: yes;"> </span></span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><span style="mso-spacerun: yes;"></span></span> </div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">As for the claim for benefits over a life
insurance policy, the death of the assured does not necessarily have to be
natural or accidental but any cause of the death (even an unlawful death like
suicide or being killed in the act of a crime etc.), counts so long as the
death of the assured is proved.<span style="mso-spacerun: yes;"> </span>This is
because the death of the is determined by <i>All</i></span><i><span lang="EN-US">ā</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">h (SWT)</span></i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"> as is stated in
the holy <i>Qur’an</i>:<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 36.55pt 0pt 42.55pt;">
<span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;"><span dir="RTL"></span>“</span></i><i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";">No soul can die except by the
permission of Allah (SWT), the term being fixed (by Allah SWT)</span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;"><span dir="RTL"></span>…</span></i><span dir="LTR"></span><i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";"><span dir="LTR"></span>.<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn3" name="_ftnref3" style="mso-footnote-id: ftn3;" title=""><span class="MsoFootnoteReference"><span style="font-family: "Times New Roman","serif"; mso-bidi-font-family: "Traditional Arabic";"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 11pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[3]</span></span></b></span><!--[endif]--></span></span></span></a></span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;"><span dir="RTL"></span>”</span></i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";"><o:p></o:p></span></div>
<br />
<div align="center" class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: center;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">Moreover, as
regards the act of suicide or any other crimes, the doer himself/herself is
solely accountable to Allah (<i>SWT</i>) for his/her own act.<span style="mso-spacerun: yes;"> </span>As Allah (<i>SWT</i>) ruled in the holy <i>Qur’an</i>:
<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><o:p> </o:p></span><i><span dir="RTL" lang="EN-US" style="font-size: 11pt; mso-ansi-language: EN-GB;"><span style="mso-spacerun: yes;"> </span></span></i><i><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;">“</span></i><span dir="LTR"></span><i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";"><span dir="LTR"></span>…They shall reap the fruit of what they
did, and you what you do…”<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn4" name="_ftnref4" style="mso-footnote-id: ftn4;" title=""><span class="MsoFootnoteReference"><span style="font-family: "Times New Roman","serif"; mso-bidi-font-family: "Traditional Arabic";"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 11pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[4]</span></span></b></span><!--[endif]--></span></span></span></a><o:p></o:p></span></i></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><o:p> </o:p></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">Thus, it does not
mean that a criminal will simultaneously be accountable for his/her own
wrongful act and also be depriving from other rights.<span style="mso-spacerun: yes;"> </span>It is a fundamental right of everyone in
society to enjoy in business and other matters that which they may require
lawfully.<span style="mso-spacerun: yes;"> </span>Such personal rights should be
exercised by every equally regardless of whether one is innocent or a criminal
as long as the rights within the lawful sphere.<span style="mso-spacerun: yes;">
</span>Hence, life insurance policy is a transaction whereby the assured</span><span dir="RTL"></span><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">s
beneficiary(s) should not be deprived due to the assured</span><span dir="RTL"></span><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">s criminal act
(i.e. act of suicide, or being killed for a wrongful act etc.).<span style="mso-spacerun: yes;"> </span>The agent in a life insurance policy is not
supposed to be paid his salary out of the assured</span><span dir="RTL"></span><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">s premiums because
they work for </span><span dir="RTL"></span><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>“</span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">The Company</span><span dir="RTL"></span><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>”</span><span dir="LTR"></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><span dir="LTR"></span> and thus should be paid by </span><span dir="RTL"></span><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>“</span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">The
Company</span><span dir="RTL"></span><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>”</span><span dir="LTR"></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><span dir="LTR"></span>.<span style="mso-spacerun: yes;"> </span>For example since a life insurance policy is
based on the principle of ‘<i>al-Mudh</i></span><i><span lang="EN-US">ā</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">rabah</span></i><span dir="RTL"></span><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span><span dir="LTR"></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><span dir="LTR"></span>, whereby the involved parties i.e.
insurer, assured, agents share the profit over the business which is partly run
by the assured</span><span dir="RTL"></span><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">s paid-premiums, therefore,
the interest for the agent in a life insurance policy is a share of profits
made over the assured</span><span dir="RTL"></span><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">s paid premiums plus dividend
and bonus according to the company</span><span dir="RTL"></span><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">s policy.<span style="mso-spacerun: yes;"> </span>As regards to the insurable interest in a
life policy under the Islamic model, the policyholder himself has an insurable
interest if he is alive upon the expiry of the policy period.<span style="mso-spacerun: yes;"> </span>If the assured dies at any time within the
policy period, the insurable interest is to be vested only in the heirs of the
assured according to the principles of ‘<i>M</i></span><i><span lang="EN-US">ī</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">rath</span></i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">’ and ‘<i>Wasiyyah</i>.’<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<b><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><o:p> </o:p></span></b><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 11pt; font-style: normal;">LIFE
INSURANCE & ITS RATIONAL OUTLOOK<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><o:p> </o:p></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">Having an Islamic
life insurance policy does not mean that one has insured one’s own life, but it
is a fair financial transaction catering for the benefits of certain helpless
people in the society.<span style="mso-spacerun: yes;"> </span>The rationale
behind of having a <i>Shar</i></span><i><span lang="EN-US">ī</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">’ah</span></i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"> justified life
insurance policy could be summed up as follows:<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><o:p> </o:p></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">1)<span style="mso-tab-count: 1;"> </span>It is one of the means of providing a
material safeguard for offspring and is thus in line with the saying of the
holy prophet <i>SAW</i>.<span style="mso-spacerun: yes;"> </span>He (<i>SAW</i>)
spoke to this effect:<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 18.45pt 0pt 26.05pt; text-align: justify;">
<span dir="RTL"></span><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; font-size: 11pt; mso-ansi-language: EN-GB; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="RTL"></span>“</span><i><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;">…</span></i><span dir="LTR"></span><i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";"><span dir="LTR"></span> it is better for you to leave you
off-spring wealthy than to leave them poor, asking others for help</span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;"><span dir="RTL"></span>…”</span></i><span dir="LTR"></span><i><span lang="AR-SA" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";"><span dir="LTR"></span> </span></i><i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";">[Narrated by Saad b. Abi Waqqas
(r.a)]<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn5" name="_ftnref5" style="mso-footnote-id: ftn5;" title=""><span class="MsoFootnoteReference"><span style="font-family: "Times New Roman","serif"; mso-bidi-font-family: "Traditional Arabic";"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 11pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[5]</span></span></b></span><!--[endif]--></span></span></span></a></span></i><i><span style="font-size: 11pt; mso-ansi-language: EN-GB; mso-bidi-font-family: "Traditional Arabic";"><o:p></o:p></span></i></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; tab-stops: 40.85pt 426.1pt;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">2)<span style="mso-tab-count: 1;"> </span>Having a life
insurance policy is a future material security for widows and other dependents
of the deceased (assured).<span style="mso-spacerun: yes;"> </span>The <i>Holy
Prophet (SAW)</i> in fact encouraged the providing of security for the widows
and poor persons as he highlighted in one of <i>his </i>traditions:<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><o:p> </o:p></span><i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";">"The
one who looks after and works for a widow and for a poor person (dependent), is
like a warrior fighting for The Cause of Allah</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"> (SWT), </span></i><i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";">or
like a person who fasts during the day and prays throughout the night. “
[Narrated by Safwan bin Salim ( r.a)].</span></i><a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn6" name="_ftnref6" style="mso-footnote-id: ftn6;" title=""><span class="MsoFootnoteReference"><i><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 11pt; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-font-size: 12.0pt;"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 11pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-font-size: 12.0pt; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[6]</span></span></b></span><!--[endif]--></span></span></i></span></a><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 32.55pt 0pt 0cm; tab-stops: 40.85pt 426.1pt;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><o:p> </o:p></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">3)<span style="mso-tab-count: 1;"> </span>A life insurance policy guarantees a
future material protection for, <i>inter alia,</i> orphans, and it is again
justified by the saying of the <i>holy Prophet (SAW)</i>:<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 32.55pt 0pt 1cm; text-align: justify;">
<i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><o:p> </o:p></span></i><i><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;">“</span></i><i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";">I and the
person who looks after an orphan and provides for him, will be in paradise like
this, putting his index and middle finger together</span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;"><span dir="RTL"></span>…</span></i><span dir="LTR"></span><i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";"><span dir="LTR"></span>.</span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;"><span dir="RTL"></span>”</span></i><span dir="LTR"></span><i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";"><span dir="LTR"></span> [Narrated by Sahl bin Saad (r.a)].</span></i><a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn7" name="_ftnref7" style="mso-footnote-id: ftn7;" title=""><span class="MsoFootnoteReference"><i><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 11pt; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-font-size: 10.0pt;"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 11pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-font-size: 10.0pt; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[7]</span></span></b></span><!--[endif]--></span></span></i></span></a><i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";"><o:p></o:p></span></i></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">4)<span style="mso-tab-count: 1;"> </span>Having a life insurance policy provides
certain persons (as widows, orphans and so on) with a protection from unexpected
future material difficulties, which may result a hardship for the life of these
people.<span style="mso-spacerun: yes;"> </span>The <i>Holy Prophet</i> advised
the <i>ummah</i> to protect one from any form of hardships and difficulties
when he said to the effect:<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";">Whosoever
removes a worldly grief from a believer Allah (SWT) will remove from him one of
the grieves of the day of Judgement.<span style="mso-spacerun: yes;">
</span>Whosoever alleviates a needy person Allah (SWT) will alleviate from him
in this world and the next</span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;"><span dir="RTL"></span>…</span></i><span dir="LTR"></span><i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";"><span dir="LTR"></span> [Narrated by Abu Huraira ( r.a)].</span></i><a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn8" name="_ftnref8" style="mso-footnote-id: ftn8;" title=""><span class="MsoFootnoteReference"><i><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 11pt; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-font-size: 10.0pt;"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 11pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-font-size: 10.0pt; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[8]</span></span></b></span><!--[endif]--></span></span></i></span></a><i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";"><o:p></o:p></span></i></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; tab-stops: 40.85pt 426.1pt;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><o:p> </o:p></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">5)<span style="mso-tab-count: 1;"> </span>Having a life insurance policy is like
taking an initiative towards reducing the poverty rates and contributing
towards a reasonable comfortable life without such difficulties.<span style="mso-spacerun: yes;"> </span>It is thus justified by the <i>Qur’an</i>ic
principle whereby <i>Allah (SWT)</i> advised the creatures to seek from Him for
The Comfortable life. <i>He (SWT)</i> says to the effect:<o:p></o:p></span></div>
<br />
<div class="MsoNormal" dir="RTL" style="direction: rtl; margin: 0cm 0cm 0pt; text-align: justify; unicode-bidi: embed;">
<i><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;">“</span></i><span dir="LTR"></span><i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";"><span dir="LTR"></span>…our Lord!<span style="mso-spacerun: yes;"> </span>Give us
comfortable life in this world and comfortable in the hereafter...</span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;"><span dir="RTL"></span>”</span></i><a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn9" name="_ftnref9" style="mso-footnote-id: ftn9;" title=""><span class="MsoFootnoteReference"><i><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[9]</span></span></b></span><!--[endif]--></span></span></i></span></a><span style="font-size: 11pt; mso-ansi-language: EN-GB; mso-bidi-font-family: "Traditional Arabic";"><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; tab-stops: 40.85pt 426.1pt;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">6)<span style="mso-tab-count: 1;"> </span>A life insurance
policy ensures mutual cooperation, a brotherly feeling towards others, which
provides a positive status, which can provide a feeling of brotherhood in
society.<span style="mso-spacerun: yes;"> </span>For example, an assured pays
the premium, which enables the insurer to invest and make a profit while the
insurer ensures a financial protection for the assured</span><span dir="RTL"></span><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">s beneficiary(s).
Such financial cooperation lead to a sense of brotherhood and economic
progress.<span style="mso-spacerun: yes;"> </span>Moreover, having a life
insurance policy is a positive initiative by the assured towards a positive
material status of the widow, offspring and so on.<span style="mso-spacerun: yes;"> </span>Such mutual cooperation towards a positive
goal is in fact ruled on by <i>Allah (SWT)</i> where <i>He (SWT)</i> says to
the effect:<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 18.4pt 0pt 33.15pt; text-align: justify;">
<span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;"><span dir="RTL"></span>“</span></i><span dir="LTR"></span><i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";"><span dir="LTR"></span> …Sustain in mutual cooperation among yourselves in
righteousness and piety...</span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;"><span dir="RTL"></span>”</span></i><a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn10" name="_ftnref10" style="mso-footnote-id: ftn10;" title=""><span class="MsoFootnoteReference"><i><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[10]</span></span></b></span><!--[endif]--></span></span></i></span></a><i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";"><o:p></o:p></span></i></div>
<br />
<div class="MsoNormal" style="margin: 0cm 18.4pt 0pt 0cm; tab-stops: 40.85pt 426.1pt;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><o:p> </o:p></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">7)<span style="mso-tab-count: 1;"> </span>Finally having a life insurance policy
is like taking an initiative towards ensuring a self-reliant society, without
facing hardship and difficulties, and, of course, an economic growth in society
which may result in the elimination of hardship and bring about a comfortable
standard of living in the society.<span style="mso-spacerun: yes;"> </span>It
is thus in line with the <i>Qur’an</i>ic principle where <i>Allah (SWT)</i>
Himself prefers an easy life for the creatures rather than them having
difficulties.<span style="mso-spacerun: yes;"> </span><i>He (SWT)</i> says to
the effect:<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 18.4pt 0pt 0cm; tab-stops: 40.85pt 426.1pt;">
<span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;"><span dir="RTL"></span>“</span></i><span dir="LTR"></span><i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";"><span dir="LTR"></span>..Allah (SWT) intends easy life for
all of you while He does not want you to be in difficulties..</span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;"><span dir="RTL"></span>”</span></i><a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn11" name="_ftnref11" style="mso-footnote-id: ftn11;" title=""><span class="MsoFootnoteReference"><i><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[11]</span></span></b></span><!--[endif]--></span></span></i></span></a><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";"><o:p></o:p></span></div>
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 11pt; font-style: normal;"></span><br />
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 11pt; font-style: normal;">MODERN
LIFE INSURANCE Vs. FAMILY TAKĀFUL<o:p></o:p></span><br />
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><o:p> </o:p></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">The purpose of
scrutinizing is to discover the basic contrast between the conventional system
of life insurance and the Islamic model of it. <span style="mso-spacerun: yes;"> </span>This is because some ‘<i>Ulam</i></span><i><span lang="EN-US">ā</span></i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">
and many Muslims are of the impression that a life insurance is totally
prohibited in Islam.<span style="mso-spacerun: yes;"> </span>The argument has
been raised from the scenario of life insurance policy practiced under the
conventional system.<span style="mso-spacerun: yes;"> </span>It is to be acknowledging
here that even though in both the conventional system as well as in Islam a
notion of life insurance policy is being designed, there are undoubtedly
several aspects whereby both systems are in conflict in both principles and
practices.<span style="mso-spacerun: yes;"> </span>I would therefore, like to
sum up the basic contrast between them which may enable us to grasp the nature
of the Islamic model of a life insurance policy as an alternative to the one
which is practiced under the conventional system.<span style="mso-spacerun: yes;"> </span>The basic contrasts are as follows:<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><o:p> </o:p></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">1)<span style="mso-tab-count: 1;"> </span>A life insurance policy under the
conventional system evolves around the element of </span><span dir="RTL"></span><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>‘</span><i><span style="mso-ansi-language: EN-GB;">R</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">ib</span><span lang="EN-US">ā</span></i><span dir="RTL"></span><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span><span dir="LTR"></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><span dir="LTR"></span> whereas an Islamic model of life
insurance policy is totally free from the elements of </span><span dir="RTL"></span><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>‘</span><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">Rib</span><span lang="EN-US">ā</span></i><span dir="RTL"></span><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span><span dir="LTR"></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><span dir="LTR"></span>
for it is operated based on the principle of </span><span dir="RTL"></span><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>‘</span><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">al-Mudh</span><span lang="EN-US">ā</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">rabah
</span></i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">financing
technique.<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn12" name="_ftnref12" style="mso-footnote-id: ftn12;" title=""><span class="MsoFootnoteReference"><span style="font-family: "Times New Roman","serif"; mso-bidi-font-family: "Traditional Arabic";"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[12]</span></span></span><!--[endif]--></span></span></span></a><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; tab-stops: 40.85pt 426.1pt;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><o:p> </o:p></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">2)<span style="mso-tab-count: 1;"> </span>In a conventional system of life
insurance policy, the nominee(s) is an absolute beneficiary(s).<span style="mso-spacerun: yes;"> </span>Suffian J. in <i>Re Man bin Mihat</i>,<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn13" name="_ftnref13" style="mso-footnote-id: ftn13;" title=""><span class="MsoFootnoteReference"><span style="font-family: "Times New Roman","serif"; mso-bidi-font-family: "Traditional Arabic";"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[13]</span></span></span><!--[endif]--></span></span></span></a>
gave a verdict that, the nominee(s) <i>inter alia</i> in a life insurance
policy takes absolutely and exclusively the benefits of the policy.<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn14" name="_ftnref14" style="mso-footnote-id: ftn14;" title=""><span class="MsoFootnoteReference"><span style="font-family: "Times New Roman","serif"; mso-bidi-font-family: "Traditional Arabic";"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[14]</span></span></span><!--[endif]--></span></span></span></a><span style="mso-spacerun: yes;"> </span>In contrast, the nominee(s) in a life policy
under the Islamic model is not an absolute beneficiary(s) but a mere trustee
who is in a position to receive the benefit over the policy on behalf of the
assured</span><span dir="RTL"></span><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">s heirs and distribute it among them according to the
principles of ‘<i>M</i></span><i><span lang="EN-US">ī</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">rath</span></i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"> (inheritance) and
‘<i>Wasiyyah’ </i>(bequest)<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn15" name="_ftnref15" style="mso-footnote-id: ftn15;" title=""><span class="MsoFootnoteReference"><span style="font-family: "Times New Roman","serif"; mso-bidi-font-family: "Traditional Arabic";"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[15]</span></span></span><!--[endif]--></span></span></span></a>.<span style="mso-spacerun: yes;"> </span>In <i>Karim v. Hanifa<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn16" name="_ftnref16" style="mso-footnote-id: ftn16;" title=""><span class="MsoFootnoteReference"><span style="font-family: "Times New Roman","serif"; mso-bidi-font-family: "Traditional Arabic";"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[16]</span></span></b></span><!--[endif]--></span></span></span></a></i>
the High Court of Karachi ruled out that the nominee(s) in a life insurance
policy is nothing more than a mere agent.<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn17" name="_ftnref17" style="mso-footnote-id: ftn17;" title=""><span class="MsoFootnoteReference"><span style="font-family: "Times New Roman","serif"; mso-bidi-font-family: "Traditional Arabic";"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[17]</span></span></span><!--[endif]--></span></span></span></a><span style="mso-spacerun: yes;"> </span>The <i>National Council of Muslim Religious
Affairs</i> in Malaysia, also issued a <i>fatwa</i> to the same effect in 1979,
that the nominee(s) in a life insurance is a mere trustee who is supposed to
receive the benefit over the policy and distribute it among the heirs of the as
according to the principles of <i>‘M</i></span><i><span lang="EN-US">ī</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">rath’</span></i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"> and </span><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>‘</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">Wasiyyah</span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span></i><span dir="LTR"></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><span dir="LTR"></span>.<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn18" name="_ftnref18" style="mso-footnote-id: ftn18;" title=""><span class="MsoFootnoteReference"><span style="font-family: "Times New Roman","serif"; mso-bidi-font-family: "Traditional Arabic";"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[18]</span></span></span><!--[endif]--></span></span></span></a><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">3)<span style="mso-tab-count: 1;"> </span>Idea of a conventional designed life
insurance policy is that, if the assured dies at any time before the maturity
of the policy, the nominee(s) is entitled to maturity of the policy the
nominee(s) is entitled to recover from the insurer the whole amount agreed in
the policy, while if the assured is till alive life upon the expiry of the
policy period he is also entitled for the whole amount agreed in the policy
plus the interest, dividends and bonus subject to the company</span><span dir="RTL"></span><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">s
policy.<span style="mso-spacerun: yes;"> </span>On the contrary, in the paradigm
of an Islamic Model of life insurance policy is that if the assured dies at any
time before the policy matured the beneficiary(s) is entitled from the
insurance company to the whole amount of paid premiums, the bonus and dividends
according to the company</span><span dir="RTL"></span><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">s policy, a share of profits
made over the paid-premiums plus a donation from the company</span><span dir="RTL"></span><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">s
charitable fund according to the financial status of the beneficiary(s) (i.e.
if the beneficiary(s) is financially in good condition the amount will be
small<span style="mso-spacerun: yes;"> </span>but if the beneficiary(s) is
financially weak or unstable the amount could be bigger).<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn19" name="_ftnref19" style="mso-footnote-id: ftn19;" title=""><span class="MsoFootnoteReference"><span style="font-family: "Times New Roman","serif"; mso-bidi-font-family: "Traditional Arabic";"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[19]</span></span></span><!--[endif]--></span></span></span></a><span style="mso-spacerun: yes;"> </span>Such transaction is considered as a mutual
cooperation towards the welfare of the helpless people in society, and is thus
in line with the <i>Qur’an</i>ic principle.<span style="mso-spacerun: yes;">
</span><i>Allah (SWT</i>) says to the effect:<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt 47.35pt; text-align: justify;">
<i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";"><o:p> </o:p></span></i><i><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;">“</span></i><span dir="LTR"></span><i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";"><span dir="LTR"></span>…Cooperate among yourselves in righteousness and piety...</span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;"><span dir="RTL"></span>”</span></i><a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn20" name="_ftnref20" style="mso-footnote-id: ftn20;" title=""><span class="MsoFootnoteReference"><i><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[20]</span></span></b></span><!--[endif]--></span></span></i></span></a><i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";"><o:p></o:p></span></i></div>
<br />
<div align="center" class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: center;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">However, in the
case where the assured</span><span dir="RTL"></span><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">s is still alive upon the
expiry of the maturity period, he is entitled from the company the whole amount
of paid-premiums, a share of profit made over the paid-premiums according to
the principle of </span><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>‘</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">al-Mudh</span><span lang="EN-US">ā</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">rabah</span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span></i><span dir="LTR"></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><span dir="LTR"></span>, bonus
and dividends according to the company</span><span dir="RTL"></span><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">s policy.</span></div>
<div align="center" class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: center;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><o:p></o:p></span> </div>
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">4)<span style="mso-tab-count: 1;"> </span>In the operation of a life insurance
policy under the conventional system, the payments for the agents are to be
paid out of the assured</span><span dir="RTL"></span><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">s paid-premiums, whereas
under the Islamic model of a life insurance policy, the agents work for the
company and thus the company itself should pay them.<span style="mso-spacerun: yes;"> </span>This means that the payment for the agents
could include a share of profits made over the paid premiums, plus dividends
and bonus according to the company</span><span dir="RTL"></span><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">s policy.<o:p></o:p></span><br />
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><o:p> </o:p></span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">5)<span style="mso-tab-count: 1;"> </span>With regard to the insurable interest under
the conventional system, it is usually vested to the policyholder himself<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn21" name="_ftnref21" style="mso-footnote-id: ftn21;" title=""><span class="MsoFootnoteReference"><span style="font-family: "Times New Roman","serif"; mso-bidi-font-family: "Traditional Arabic";"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[21]</span></span></span><!--[endif]--></span></span></span></a>
should he be alive upon the expiry of the policy period.<span style="mso-spacerun: yes;"> </span>But, in the case of the death of the assured
within the period, the insurable interest is to be vested to husband and wife,
parents or children, the benefactor or beneficiary or servant, company and
director, trustee and employee, partners, mortgagor and mortgagee.<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn22" name="_ftnref22" style="mso-footnote-id: ftn22;" title=""><span class="MsoFootnoteReference"><span style="font-family: "Times New Roman","serif"; mso-bidi-font-family: "Traditional Arabic";"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[22]</span></span></span><!--[endif]--></span></span></span></a><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; tab-stops: 40.85pt 426.1pt;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">In contrast, under
the Islamic model, the insurable interest is to be vested to the assured
himself or to his heirs according to the principles of ‘<i>M</i></span><i><span lang="EN-US">ī</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">rath</span></i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">’ and <i>‘Wasiyyah’</i>.<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn23" name="_ftnref23" style="mso-footnote-id: ftn23;" title=""><span class="MsoFootnoteReference"><span style="font-family: "Times New Roman","serif"; mso-bidi-font-family: "Traditional Arabic";"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[23]</span></span></span><!--[endif]--></span></span></span></a><o:p></o:p></span></div>
<br />
<h2 style="direction: ltr; margin: 12pt 0cm 3pt; text-align: left; unicode-bidi: embed;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 11pt; font-style: normal;">UNDERLYING<span style="mso-spacerun: yes;"> </span>PRINCIPLES AFFECTING LIFE INSURANCE UNDER
SHARĪ’AH DISCIPLINE<o:p></o:p></span></h2>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><o:p> </o:p></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">It has obviously
been established from the earlier discussion that a life insurance policy under
the Islamic model is different from the one practiced under the conventional
system.<span style="mso-spacerun: yes;"> </span>Here I wish to propose the
following basic governing principles for the Islamic model of life insurance.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">1)<span style="mso-tab-count: 1;"> </span>Prior to entering into a life insurance
agreement, the assured must have a sincere intention that the policy will not
lead to gain but should look towards protection of off-springs, wife and the
other dependants from unexpected future financial risk.<span style="mso-spacerun: yes;"> </span>Simultaneously, he also has to put his trust
in Allah (<i>SWT</i>) for the betterment of those dependents’ future
lives.<span style="mso-spacerun: yes;"> </span>Such initiatives thus in line
with the advice of the <i>Holy Prophet (SAW)</i>:<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><o:p> </o:p></span><i><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;">"</span></i><i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";">The Holy
Prophet (SAW) told a bedouin Arab who left his camel untied trusting to the
Will of Allah (SWT):<span style="mso-spacerun: yes;"> </span>Tie the camel first
then leave it to Allah (SWT).</span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;"><span dir="RTL"></span>”</span></i><a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn24" name="_ftnref24" style="mso-footnote-id: ftn24;" title=""><span class="MsoFootnoteReference"><i><span dir="RTL" lang="AR-SA" style="font-size: 10pt; mso-ansi-font-size: 12.0pt; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-font-size: 10.0pt; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[24]</span></span></b></span><!--[endif]--></span></span></i></span></a><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 18.4pt 0pt 0cm; tab-stops: 40.85pt 426.1pt;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><o:p> </o:p></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">2)<span style="mso-tab-count: 1;"> </span>The life insurance policy should not be
involved with </span><span dir="RTL"></span><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>‘</span><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">rib</span><span lang="EN-US">ā</span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span></i><span dir="LTR"></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><span dir="LTR"></span>
but based on the principles of the </span><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>‘</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">al-Mudh</span><span lang="EN-US">ā</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">rabah</span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span></i><span dir="LTR"></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><span dir="LTR"></span>
financing technique, whereby the insurer as well as the assured or his
beneficiaries share the profits, bonus and dividends accordingly.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">3)<span style="mso-tab-count: 1;"> </span>In the case of the assured</span><span dir="RTL"></span><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">s
death at any time during the policy period, the beneficiary(s) of the assured
should not fight for the whole amount but only for the paid-premiums, a share
of profits made over the paid-premiums, bonus and dividends accordingly, plus a
donation from the company</span><span dir="RTL"></span><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">s charitable fund according
to the beneficiary(s) financial condition.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">4)<span style="mso-tab-count: 1;"> </span>In case where the assured is alive life
upon the expiry of the policy period, the assured can only claim from the
company the paid-premiums, a share of profits<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn25" name="_ftnref25" style="mso-footnote-id: ftn25;" title=""><span class="MsoFootnoteReference"><span style="font-family: "Times New Roman","serif"; mso-bidi-font-family: "Traditional Arabic";"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[25]</span></span></span><!--[endif]--></span></span></span></a>
made over the paid premiums, plus bonus and dividends according to the company</span><span dir="RTL"></span><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">s
policy.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">5)<span style="mso-tab-count: 1;"> </span>The nominee(s) in a life insurance
policy does not necessarily have to be an absolute beneficiary(s) but a mere
trustee who is under a duty to receive the benefits from the insurer and
distribute them among the heirs of the assured according to the principles of <i>‘M</i></span><i><span lang="EN-US">ī</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">rath’</span></i><span dir="RTL"></span><span dir="RTL" lang="EN-US" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span> </span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">and
<i>‘Wasiyyah’</i>.<span style="mso-spacerun: yes;"> </span>Hence, should the
nominee(s) fall into the category of heirs of the assured he/she is also
entitled to a share accordingly.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">6)<span style="mso-tab-count: 1;"> </span>The agents in a life insurance policy
should not be paid out of the paid premiums by the assured but be paid out of
the share of the profit made over the paid premiums by the company itself.<span style="mso-spacerun: yes;"> </span>This is because the agents are not working
for the assured but for the company.<span style="mso-spacerun: yes;">
</span>Therefore, the agents should enjoy a share (a salary) of the profits
according to the company</span><span dir="RTL"></span><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">s policy.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">7)<span style="mso-tab-count: 1;"> </span>As regards the investment of the paid
premiums, Adil Salahi suggested that the company (insurer) is under an
obligation to invest the paid premiums in a lawful business which is free from
the elements of </span><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>‘</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">Rib</span><span lang="EN-US">ā</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">’,</span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span></i><a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn26" name="_ftnref26" style="mso-footnote-id: ftn26;" title=""><span class="MsoFootnoteReference"><i><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[26]</span></span></b></span><!--[endif]--></span></span></i></span></a><span dir="LTR"></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><span dir="LTR"></span> gambling’ and other forms of unlawful transactions, contrary to
divine principles.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; tab-stops: 40.85pt 426.1pt;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">8)<span style="mso-tab-count: 1;"> </span>The insurable interest in a life policy
should be presented either to the assured himself (should he be alive upon the
expiry of the policy period) or to the heirs of the assured (should the assured
die at any time within the policy period) according to t he principles of <i>‘M</i></span><i><span lang="EN-US">ī</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">rath</span></i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"> and <i>‘Wasiyyah’</i>.<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn27" name="_ftnref27" style="mso-footnote-id: ftn27;" title=""><span class="MsoFootnoteReference"><span style="font-family: "Times New Roman","serif"; mso-bidi-font-family: "Traditional Arabic";"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[27]</span></span></span><!--[endif]--></span></span></span></a><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><o:p> </o:p></span></i><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 11pt; font-style: normal;">MISCONCEPTIONS
AGAINST THE VALIDITY OF LIFE INSURANCE <o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";"><o:p> </o:p></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">Some Islamic
scholars oppose the idea of contract of life insurance generally.<span style="mso-spacerun: yes;"> </span>They argue that, a life insurance contract is
contrary to the Divine principles and thus, is not permissible in Islam.<span style="mso-spacerun: yes;"> </span>There are another group of ‘<i>Ulam</i></span><i><span lang="EN-US">ā</span></i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">
who agreed to the general insurance with certain conditions but they opposed
the application of life insurance policy.<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn28" name="_ftnref28" style="mso-footnote-id: ftn28;" title=""><span class="MsoFootnoteReference"><span style="font-family: "Times New Roman","serif"; mso-bidi-font-family: "Traditional Arabic";"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[28]</span></span></span><!--[endif]--></span></span></span></a><span style="mso-spacerun: yes;"> </span>In this section, an attempt is made to
highlight the opposing views of the ‘<i>Ulam</i></span><i><span lang="EN-US">ā </span></i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">against the
validity of life insurance in today</span><span dir="RTL"></span><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">s society and
possible refutation to it.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<b><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">Opposing Views
among the ‘Ulama<o:p></o:p></span></i></b></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">Among the
opponents against the validity of life insurance are Mufti Mohd. Bakhit, Mohd.
Abu Zuhra, Mohd. Musa, Ahmad Ibrahim, Al- Hanafi, Ibd Abdeen, Sheikh Shaukat,
Khan Mohd. Yusuf Musa, Shaukat Alyan, Ahmad Fahmi, Ahmad Taha Sanusi, Abdur
Rahman Isa, Ali Khaleef and a few others including Al-Sheikh Jad Al-Haq Ali Jad
Al-Haq who vehemently oppose the idea as well as the operating of life
insurance policy in the light of the divine sanctions.<span style="mso-spacerun: yes;"> </span>In their judgement life insurance is
absolutely opposed to the <i>Shari’ah</i> discipline and thus shall not be
permissible in Islamic teachings.<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn29" name="_ftnref29" style="mso-footnote-id: ftn29;" title=""><span class="MsoFootnoteReference"><span style="font-family: "Times New Roman","serif"; mso-bidi-font-family: "Traditional Arabic";"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[29]</span></span></span><!--[endif]--></span></span></span></a><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><o:p> G</o:p></span><b><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">rounds for the
Opposing Views</span></i></b><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><o:p></o:p></span></i></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><o:p> </o:p></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">The grounds for
opposing the validity of life insurance are in fact based on many reasons.<span style="mso-spacerun: yes;"> </span>Here, I would like to sum up some of the
principal grounds upon which the ‘<i>Ulam</i></span><i><span lang="EN-US">ā</span></i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"> and many Muslims
are reluctant to accept a life insurance policy under the shield of Islamic
teachings.<span style="mso-spacerun: yes;"> </span>Their arguments rely on the
following grounds:<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">1)<span style="mso-tab-count: 1;"> </span>It is a policy of insuring one</span><span dir="RTL"></span><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">s
life.<span style="mso-spacerun: yes;"> </span><i>Sheikh Jad al-Haq</i> issued a </span><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>‘</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">Fatwa</span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span></i><span dir="LTR"></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><span dir="LTR"></span> against the validity of life insurance because it is a
transaction, which ensures one’s life, and insuring one</span><span dir="RTL"></span><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">s life by a
creature is not permissible in the <i>Shari</i></span><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">ah</span></i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">.<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn30" name="_ftnref30" style="mso-footnote-id: ftn30;" title=""><span class="MsoFootnoteReference"><span style="font-family: "Times New Roman","serif"; mso-bidi-font-family: "Traditional Arabic";"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[30]</span></span></span><!--[endif]--></span></span></span></a><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">2)<span style="mso-tab-count: 1;"> </span>A life insurance contract involves
unlawful elements.<span style="mso-spacerun: yes;"> </span>A contract, which
involves unlawful elements, can never be binding as the <i>Holy Prophet (SAW) </i>says
to the effect:<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 15.25pt 0pt 33.15pt; text-align: justify;">
<span dir="RTL"></span><i><span dir="RTL" lang="EN-US" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span><span style="mso-spacerun: yes;"> </span></span></i><i><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;">“</span></i><span dir="LTR"></span><i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";"><span dir="LTR"></span>..the Muslims are bound by the
conditions except the condition which prohibits the permitted one or the one
which permits the prohibited one.</span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;"><span dir="RTL"></span>”</span></i><a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn31" name="_ftnref31" style="mso-footnote-id: ftn31;" title=""><span class="MsoFootnoteReference"><i><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 11pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[31]</span></span></b></span><!--[endif]--></span></span></i></span></a><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";"><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">3)<span style="mso-tab-count: 1;"> </span>It contains the element of </span><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>‘</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">Riba</span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span></i><span dir="LTR"></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><span dir="LTR"></span>.<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn32" name="_ftnref32" style="mso-footnote-id: ftn32;" title=""><span class="MsoFootnoteReference"><span style="font-family: "Times New Roman","serif"; mso-bidi-font-family: "Traditional Arabic";"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[32]</span></span></span><!--[endif]--></span></span></span></a><span style="mso-spacerun: yes;"> </span>Many ‘<i>Ulama</i> oppose the validity of
life insurance because it involves the elements of both kinds of </span><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>‘</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">rib</span><span lang="EN-US">ā</span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span></i><span dir="LTR"></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><span dir="LTR"></span> i.e. </span><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>‘</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">riba al-Fadhl</span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span></i><span dir="LTR"></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><span dir="LTR"></span> and </span><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>‘</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">rib</span><span lang="EN-US">ā</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"> al-Nasiah</span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span></i><span dir="LTR"></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><span dir="LTR"></span>.<span style="mso-spacerun: yes;"> </span>For example, if the insurer pays the insured
or his beneficiary(s) in return of paid premiums more than what he paid, it
becomes </span><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>‘</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">rib</span><span lang="EN-US">ā</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">
al-fadhl</span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span></i><span dir="LTR"></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><span dir="LTR"></span>,
while the payments by the insurer to the assured after a particular period of
time becomes </span><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>‘</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">rib</span><span lang="EN-US">ā</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">
al-Nasiah</span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span></i><span dir="LTR"></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><span dir="LTR"></span>.<span style="mso-spacerun: yes;"> </span>Thus both situations make a life insurance
policy unlawful.<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn33" name="_ftnref33" style="mso-footnote-id: ftn33;" title=""><span class="MsoFootnoteReference"><span style="font-family: "Times New Roman","serif"; mso-bidi-font-family: "Traditional Arabic";"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[33]</span></span></span><!--[endif]--></span></span></span></a><span style="mso-spacerun: yes;"> </span>This is because, any transaction involving </span><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>‘</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">riba</span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span></i><span dir="LTR"></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><span dir="LTR"></span> does not have shelter in the Islamic S<i>hari</i></span><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">a</span></i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"> as <i>Allah (SWT)</i> declared to the effect:<o:p></o:p></span></div>
<br />
<div align="center" class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: center;">
<span dir="RTL"></span><i><span dir="RTL" lang="EN-US" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span><span style="mso-spacerun: yes;"> </span></span></i><i><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;">“</span></i><span dir="LTR"></span><i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";"><span dir="LTR"></span>… All</span></i><i><span lang="EN-US" style="font-size: 11pt;">ā</span></i><i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";">h (SWT) permitted trade while
prohibited rib</span></i><i><span lang="EN-US" style="font-size: 11pt;">ā</span></i><i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";">...</span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;"><span dir="RTL"></span>”</span></i><a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn34" name="_ftnref34" style="mso-footnote-id: ftn34;" title=""><span class="MsoFootnoteReference"><i><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[34]</span></span></b></span><!--[endif]--></span></span></i></span></a><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><o:p></o:p></span></i></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; tab-stops: 40.85pt 426.1pt;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><o:p> </o:p></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">4)<span style="mso-tab-count: 1;"> </span>It supersedes the Will of <i>Allah
(SWT)</i>.<span style="mso-spacerun: yes;"> </span>In a life insurance policy,
from the commencement of the contract between the insurer and the assured, the assured
always aims that upon his death, his beneficiary(s) would gain a large amount
of money.<span style="mso-spacerun: yes;"> </span>In such a situation the
assured predetermines his own death as well as confirming the material gain for
his beneficiary(s) whereas, Allah <i>SWT)</i> is the one who determines one</span><span dir="RTL"></span><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">s
death as well as future earnings.<span style="mso-spacerun: yes;"> </span><i>Allah
(SWT)</i> reminds us to the effect:<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><o:p> </o:p></span><i><span dir="RTL" lang="EN-US" style="mso-ansi-language: EN-GB;"><span style="mso-spacerun: yes;"> </span></span></i><i><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;">“</span></i><span dir="LTR"></span><i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";"><span dir="LTR"></span>.. Nor does anyone know what it is
that he will earn on the morrow, nor does anyone know in what land he is to
die, verily All</span></i><i><span lang="EN-US" style="font-size: 11pt;">ā</span></i><i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";">h
(SWT) has full knowledge and He is acquainted (with all things).</span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;"><span dir="RTL"></span>”</span></i><a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn35" name="_ftnref35" style="mso-footnote-id: ftn35;" title=""><span class="MsoFootnoteReference"><i><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[35]</span></span></b></span><!--[endif]--></span></span></i></span></a><i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";"><o:p></o:p></span></i></div>
<br />
<div class="MsoNormal" style="margin: 0cm 25.45pt 0pt 0cm; tab-stops: 40.85pt 426.1pt;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><o:p> </o:p></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">5)<span style="mso-tab-count: 1;"> </span>It contains an element of betting. In a
betting the gambler always hopes for a chance to gain.<span style="mso-spacerun: yes;"> </span>Similarly, in a life insurance policy the
assured upon the payment of premiums to the insurer always hopes for a change of
gaining a large amount of money.<span style="mso-spacerun: yes;"> </span>Hoping
for such a chance is similar to gambling and thus </span><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>‘</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">Shar</span><span lang="EN-US">ī</span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">ah</span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span></i><span dir="LTR"></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><span dir="LTR"></span> never
recognizes it as a valid transaction.<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn36" name="_ftnref36" style="mso-footnote-id: ftn36;" title=""><span class="MsoFootnoteReference"><span style="font-family: "Times New Roman","serif"; mso-bidi-font-family: "Traditional Arabic";"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[36]</span></span></span><!--[endif]--></span></span></span></a><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">6.<span style="mso-tab-count: 1;"> </span>It has element of </span><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>‘</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">al-Gharar</span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span></i><span dir="LTR"></span><i><span lang="AR-SA" style="mso-bidi-font-family: "Traditional Arabic";"><span dir="LTR"></span> </span></i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">(uncertainty). Any
contract whose <i>subject </i>matter or the object involves </span><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>‘</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">al-Gharar</span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span></i><span dir="LTR"></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><span dir="LTR"></span> (uncertainty) the contract deemed to be null and <i>void ab
initio</i>.<span style="mso-spacerun: yes;"> </span>In a life insurance contract
the subject matter is a death and it is not certain whether the assured</span><span dir="RTL"></span><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">s
death will occur during the policy period or not.<span style="mso-spacerun: yes;"> </span>Thus, such uncertainty in the life insurance
policy leads the policy to be invalid.<span style="mso-spacerun: yes;">
</span>Moreover, a transaction involves </span><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>‘</span></i><i><span style="mso-ansi-language: EN-GB;">al-</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">Gharar</span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span></i><span dir="LTR"></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><span dir="LTR"></span> is
prohibited in the Islamic discipline as the <i>Had</i></span><i><span lang="EN-US">ī</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">th</span></i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"> to this effect:<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 18.4pt 0pt 33.15pt; text-align: justify;">
<span dir="RTL"></span><i><span dir="RTL" lang="EN-US" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span><span style="mso-spacerun: yes;"> </span></span></i><i><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;">“</span></i><i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";">The
Holy Prophet (SAW) forbade the transaction through fraudulent means or the
Gharar Sale.</span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;"><span dir="RTL"></span>”</span></i><a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn37" name="_ftnref37" style="mso-footnote-id: ftn37;" title=""><span class="MsoFootnoteReference"><i><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[37]</span></span></b></span><!--[endif]--></span></span></i></span></a><i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";"><o:p></o:p></span></i></div>
<br />
<div class="MsoNormal" style="margin: 0cm 18.4pt 0pt 0cm; tab-stops: 40.85pt 426.1pt;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><o:p> </o:p></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">7)<span style="mso-tab-count: 1;"> </span>It contains the element of<span style="mso-spacerun: yes;"> </span><i>Maisir</i> (gambling). In a gambling the
gambler pays a certain amount of money and subsequently hopes for a chance to
gain an additional large amount of money.<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn38" name="_ftnref38" style="mso-footnote-id: ftn38;" title=""><span class="MsoFootnoteReference"><span style="font-family: "Times New Roman","serif"; mso-bidi-font-family: "Traditional Arabic";"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[38]</span></span></span><!--[endif]--></span></span></span></a><span style="mso-spacerun: yes;"> </span>Any transaction<span style="mso-spacerun: yes;"> </span>involving such element of gambling is
prohibited in the <i>Shari</i></span><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">ah</span></i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">, as <i>Allah
(SWT)</i> says to the effect:</span></div>
<div class="MsoNormal" style="margin: 0cm 18.4pt 0pt 0cm; tab-stops: 40.85pt 426.1pt;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><o:p></o:p></span> </div>
<i><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;">“</span></i><span dir="LTR"></span><i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";"><span dir="LTR"></span>…They ask thee concerning wine and gambling say in the them is
great sin...</span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;"><span dir="RTL"></span>”</span></i><a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn39" name="_ftnref39" style="mso-footnote-id: ftn39;" title=""><span class="MsoFootnoteReference"><i><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[39]</span></span></b></span><!--[endif]--></span></span></i></span></a><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";"><o:p></o:p></span><br />
<br />
<div align="center" class="MsoNormal" style="margin: 0cm 0cm 0pt -5.4pt; text-align: center; text-indent: 5.4pt;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">Similarly, in a
life insurance policy the assured always hope for a chance to gain which is in
the same nature as gambling and thus is prohibited in the Islamic<i> </i></span><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>‘</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">Shar</span><span lang="EN-US">ī</span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">ah</span></i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">. <o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">8)<span style="mso-tab-count: 1;"> </span>There is no direct authority, which
justifies life insurance.<span style="mso-spacerun: yes;"> </span>There are some
who do not accept the life insurance policy as a valid transaction.<span style="mso-spacerun: yes;"> </span>They claim that a life insurance policy is a
transaction, which cannot be, justified by the injunctions from either the </span><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>‘</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">Qur’an</span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span></i><span dir="LTR"></span><i><span lang="AR-SA" style="mso-bidi-font-family: "Traditional Arabic";"><span dir="LTR"></span> </span></i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">or
the </span><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>‘</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">Sunnah</span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span></i><span dir="LTR"></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><span dir="LTR"></span>.<o:p></o:p></span></div>
<br />
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<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><o:p> </o:p></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">9)<span style="mso-tab-count: 1;"> </span>It is contrary to the principles of </span><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>‘</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">Tawakkul</span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span></i><span dir="LTR"></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><span dir="LTR"></span> (placing the trust in <i>Allah (SWT)</i>.<span style="mso-spacerun: yes;"> </span>It is a fundamental obligation on believers,
in conformity with their faith, to place their trust always on the Al-Mighty <i>All</i></span><i><span lang="EN-US">ā</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">ah
(SWT).<span style="mso-spacerun: yes;"> </span></span></i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">As <i>Allah (SWT)</i>
commanded to the effect:<o:p></o:p></span></div>
<br />
<div align="center" class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: center;">
<span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;"><span dir="RTL"></span>“</span></i><span dir="LTR"></span><i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";"><span dir="LTR"></span>….but on All</span></i><i><span lang="EN-US" style="font-size: 11pt;">ā</span></i><i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";">h (SWT) </span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;"><span dir="RTL"></span>‘</span></i><i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";">Tawakkul</span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span></i><span dir="LTR"></span><i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";"><span dir="LTR"></span> (put your trust) if you have faith</span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span></i><span dir="LTR"></span><i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";"><span dir="LTR"></span>.</span></i><a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn40" name="_ftnref40" style="mso-footnote-id: ftn40;" title=""><span class="MsoFootnoteReference"><i><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 11pt; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-font-size: 10.0pt;"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 11pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-font-size: 10.0pt; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[40]</span></span></b></span><!--[endif]--></span></span></i></span></a><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";"><o:p></o:p></span></div>
<br />
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<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><o:p> </o:p></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">In a life insurance
policy once the assured enters into an agreement and pays regular premiums
while he hope that one day he will die and the insurer will protect his
beneficiary(s) financially.<span style="mso-spacerun: yes;"> </span>In this
case, the assured puts his trust not in <i>Allah (SWT)</i> but on the insurer
which is contrary to the <i>Qur’an</i>ic principles of </span><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>‘</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">Tawakkul</span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span></i><span dir="LTR"></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><span dir="LTR"></span> and
therefore a life insurance policy should be deemed to be unlawful.<o:p></o:p></span></div>
<br />
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<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">10)<span style="mso-tab-count: 1;"> </span>It is contrary to the principles of </span><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>‘</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">al- M</span><span lang="EN-US">ī</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">rath</span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span></i><span dir="LTR"></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><span dir="LTR"></span> and </span><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>‘</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">al-Wasiyyah</span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span></i><span dir="LTR"></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><span dir="LTR"></span>. It is a divine principle both <i>M</i></span><i><span lang="EN-US">ī</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">rath</span></i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"> and <i>Wasiyah</i>
that one</span><span dir="RTL"></span><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">s property and wealth upon death are, <i>inter alia,</i>
to be distributed according to the principles of <i>‘M</i></span><i><span lang="EN-US">ī</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">rath’</span></i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"> and <i>‘Wasiyyah’</i>.<span style="mso-spacerun: yes;"> </span>In the light of these principles the deceased
has no jurisdiction to determine the beneficiary(s) upon his death. <span style="mso-spacerun: yes;"> </span>In a life insurance policy however, the
assured nominates the beneficiary(s) who are expected to enjoy the benefits of
the policy.<span style="mso-spacerun: yes;"> </span>It seems that the assured
determines the beneficiary(s).<span style="mso-spacerun: yes;"> </span>Thus it
is contrary to the principles of <i>‘m</i></span><i><span lang="EN-US">ī</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">rath’</span></i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"> (inheritance) and
<i>‘Wasiyyah’</i> (bequest).<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn41" name="_ftnref41" style="mso-footnote-id: ftn41;" title=""><span class="MsoFootnoteReference"><span style="font-family: "Times New Roman","serif"; mso-bidi-font-family: "Traditional Arabic";"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[41]</span></span></span><!--[endif]--></span></span></span></a><o:p></o:p></span></div>
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<b><i><span lang="EN-US" style="font-size: 14pt; mso-bidi-font-family: "Traditional Arabic";">Recent
fatwa by Shaikh Al-Azhar.<o:p></o:p></span></i></b></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<b><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><o:p> </o:p></span></i></b><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">Sheikh<span style="mso-spacerun: yes;">
</span>al-Azhar, Al-Shaikh Jad-al-Haq Ali Jad al-Haq, responded in a fatwa</span><span dir="RTL"></span><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span><span dir="LTR"></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><span dir="LTR"></span> session on the position of life
insurance in Islamic <i>Shari’ah</i> which has appeared in </span><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>‘</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">al-Iqtisadul Islami</span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span></i><span dir="LTR"></span><span lang="AR-SA" style="mso-bidi-font-family: "Traditional Arabic";"><span dir="LTR"></span> </span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">July
1995, in the <i>Fatwa </i><span style="mso-spacerun: yes;"> </span>column, at
60.<span style="mso-spacerun: yes;"> </span>In his <i>Fatwa</i> he established
that a life insurance policy is prohibited in Islamic <i>Shar</i></span><i><span lang="EN-US">ī</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">’ah</span></i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">.<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn42" name="_ftnref42" style="mso-footnote-id: ftn42;" title=""><span class="MsoFootnoteReference"><span style="font-family: "Times New Roman","serif"; mso-bidi-font-family: "Traditional Arabic";"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[42]</span></span></span><!--[endif]--></span></span></span></a><span style="mso-spacerun: yes;"> </span>His claim was based on the following grounds:<o:p></o:p></span></div>
<br />
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<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><o:p> </o:p></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">1)<span style="mso-tab-count: 1;"> </span>In the light of the principles of
Islamic <i>Shari’ah</i> no one could ensure others</span><span dir="RTL"></span><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span><span dir="LTR"></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><span dir="LTR"></span> wealth or property unless there is a fear of unjust enrichment,
losses or destruction.<span style="mso-spacerun: yes;"> </span>In a life
insurance policy these three circumstances are not available; moreover, a life
insurance policy involves the element of <i>Rib</i></span><i><span lang="EN-US">ā
</span></i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">and
therefore it is not allowed in Islam.<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn43" name="_ftnref43" style="mso-footnote-id: ftn43;" title=""><span class="MsoFootnoteReference"><span style="font-family: "Times New Roman","serif"; mso-bidi-font-family: "Traditional Arabic";"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[43]</span></span></span><!--[endif]--></span></span></span></a><o:p></o:p></span></div>
<br />
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<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><o:p> 2</o:p></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">)<span style="mso-tab-count: 1;"> </span>Life insurance is a policy which
insurers one</span><span dir="RTL"></span><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">s life and thus it is not
permissible in Islam.<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn44" name="_ftnref44" style="mso-footnote-id: ftn44;" title=""><span class="MsoFootnoteReference"><span style="font-family: "Times New Roman","serif"; mso-bidi-font-family: "Traditional Arabic";"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[44]</span></span></span><!--[endif]--></span></span></span></a><o:p></o:p></span></div>
<br />
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<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><o:p> </o:p></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">3)<span style="mso-tab-count: 1;"> </span>A life insurance policy involves the
element of <i>al-Gharar</i> (uncertainty).<span style="mso-spacerun: yes;"> </span>A transaction, which involves <i>Gharar,</i>
is not valid in the eyes of the Islamic <i>Shar</i></span><i><span lang="EN-US">ī</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">’ah</span></i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"> and therefore a
life insurance is unlawful.<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn45" name="_ftnref45" style="mso-footnote-id: ftn45;" title=""><span class="MsoFootnoteReference"><span style="font-family: "Times New Roman","serif"; mso-bidi-font-family: "Traditional Arabic";"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[45]</span></span></span><!--[endif]--></span></span></span></a><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">4)<span style="mso-tab-count: 1;"> </span>Moreover, he went on to prolong his
discussion by arguing that, a life insurance contract evolves not around mutual
cooperation but unlawful elements and thus if a contract evolves around such
elements it is null and void<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn46" name="_ftnref46" style="mso-footnote-id: ftn46;" title=""><span class="MsoFootnoteReference"><span style="font-family: "Times New Roman","serif"; mso-bidi-font-family: "Traditional Arabic";"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[46]</span></span></span><!--[endif]--></span></span></span></a>
relating on the following <i>Had</i></span><i><span lang="EN-US">ī</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">th</span></i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">:<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 22.35pt 0pt 26.05pt; text-align: justify;">
<span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;"><span dir="RTL"></span>“</span></i><span dir="LTR"></span><i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";"><span dir="LTR"></span>..Muslims are bound by the conditions except the of conditions
which prohibit the permitted one or the one which permits the prohibited one.</span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;"><span dir="RTL"></span>”</span></i><a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn47" name="_ftnref47" style="mso-footnote-id: ftn47;" title=""><span class="MsoFootnoteReference"><i><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[47]</span></span></b></span><!--[endif]--></span></span></i></span></a><i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";"><o:p></o:p></span></i></div>
<br />
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<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><o:p> </o:p></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">5)<span style="mso-tab-count: 1;"> </span>Finally, he advised Muslims that
Muslims should get involved in a life insurance policy because anyone who
obtains money from such a policy is <i>Haram</i>.<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn48" name="_ftnref48" style="mso-footnote-id: ftn48;" title=""><span class="MsoFootnoteReference"><span style="font-family: "Times New Roman","serif"; mso-bidi-font-family: "Traditional Arabic";"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[48]</span></span></span><!--[endif]--></span></span></span></a><o:p></o:p></span></div>
<br />
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<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><o:p> </o:p></span><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 11pt; font-style: normal;">RESPONSE
TO THE MISCONCEPTIONS<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><o:p> </o:p></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">There are
differences of grounds relying on the divine authorities, authenticities and
analytical approaches, put forward by distinguished Islamic scholars in
opposing the operation of life insurance policy in the light of <i>Shar</i></span><i><span lang="EN-US">ī</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">’ah</span></i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"> discipline.<span style="mso-spacerun: yes;"> </span>I sincerely believe that if those scholars could
spend some time deeply concentrating on the issue of life insurance policies
without looking at the nature of how the conventional system operates but
consider the material risk of unfortunate orphans, widows and other dependents
who may unexpectedly loss their bread winner, then surely they could come up
with an alternative Islamic model of life insurance justified by the divine
sanctions, which may protect these vulnerable persons from unexpected future
material risks and ensure the elimination of poverty<span style="mso-spacerun: yes;"> </span>in<span style="mso-spacerun: yes;">
</span>society while guaranteeing an economic growth in the <i>Muslim Ummah</i>.<span style="mso-spacerun: yes;"> </span>In this part of the article, I would like to
respond to the views put forward by the opponents against the validity of life
insurance policies, which will enable us to understand the actual scenario of a
life insurance policy under Islamic teaching, and be able to distinguish a life
insurance policy under Islamic teaching from one which is operated under the
conventional system.<o:p></o:p></span></div>
<br />
<h3 style="margin: 0cm 0cm 0pt;">
<span lang="EN-US"><em><span style="font-size: small;">Response to Opponents in General</span></em></span></h3>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">1)<span style="mso-tab-count: 1;"> </span>Getting involve with a life insurance
policy does not mean that one is insurance one</span><span dir="RTL"></span><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">s own life, but it
is mere financial transaction based on the principles of <i>al-Mudh</i></span><i><span lang="EN-US">ā</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">rabah</span></i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"> relying on the <i>Qur’anic</i>
doctrine of mutual cooperation,<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn49" name="_ftnref49" style="mso-footnote-id: ftn49;" title=""><span class="MsoFootnoteReference"><span style="font-family: "Times New Roman","serif"; mso-bidi-font-family: "Traditional Arabic";"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[49]</span></span></span><!--[endif]--></span></span></span></a>
in taking an initiative towards rescuing orphans, widows, and other dependents
of the deceased from an unpredicted future material risk.<span style="mso-spacerun: yes;"> </span>In a life policy the insurer and the assured
equally believe prior to entering into the agreement that every creature is
subject to his own death, and thus the assured will surely meet his death.<span style="mso-spacerun: yes;"> </span>In other words, a life insurance policy means
an initiative to provide financial security for the orphans and so on, which
has nothing to do with insuring one</span><span dir="RTL"></span><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">s own life as
claimed by some.<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn50" name="_ftnref50" style="mso-footnote-id: ftn50;" title=""><span class="MsoFootnoteReference"><span style="font-family: "Times New Roman","serif"; mso-bidi-font-family: "Traditional Arabic";"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[50]</span></span></span><!--[endif]--></span></span></span></a><span style="mso-spacerun: yes;"> </span>Moreover, an initiative is like ensuring the
future welfare of the off-springs (orphans), widows, and dependents, and it is
highly justified by the Islamic doctrine of the following <i>Ah</i></span><i><span lang="EN-US">ā</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">dith</span></i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"> as the <i>Holy
Prophet (SAW)</i> stated to the effect:<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 18.4pt 0pt 33.15pt; text-align: justify;">
<span dir="RTL"></span><i><span dir="RTL" lang="EN-US" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span><span style="mso-spacerun: yes;"> </span></span></i><i><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;">“</span></i><i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";">Narrated
by Saad bin Abi Waqqas (r.a)</span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;"><span dir="RTL"></span>…</span></i><span dir="LTR"></span><i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";"><span dir="LTR"></span> the Holy Prophet (SAW) said</span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;"><span dir="RTL"></span>…</span></i><span dir="LTR"></span><i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";"><span dir="LTR"></span> it is better for you to leave<span style="mso-spacerun: yes;">
</span>your off-spring wealthy than to leave them poor, asking others for
help..</span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;"><span dir="RTL"></span>”</span></i><a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn51" name="_ftnref51" style="mso-footnote-id: ftn51;" title=""><span class="MsoFootnoteReference"><i><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[51]</span></span></b></span><!--[endif]--></span></span></i></span></a><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";"><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 18.4pt 0pt 33.15pt; text-align: justify;">
<i><span lang="EN-US" style="font-size: 11pt;"><o:p> </o:p></span></i><i><span dir="RTL" lang="EN-US" style="font-size: 11pt; mso-ansi-language: EN-GB;"><span style="mso-spacerun: yes;"> </span></span></i><i><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;">“</span></i><i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";">Narrated
by Saffwan bin Salim (r.a ) the Holy Prophet (SAW) said the one who looks after
and works for a widow and for a poor person is like a warrior fighting for
Allah</span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span></i><i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";">s
cause or</span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;"><span dir="RTL"></span>…</span></i><span dir="LTR"></span><i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";"><span dir="LTR"></span>. Fasts during the day and pray
through out the night</span></i><span dir="RTL"></span><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;"><span dir="RTL"></span>”</span><a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn52" name="_ftnref52" style="mso-footnote-id: ftn52;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[52]</span></span></span><!--[endif]--></span></span></span></a><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 32.55pt 0pt 0cm; text-align: justify;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><o:p> </o:p></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">Relying on the
above justifications, it could be stated here that a life insurance policy does
not mean to insure one</span><span dir="RTL"></span><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">s own life, but it is a great
contribution towards the future welfare of orphans, widows and other
dependents.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">2)<span style="mso-tab-count: 1;"> </span>A life insurance contract does not
involve unlawful elements like <i>al-Gharar</i>, <i>rib</i></span><i><span lang="EN-US">ā</span></i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">,
or gambling as claimed by some.<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn53" name="_ftnref53" style="mso-footnote-id: ftn53;" title=""><span class="MsoFootnoteReference"><span style="font-family: "Times New Roman","serif"; mso-bidi-font-family: "Traditional Arabic";"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[53]</span></span></span><!--[endif]--></span></span></span></a><span style="mso-spacerun: yes;"> </span>It is a lawful financial transaction whose
subject matter is the assured</span><span dir="RTL"></span><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">s death which is
not uncertain (<i>al-Gharar</i>) or the assured doe not hope for a chance (like
gambling) but he is taking an initiative for the future welfare of the orphans,
widows and so on, or it is a financial dealing based on the principles of <i>al-Mudh</i></span><i><span lang="EN-US">ā</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">rabah</span></i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"> financing
technique whereby the parties involved share the profits over the paid-premiums
and do not get the interest which is different from the one under the
conventional system on interest (which is <i>Rib</i></span><i><span lang="EN-US">ā</span></i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">-based).<span style="mso-spacerun: yes;"> </span>However, since the life insurance contract
does not involve these unlawful elements, it is thus lawful and binding because
the <i>Holy Prophet (SAW) </i>said:<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 15.25pt 0pt 33.15pt; text-align: justify;">
<span dir="RTL"></span><i><span dir="RTL" lang="EN-US" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span><span style="mso-spacerun: yes;"> </span></span></i><i><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;">“</span></i><i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";">Muslims
are bound by their contract except the one which prohibits the permitted one
and vice versa.</span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;"><span dir="RTL"></span>”</span></i><a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn54" name="_ftnref54" style="mso-footnote-id: ftn54;" title=""><span class="MsoFootnoteReference"><i><span dir="RTL" lang="AR-SA" style="font-size: 10pt; mso-ansi-font-size: 12.0pt; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-font-size: 10.0pt; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[54]</span></span></b></span><!--[endif]--></span></span></i></span></a><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">3)<span style="mso-tab-count: 1;"> </span>A life insurance policy does not
involve an element of <i>Rib</i></span><i><span lang="EN-US">ā</span></i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"> as claimed by
some ‘<i>Ulam</i></span><i><span lang="EN-US">ā</span></i><a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn55" name="_ftnref55" style="mso-footnote-id: ftn55;" title=""><span class="MsoFootnoteReference"><i><span lang="EN-US" style="font-family: "Times New Roman","serif"; mso-bidi-font-family: "Traditional Arabic";"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[55]</span></span></b></span><!--[endif]--></span></span></i></span></a><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"> but it is a
financial transaction which is in line with the principles of mutual
cooperation, which is based on the principle of the <i>al-Mudh</i></span><i><span lang="EN-US">ā</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">rabah</span></i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"> financing
technique whereby both the insurer and the assured enjoy the share of profits
made over the paid-premiums plus dividend bonus as well as an amount of
donation which is subject to the financial condition of the assured</span><span dir="RTL"></span><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">s
beneficiary(s).<span style="mso-spacerun: yes;"> </span>Thus, such transaction
of mutual cooperation is in line with the <i>Qur’anic</i> principle, where <i>Allah
(SWT)</i> commanded to the effect:<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; tab-stops: 40.85pt 426.1pt;">
<span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; font-size: 11pt; mso-ansi-language: EN-GB; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="RTL"></span>“</span></i><span dir="LTR"></span><i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";"><span dir="LTR"></span>..Cooperate ye one another in
righteousness and piety..</span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;"><span dir="RTL"></span>”</span></i><a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn56" name="_ftnref56" style="mso-footnote-id: ftn56;" title=""><span class="MsoFootnoteReference"><i><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[56]</span></span></b></span><!--[endif]--></span></span></i></span></a><i><span lang="EN-US" style="font-size: 11pt;"><o:p></o:p></span></i></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; tab-stops: 40.85pt 426.1pt;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><o:p> </o:p></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">4)<span style="mso-tab-count: 1;"> </span>A life insurance policy does not
supersede the Will of <i>Allah (SWT)</i> nor is it contrary to the principles
of <i>Taqdir</i> (fate), as some argue that the assured in a life insurance
policy determines his own death, whilst ensuring a future financial gain for
his beneficiary(s), and meanwhile places his trust in the insurer for the
financial protection of his beneficiary(s).<span style="mso-spacerun: yes;">
</span>These situations overrule the power of Allah (<i>SWT</i>).<span style="mso-spacerun: yes;"> </span>In responding to this arguments, in a life
insurance policy the assured believes that he will surely die, which does not
mean that he determines his own death, and such a believe is in line with the <i>Qur’an</i>ic
injunction:<o:p></o:p></span></div>
<i><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;">“</span></i><i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";">Every soul shall have a taste of
death..</span></i><a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn57" name="_ftnref57" style="mso-footnote-id: ftn57;" title=""><span class="MsoFootnoteReference"><i><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 11pt; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-font-size: 12.0pt;"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 11pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-font-size: 12.0pt; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[57]</span></span></b></span><!--[endif]--></span></span></i></span></a><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><o:p></o:p></span></i><br />
<br />
<div align="center" class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: center;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">The assured in a
life policy does not determine the future financial condition of his beneficiary(s),
but he takes an initiative towards rescuing his off-spring and so on from
future material risk, it is also in line with the tradition of the <i>Holy
Prophet (SAW)</i> said:<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 18.4pt 0pt 33.15pt; text-align: justify;">
<span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; font-size: 11pt; mso-ansi-language: EN-GB; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="RTL"></span>“</span></i><i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";">Whosoever
takes an initiative to alleviate one</span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span></i><i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";">s (inter alia material) difficulties,
Allah (SWT) will lighten his difficulties in the world and the next…</span></i><span dir="RTL"></span><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;"><span dir="RTL"></span>"</span><a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn58" name="_ftnref58" style="mso-footnote-id: ftn58;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[58]</span></span></span><!--[endif]--></span></span></span></a><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";"><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 18.4pt 0pt 15.85pt; text-align: justify;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><o:p> </o:p></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">Moreover, the
assured does not place his trust in the insurer to protect his beneficiary(s)
materially but he is in financial agreement with the insurer for a mutual cooperation
to look after the future welfare of his beneficiary(s), and it is no doubt
justified by the <i>Qur’anic</i> principle of mutual cooperation:<o:p></o:p></span></div>
<br />
<div align="center" class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: center;">
<span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;"><span dir="RTL"></span>“</span></i><span dir="LTR"></span><i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";"><span dir="LTR"></span>…Cooperate ye one another in righteousness and piety...</span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;"><span dir="RTL"></span>”</span></i><a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn59" name="_ftnref59" style="mso-footnote-id: ftn59;" title=""><span class="MsoFootnoteReference"><i><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[59]</span></span></b></span><!--[endif]--></span></span></i></span></a><i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";"><o:p></o:p></span></i></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; tab-stops: 40.85pt 426.1pt;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><o:p> </o:p></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">5)<span style="mso-tab-count: 1;"> </span>A life insurance policy does not
involve elements of betting.<span style="mso-spacerun: yes;"> </span><i>Mustafa
Al-Zarqa</i> opined that in a bet the person always hopes for a chance and
there is no element of cooperation in it,<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn60" name="_ftnref60" style="mso-footnote-id: ftn60;" title=""><span class="MsoFootnoteReference"><span style="font-family: "Times New Roman","serif"; mso-bidi-font-family: "Traditional Arabic";"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[60]</span></span></span><!--[endif]--></span></span></span></a>
rather it is some sort of competition.<span style="mso-spacerun: yes;">
</span>In contrast, a life insurance policy is based on the principle of
cooperation<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn61" name="_ftnref61" style="mso-footnote-id: ftn61;" title=""><span class="MsoFootnoteReference"><span style="font-family: "Times New Roman","serif"; mso-bidi-font-family: "Traditional Arabic";"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[61]</span></span></span><!--[endif]--></span></span></span></a>
in which the assured never hopes for a chance but works for the welfare of
orphans, widows and other dependents which is in line with the saying of the <i>Holy
Prophet (SAW)</i>.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; tab-stops: 40.85pt 426.1pt;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><o:p> </o:p></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">6)<span style="mso-tab-count: 1;"> </span>A life insurance policy does not evolve
around the element of gambling because a life insurance policy is for the
purpose of the material welfare of orphans, widows and other dependents,
whereas gambling is a game of chance whereby the gambler always hopes to gain.<span style="mso-spacerun: yes;"> </span>Therefore, a life insurance policy is
contrary to gambling.<span style="mso-spacerun: yes;"> </span><i>Al-Dareer</i>
acknowledged that in the insurance policy there is safety against danger
whereas gambling creates danger, so how could an insurance policy be equal to
gambling?<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn62" name="_ftnref62" style="mso-footnote-id: ftn62;" title=""><span class="MsoFootnoteReference"><span style="font-family: "Times New Roman","serif"; mso-bidi-font-family: "Traditional Arabic";"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[62]</span></span></span><!--[endif]--></span></span></span></a><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">7)<span style="mso-tab-count: 1;"> </span>There is no element of uncertainty (<i>Gharar)</i><span style="mso-spacerun: yes;"> </span>in a life insurance policy because in a life
insurance policy, the subject matter is the death of the assured; the
assured<span style="mso-spacerun: yes;"> </span>believes that he will die one
day as ordained in the Holy <i>Qur’an,</i> and thus it is not uncertain (<i>Gharar</i>).<span style="mso-spacerun: yes;"> </span>Moreover, sharing profits over the
paid-premiums are also not uncertain (<i>Gharar)</i> because a life insurance
policy is based on the principles of <i>al-Mudh</i></span><i><span lang="EN-US">ā</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">rabah</span></i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">, whereby if the
assured dies within the policy period, the beneficiary(s) will get the benefits
according to the principles of <i>al-Mudh</i></span><i><span lang="EN-US">ā</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">rabah</span></i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">.<span style="mso-spacerun: yes;"> </span>But, if the assured is still alive upon the
expiry of the policy period, he is also entitled to the claim according to the
principles of <i>al-Mudh</i></span><i><span lang="EN-US">ā</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">rabah</span></i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">.<span style="mso-spacerun: yes;"> </span>In all these situations, the subject matter,
the object and consideration (premiums) of the transaction are clear and not
uncertain (<i>Gharar</i>).<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; tab-stops: 40.85pt 426.1pt;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><o:p> </o:p></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">8)<span style="mso-tab-count: 1;"> </span>Even though there is no express
authorities from the <i>Qur’an</i> or <i>Sunnah</i> highlighting the life
insurance policy there are a number of authorities from the <i>Qur’an</i> and <i>Sunnah</i>
which impliedly justify a model of life insurance policy for the Muslim <i>Ummah</i>
which is quite different from the one operated under the conventional
system.<span style="mso-spacerun: yes;"> </span>For example, a life insurance
policy is based on the principle of mutual cooperation, is justified by the <i>Qur’anic</i>
injunction at 5:2, it is operated based on the principle <i>al-Mudh</i></span><i><span lang="EN-US">ā</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">rabah</span></i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"> financing
technique which is justified by the <i>Sunnah</i> of the <i>Holy Prophet (SAW)</i>
and there are many other authorities and authenticities which justify different
aspects of life insurance policies as mentioned earlier.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; tab-stops: 40.85pt 426.1pt;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><o:p> </o:p></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">9)<span style="mso-tab-count: 1;"> </span>Some argue that a life insurance policy
is contrary to the principles of <i>Tawakkul</i> (placing trust in <i>Allah
(SWT)</i>) because<span style="mso-spacerun: yes;"> </span>in a life insurance
policy, the assured<span style="mso-spacerun: yes;"> </span>puts his trust not
in <i>Allah (SWT)</i> but in the insurer who is expected to protect the
beneficiary(s) financially.<span style="mso-spacerun: yes;"> </span>Responding
to this argument, I would like to point out here that a life insurance policy
is not contrary to the principle of <i>Tawakkul</i>, but<span style="mso-spacerun: yes;"> </span>it is a policy whereby the insured takes an
initiative for<span style="mso-spacerun: yes;"> </span>the welfare of his
off-springs and so on, in which he mutually agrees with the insurer that the
insurer will undertake to provide a material assistance in consideration of the
paid-premiums.<span style="mso-spacerun: yes;"> </span>The assured
simultaneously places his trust in <i>Allah (SWT)</i> for the betterment of his
beneficiaries</span><span dir="RTL"></span><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span><span dir="LTR"></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><span dir="LTR"></span>
future life.<span style="mso-spacerun: yes;"> </span>Thus the assured does not<i>
Tawakkul </i>on the insurer but on <i>All</i></span><i><span lang="EN-US">ā</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">h (SWT).</span></i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><span style="mso-spacerun: yes;"> </span>It is<span style="mso-spacerun: yes;">
</span>in line with the saying of the <i>Holy Prophet (SAW):</i><o:p></o:p></span></div>
<i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";"></span></i><br />
<i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";">The
Holy Prophet (SAW) told a bedouin Arab who left his camel untied trusting to
the will of Allah (SWT):<span style="mso-spacerun: yes;"> </span>Tie the camel
first then leave it to (put your trust on) Allah (SWT)</span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;"><span dir="RTL"></span>”</span></i><a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn63" name="_ftnref63" style="mso-footnote-id: ftn63;" title=""><span class="MsoFootnoteReference"><i><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[63]</span></span></b></span><!--[endif]--></span></span></i></span></a><i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";"><o:p></o:p></span></i><br />
<br />
<div class="MsoNormal" style="margin: 0cm 18.4pt 0pt 0cm; tab-stops: 40.85pt 426.1pt;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><o:p> </o:p></span><span lang="EN-US"><span style="mso-list: Ignore;">10)<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><!--[endif]--><span dir="LTR"></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">A life insurance policy is
not contrary to the principles of <i>M</i></span><i><span lang="EN-US">ī</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">rath</span></i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"> (inheritance) and
<i>Wasiyah</i> (bequest).<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn64" name="_ftnref64" style="mso-footnote-id: ftn64;" title=""><span class="MsoFootnoteReference"><span style="font-family: "Times New Roman","serif"; mso-bidi-font-family: "Traditional Arabic";"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[64]</span></span></span><!--[endif]--></span></span></span></a><span style="mso-spacerun: yes;"> </span>In a life insurance policy the assured
nominates a particular person(s) as a nominee(s) who is nothing more than a
trustee,<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn65" name="_ftnref65" style="mso-footnote-id: ftn65;" title=""><span class="MsoFootnoteReference"><span style="font-family: "Times New Roman","serif"; mso-bidi-font-family: "Traditional Arabic";"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[65]</span></span></span><!--[endif]--></span></span></span></a>
who is under a responsibility to receive the benefits over the policy on behalf
of the heirs of the assured<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn66" name="_ftnref66" style="mso-footnote-id: ftn66;" title=""><span class="MsoFootnoteReference"><span style="font-family: "Times New Roman","serif"; mso-bidi-font-family: "Traditional Arabic";"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[66]</span></span></span><!--[endif]--></span></span></span></a>
and distribute them amongst them according to the principles of <i>al- M</i></span><i><span lang="EN-US">ī</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">rath</span></i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"> and <i>Wasiyyah</i>.<span style="mso-spacerun: yes;"> </span>Hence, the nominee(s) is entitled only to a
portion of the benefits over the policy if he/she falls under the category
of<span style="mso-spacerun: yes;"> </span>heirs of the assured.<o:p></o:p></span></div>
<b><i><span lang="EN-US" style="font-size: 14pt; mso-bidi-font-family: "Traditional Arabic";">Analyzing
the Recent Fatwa of Sheikh Al-Azhar</span></i></b><a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn67" name="_ftnref67" style="mso-footnote-id: ftn67;" title=""><span class="MsoFootnoteReference"><b><i><span lang="EN-US" style="font-family: "Times New Roman","serif"; mso-bidi-font-family: "Traditional Arabic";"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[67]</span></span></b></span><!--[endif]--></span></span></i></b></span></a><b><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><o:p></o:p></span></i></b><br />
<br />
<div class="MsoNormal" style="margin: 0cm 32.6pt 0pt 0cm; text-align: justify;">
<i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><o:p> </o:p></span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">Sheikh
Al-Azhar al-Sheikh Jad al-Haq Ali Jad al-Haq</span></i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"> has submitted in a <i>Fatwa</i>
session recently that a life insurance policy is in the light of <i>Shari’ah</i>
unlawful (<i>haram</i>).<span style="mso-spacerun: yes;"> </span>His claim for
such a decision was based on a few grounds (as mentioned earlier).<span style="mso-spacerun: yes;"> </span>In this part of the article, I would like to
respond to the grounds that the honorable <i>Sheikh</i> has put forward as a
basis for opposing the validity of life insurance policies as follows:<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">1)<span style="mso-tab-count: 1;"> </span>In the <i>Shar</i></span><i><span lang="EN-US">ī</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">’ah</span></i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"> discipline no one
has the right to insure the others</span><span dir="RTL"></span><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span><span dir="LTR"></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><span dir="LTR"></span> property unless there is a fear of unjust enrichment, losses or
destruction.<span style="mso-spacerun: yes;"> </span>In a life insurance policy
the insurer insures a benefit over the paid-premiums (by the assured), for the
welfare of the beneficiary(s) of the assured, for an unexpected event, the
assured</span><span dir="RTL"></span><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">s death (loss of life) and also for the fear of the loss
of the beneficiary</span><span dir="RTL"></span><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">s(s) material stability upon
the death of the assured.<span style="mso-spacerun: yes;"> </span>In all
situations the life insurance policy contains an element of loss.<span style="mso-spacerun: yes;"> </span><i>Abu Jaib</i> has pointed out that an
insurance policy is a compensation for any loss incurred by the insured and it
is neither a profit nor a gain like in betting.<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn68" name="_ftnref68" style="mso-footnote-id: ftn68;" title=""><span class="MsoFootnoteReference"><span style="font-family: "Times New Roman","serif"; mso-bidi-font-family: "Traditional Arabic";"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[68]</span></span></span><!--[endif]--></span></span></span></a><span style="mso-spacerun: yes;"> </span>Hence a life insurance policy is not contrary
to the <i>Shar</i></span><i><span lang="EN-US">ī</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">’ah</span></i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"> discipline.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">2)<span style="mso-tab-count: 1;"> </span>A life insurance policy does not
involve elements of <i>Rib</i></span><i><span lang="EN-US">ā</span></i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"> but it is a
financial transaction based on the principle of <i>al-Mudh</i></span><i><span lang="EN-US">ā</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">rabah</span></i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"> financial
technique relying on the principles of mutual cooperation which is justified by
the <i>Qur’anic</i> sanction.<span style="mso-spacerun: yes;"> </span><i>All</i></span><i><span lang="EN-US">ā</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">h
(SWT)</span></i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">
says to the effect:<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><o:p> </o:p></span><i><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;">“</span></i><span dir="LTR"></span><i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";"><span dir="LTR"></span>…Cooperate ye one another in righteousness and piety...</span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;"><span dir="RTL"></span>”</span></i><a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn69" name="_ftnref69" style="mso-footnote-id: ftn69;" title=""><span class="MsoFootnoteReference"><i><span dir="RTL" lang="AR-SA" style="font-size: 10pt; mso-ansi-font-size: 12.0pt; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-font-size: 10.0pt; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[69]</span></span></b></span><!--[endif]--></span></span></i></span></a><i><span style="font-size: 11pt; mso-ansi-language: EN-GB;"><o:p></o:p></span></i></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; tab-stops: 35.45pt 416.5pt;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><o:p> </o:p></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">3)<span style="mso-tab-count: 1;"> </span>A life insurance policy does not
involve insuring one</span><span dir="RTL"></span><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">s own life but it is a mutual
financial transaction towards the welfare of orphans, widows and other
dependents.<span style="mso-spacerun: yes;"> </span>Such an initiative is in
fact well justified by the sayings of the <i>Holy Prophet (SAW).<span style="mso-spacerun: yes;"> </span></i>He <i>(SAW)</i> however said to the
effect in the following <i>Ah</i></span><i><span lang="EN-US">ā</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">dith</span></i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">:<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 30.05pt 0pt 22.95pt; text-align: justify;">
<span lang="EN-US"><o:p> </o:p></span><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;">“</span><i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";">Narrated by Sahal bin Sa</span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span></i><i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";">ad (R ) the Holy Prophet
(SAW) said:<span style="mso-spacerun: yes;"> </span>I and the person who looks
after an orphan and provides for him will be in paradise..</span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;"><span dir="RTL"></span>”</span></i><a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn70" name="_ftnref70" style="mso-footnote-id: ftn70;" title=""><span class="MsoFootnoteReference"><i><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[70]</span></span></b></span><!--[endif]--></span></span></i></span></a><i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";"><o:p></o:p></span></i></div>
<br />
<div class="MsoNormal" style="margin: 0cm 8.2pt 0pt 36.05pt; text-align: justify;">
<span dir="RTL"></span><i><span dir="RTL" lang="EN-US" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span><span style="mso-spacerun: yes;"> </span></span></i><i><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;">“</span></i><i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";">Narby
Abu Huraira (r.a) the Holy Prophet (SAW) said</span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;"><span dir="RTL"></span>…</span></i><span dir="LTR"></span><i><span lang="AR-SA" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";"><span dir="LTR"></span> </span></i><i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";">whosoever takes an initiative
(towards the welfare of)<span style="mso-spacerun: yes;"> </span>one</span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;"><span dir="RTL"></span>’</span></i><i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";">s inter alia financial
difficulties, Allah (SWT) will lighten his difficulties in this world and in
the hereafter.</span></i><span dir="RTL"></span><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;"><span dir="RTL"></span>”</span><a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn71" name="_ftnref71" style="mso-footnote-id: ftn71;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[71]</span></span></span><!--[endif]--></span></span></span></a><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";"><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 8.2pt 0pt 36.05pt; text-align: justify;">
<span dir="RTL"></span><i><span dir="RTL" lang="EN-US" style="font-size: 11pt; mso-ansi-language: EN-GB;"><span dir="RTL"></span><span style="mso-spacerun: yes;"> </span></span></i><i><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;">“</span></i><i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";">Narrated
by Safwan bin Salim (r.a) the Holy Prophet (SAW) said : the one who looks after
and works for a widow and for a poor person is like a warrior fighting for the
cause of Allah (SWT) of like a person who fasts during the day and pray through
out the night</span></i><span dir="RTL"></span><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;"><span dir="RTL"></span>”</span><a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn72" name="_ftnref72" style="mso-footnote-id: ftn72;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[72]</span></span></span><!--[endif]--></span></span></span></a><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";"><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 8.2pt 0pt 36.05pt; text-align: justify;">
<span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";"><o:p> </o:p></span><i><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;">“</span></i><i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";">Narrated by
Saad bin Abi Waqqas (r.a)</span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;"><span dir="RTL"></span>…</span></i><span dir="LTR"></span><i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";"><span dir="LTR"></span> the Holy Prophet (SAW) said</span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;"><span dir="RTL"></span>…</span></i><span dir="LTR"></span><i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";"><span dir="LTR"></span> it is better for you to leave<span style="mso-spacerun: yes;">
</span>your off-spring wealthy than to leave them poor, asking others for
help..</span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;"><span dir="RTL"></span>”</span></i><a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn73" name="_ftnref73" style="mso-footnote-id: ftn73;" title=""><span class="MsoFootnoteReference"><i><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[73]</span></span></b></span><!--[endif]--></span></span></i></span></a><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><o:p></o:p></span></i></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; tab-stops: 35.45pt 416.5pt;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><o:p> </o:p></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">4)<span style="mso-tab-count: 1;"> </span>A life insurance policy does not
contain any element of <i>al-Gharar</i> (uncertainty).<span style="mso-spacerun: yes;"> </span>The assured believes that the subject matter
of life insurance is his death which is certain and not <i>Gharar, </i>moreover,
the benefit over the policy in consideration of paid-premiums is also available
which is certain according to the principle of <i>al-Mudh</i></span><i><span lang="EN-US">ā</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">rabah</span></i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"> and thus there is
no element of <i>Gharar</i> in it.<span style="mso-spacerun: yes;">
</span>Hence, a misconception against a life insurance policy involves an
element of <i>gharar </i>is very refutable.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">5)<span style="mso-tab-count: 1;"> </span>A life insurance contract to involves
unlawful elements like <i>Gharar</i>, gambling, <i>Rib</i></span><i><span lang="EN-US">ā</span></i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">,
etc. which make the contract unlawful as claimed by <i>Shaikh al-Azhar<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn74" name="_ftnref74" style="mso-footnote-id: ftn74;" title=""><span class="MsoFootnoteReference"><span style="font-family: "Times New Roman","serif"; mso-bidi-font-family: "Traditional Arabic";"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[74]</span></span></b></span><!--[endif]--></span></span></span></a></i><span style="mso-spacerun: yes;"> </span>But it is a mutual financial contract which
is free from the above unlawful elements (as proved in the earlier discussion)
and therefore, it is binding as justified by the saying of the <i>Holy Prophet</i>
<i>(SAW):<o:p></o:p></i></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 1.1pt 0pt 36.05pt; text-align: justify;">
<span dir="RTL"></span><i><span dir="RTL" lang="EN-US" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span><span style="mso-spacerun: yes;"> </span></span></i><i><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;">“</span></i><i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";">Muslims
are bound by their contract except the one which prohibits the permitted one or
permits the prohibited one…….</span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;"><span dir="RTL"></span>”</span></i><a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn75" name="_ftnref75" style="mso-footnote-id: ftn75;" title=""><span class="MsoFootnoteReference"><i><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[75]</span></span></b></span><!--[endif]--></span></span></i></span></a><span style="font-size: 11pt; mso-ansi-language: EN-GB; mso-bidi-font-family: "Traditional Arabic";"><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; tab-stops: 35.45pt 416.5pt;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">Based on these
responses, I would like to humbly remark that the idea that <i>Shaikh al-Azhar</i>
put forward in conclusion of his <i>Fatwa</i>, advising Muslim <i>Ummah</i> not
to engage in a life insurance policy because it is <i>Haram</i> (unlawful)
should be rebutable.<span style="mso-spacerun: yes;"> </span>I sincerely expect
that Muslim <i>Ummah</i> should not be confused but would clearly understand the
concept that life insurance is valid if applied accordingly and benefits can be
rightly gained from it.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><o:p> </o:p></span><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 11pt; font-style: normal;">URTHER
GROUNDS FOR JUSTIFICATION IN THE LIGHT OF SHARI’AH AUTHORITIES AND
AUTHENTICITIES<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">From the earlier debates
and justifications based on various authorities and authenticities, it has been
quite clear that a life insurance policy designed under the Islamic model is an
alternative solution to a conventional life insurance policy for the
contemporary Muslim <i>Ummah.</i><span style="mso-spacerun: yes;">
</span>Nevertheless, I would also like to present a few other grounds here to
justify the idea that a life insurance policy is not permissible for the
purpose of luxury but it is permissible and encouraged by Muslim<i> Ummah </i>for
necessity, in order to ensure economic growth and stability among Muslim <i>Ummah</i>
of today.<span style="mso-spacerun: yes;"> </span>Further grounds for the
justification of a life insurance policy are as follows:<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">1)<span style="mso-tab-count: 1;"> </span>A life insurance policy is similar to a
contract of <i>al-Wadiah</i> (deposit) whereby two parties in a financial transaction
engage in an agreement that one party deposits money as an <i>Am</i></span><i><span lang="EN-US">ā</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">nah
(</span></i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">trust)
to the other party to be kept for the purpose of safety.<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn76" name="_ftnref76" style="mso-footnote-id: ftn76;" title=""><span class="MsoFootnoteReference"><span style="font-family: "Times New Roman","serif"; mso-bidi-font-family: "Traditional Arabic";"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[76]</span></span></span><!--[endif]--></span></span></span></a><span style="mso-spacerun: yes;"> </span>A <i>Wadiah</i> is justified by the <i>Qur’an</i>ic
injunction where <i>Allah (SWT)</i> commanded people to fulfill the trust (of, <i>inter
alia, Wadiah</i>).<span style="mso-spacerun: yes;"> </span><i>All</i></span><i><span lang="EN-US">ā</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">h
(SWT) </span></i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">ordains
to the effect:<o:p></o:p></span></div>
<i><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;">“</span></i><i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";">Allah (SWT) commands you to
render back your trusts to those to whom they are due..</span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;"><span dir="RTL"></span>”</span></i><a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn77" name="_ftnref77" style="mso-footnote-id: ftn77;" title=""><span class="MsoFootnoteReference"><i><span dir="RTL" lang="AR-SA" style="font-size: 10pt; mso-ansi-font-size: 12.0pt; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-font-size: 10.0pt; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[77]</span></span></b></span><!--[endif]--></span></span></i></span></a><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><o:p></o:p></span></i><br />
<br />
<div class="MsoNormal" style="margin: 0cm 46.75pt 0pt 0cm; tab-stops: 40.85pt 426.1pt;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><o:p> </o:p></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">2)<span style="mso-tab-count: 1;"> </span>A life policy is a financial
transaction which had been dealt with by the people before Islam under the
doctrine of </span><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>‘</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">al-Aqilah</span></i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"> as a </span><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>‘</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">Urf</span></i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"> (custom) which had been accepted by the <i>Holy Prophet
(SAW)</i> whereby the people of every tribe used to deposit money for a certain
amount in order to pay blood money as a compensation on behalf of the killer of
their own tribe to the heirs of the victim of other tribe.<span style="mso-spacerun: yes;"> </span>Such </span><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>‘</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">Urf</span></i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><span style="mso-spacerun: yes;"> </span>(custom) was deemed to bring benefit to
society.<span style="mso-spacerun: yes;"> </span>A custom, which is beneficial
to society, is permissible in Islam as justified by the saying of the <i>Holy
Prophet (SAW)</i>:<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 15.25pt 0pt 33.15pt; text-align: justify;">
<span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;"><span dir="RTL"></span>“</span></i><i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";">Whatever
Muslims see good, it is good in the eyes of Allah (SWT)</span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;"><span dir="RTL"></span>”</span></i><a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn78" name="_ftnref78" style="mso-footnote-id: ftn78;" title=""><span class="MsoFootnoteReference"><i><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[78]</span></span></b></span><!--[endif]--></span></span></i></span></a><i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";"><o:p></o:p></span></i></div>
<br />
<div class="MsoNormal" style="margin: 0cm 15.25pt 0pt 33.15pt; text-align: justify;">
<i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";"><o:p> </o:p></span></i></div>
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"> life insurance
policy is based on the sanction of mutual cooperation so as the doctrine of <i>al-‘Aqila</i>
practice was also based on mutual cooperation, therefore, <i>Zarqa</i> and <i>Alwan</i>
accepted the idea that there is enormous similarity between insurance and <i>al-‘Aqila</i>
in the sense of cooperation.<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn79" name="_ftnref79" style="mso-footnote-id: ftn79;" title=""><span class="MsoFootnoteReference"><span style="font-family: "Times New Roman","serif"; mso-bidi-font-family: "Traditional Arabic";"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[79]</span></span></span><!--[endif]--></span></span></span></a></span><br />
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><o:p></o:p></span><br />
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">3)<span style="mso-tab-count: 1;"> </span>Every transaction is originally
acceptable, unless it involves unlawful elements.<span style="mso-spacerun: yes;"> </span>Relying on this principle, it is admitted
here that in a life insurance policy the elements contained are in line with
the <i>Shar</i></span><i><span lang="EN-US">ī</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">’ah</span></i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"> principles (the
life insurance policy which is based on the Islamic model), and therefore it is
undoubtedly lawful.<o:p></o:p></span><br />
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; tab-stops: 40.85pt 426.1pt;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><o:p> </o:p></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">4)<span style="mso-tab-count: 1;"> </span>A life insurance policy is for the
purpose of sustaining public interest.<span style="mso-spacerun: yes;">
</span>For example, the purpose of a life insurance policy is to protect the
orphans, widows, and other dependents of the assured from future material risk
and thus, it is a transaction to be justified by the doctrine of <i>Masaleh
al-Mursalah</i> (public interest).<span style="mso-spacerun: yes;"> </span>A
transaction which is in the public interest is lawful, because it eliminates
hardship and assists a comfortable life for human beings which in line with the
<i>Qur’anic</i> injunction:<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><o:p> </o:p></span><i><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;">“</span></i><span dir="LTR"></span><i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";"><span dir="LTR"></span>...All</span></i><i><span lang="EN-US" style="font-size: 11pt;">ā</span></i><i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";">h
(SWT) intends every facilities (inter alia comfortable life) for you; He does
not want to put you to difficulties...</span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;"><span dir="RTL"></span>”</span></i><a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn80" name="_ftnref80" style="mso-footnote-id: ftn80;" title=""><span class="MsoFootnoteReference"><i><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[80]</span></span></b></span><!--[endif]--></span></span></i></span></a><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";"><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; tab-stops: 40.85pt 426.1pt;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><o:p> </o:p></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">5)<span style="mso-tab-count: 1;"> </span>A life insurance is not a gain or
hoping for a chance, but it is a policy for providing compensation for damage
or loss.<span style="mso-spacerun: yes;"> </span>This is because the policy is
an agreement between the insurer and the assured that, once the assured dies
within the policy period, the insurer will pay an amount of money in
consideration of paid-premiums to the beneficiary(s) of the assured.<span style="mso-spacerun: yes;"> </span>Such a payment is like a compensation for the
loss of opportunity of future earning by the breadwinner (assured) due to his
death.<span style="mso-spacerun: yes;"> </span>To provide such compensation is
like a mutual cooperation, which is commanded by <i>Allah (SWT)</i>.<o:p></o:p></span></div>
<br />
<div align="center" class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: center;">
<span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;"><span dir="RTL"></span>"</span></i><span dir="LTR"></span><i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";"><span dir="LTR"></span>... Cooperate one another in righteousness and piety...</span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;"><span dir="RTL"></span>”</span></i><a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn81" name="_ftnref81" style="mso-footnote-id: ftn81;" title=""><span class="MsoFootnoteReference"><i><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[81]</span></span></b></span><!--[endif]--></span></span></i></span></a><i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";"><o:p></o:p></span></i></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; tab-stops: 40.85pt 426.1pt;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><o:p> </o:p></span><span lang="EN-US"><span style="mso-list: Ignore;">6)<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><!--[endif]--><span dir="LTR"></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">A life insurance policy is similar
to a retirement pension scheme.<span style="mso-spacerun: yes;"> </span><i>Al-Zarqa</i>
and <i>al-Alwan</i> apparently discovered that all contemporary scholars agreed
on the validity of retirement pension scheme.<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn82" name="_ftnref82" style="mso-footnote-id: ftn82;" title=""><span class="MsoFootnoteReference"><span style="font-family: "Times New Roman","serif"; mso-bidi-font-family: "Traditional Arabic";"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[82]</span></span></span><!--[endif]--></span></span></span></a><span style="mso-spacerun: yes;"> </span><i>Adil Salahi</i> similarly acknowledged
that<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt 18pt; text-align: justify;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><o:p> </o:p></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><span style="mso-spacerun: yes;"> </span></span><span dir="RTL"></span><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>“</span><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">All scholars and
seats of Islamic learning approved of the concept of pension because it gives
the subscriber security for himself and his Family in the difficult
circumstances of his leaving work or in case of death.</span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>”</span></i><a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn83" name="_ftnref83" style="mso-footnote-id: ftn83;" title=""><span class="MsoFootnoteReference"><i><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[83]</span></span></b></span><!--[endif]--></span></span></i></span></a><span dir="LTR"></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><span dir="LTR"></span><span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt 18pt; text-align: justify;">
<i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">Salahi</span></i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"> relying on his
acknowledgement poses the question: <o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt 18pt; text-align: justify;">
<i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><span style="mso-spacerun: yes;"> </span>“Why should Family security be lawful in one
system and not in the other when the method of operation is practically the
same?<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn84" name="_ftnref84" style="mso-footnote-id: ftn84;" title=""><span class="MsoFootnoteReference"><span style="font-family: "Times New Roman","serif"; mso-bidi-font-family: "Traditional Arabic";"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[84]</span></span></b></span><!--[endif]--></span></span></span></a></span></i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"> <o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt 18pt; text-align: justify;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><o:p> </o:p></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><span style="mso-spacerun: yes;"> </span>Relying on the above justifications it is
admitted here that life insurance is like a retirement pension scheme (which had
been widely introduced during the period of <i>Sayiidana Omar (r.a)</i>
therefore, it is not unlawful transaction.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; tab-stops: 40.85pt 426.1pt;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><o:p> </o:p></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">7)<span style="mso-tab-count: 1;"> </span>A life insurance policy is also
justified based on the principle of necessity (<i>Darurah)</i>.<span style="mso-spacerun: yes;"> </span>For example, it is an important task for the
guardian to work for the welfare of his own dependents.<span style="mso-spacerun: yes;"> </span>It is in line with the tradition of the <i>Holy
Prophet (SAW)</i> where he<i> </i>said to the effect:<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 18.45pt 0pt 33.15pt; text-align: justify;">
<span dir="RTL"></span><i><span dir="RTL" lang="EN-US" style="font-size: 11pt; mso-ansi-language: EN-GB;"><span dir="RTL"></span><span style="mso-spacerun: yes;"> </span></span></i><i><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;">“</span></i><span dir="LTR"></span><i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";"><span dir="LTR"></span>...It is better for you to leave<span style="mso-spacerun: yes;">
</span>your off-spring wealthy than to leave them poor, asking others for
help...</span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;"><span dir="RTL"></span>”</span></i><a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn85" name="_ftnref85" style="mso-footnote-id: ftn85;" title=""><span class="MsoFootnoteReference"><i><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[85]</span></span></b></span><!--[endif]--></span></span></i></span></a><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";"><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><o:p> </o:p></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">It is also to be
noted here that in the case of necessity that which is prohibited is also to be
permitted in the Islamic discipline as <i>Ibn Nawjeem</i> stated in his book <i>al-Ashbah
Wa al-Nazaira</i>,<o:p></o:p></span></div>
<br />
<div align="center" class="MsoNormal" dir="RTL" style="direction: rtl; margin: 0cm 0cm 0pt; text-align: center; unicode-bidi: embed;">
<i><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;">“</span></i><i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";">Necessity permits an unlawful act.</span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;"><span dir="RTL"></span>”</span></i><a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn86" name="_ftnref86" style="mso-footnote-id: ftn86;" title=""><span class="MsoFootnoteReference"><i><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[86]</span></span></b></span><!--[endif]--></span></span></i></span></a><i><span style="font-size: 11pt; mso-ansi-language: EN-GB; mso-bidi-font-family: "Traditional Arabic";"><o:p></o:p></span></i></div>
<br />
<div align="center" class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: center;">
<i><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><o:p> </o:p></span></i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">A life insurance
policy of course does not allow for an unlawful transaction, but why not, the
principle of necessity allows it to be permissible.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">8)<span style="mso-tab-count: 1;"> </span>A life insurance contract is a binding
promise.<span style="mso-spacerun: yes;"> </span>In the light of Islamic jurisprudence,
a promise either unilateral or bilateral, is in both situations binding as
ordained in the <i>Holy Qur’an</i>:<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><o:p> </o:p></span><i><span dir="RTL" lang="EN-US" style="font-size: 11pt; mso-ansi-language: EN-GB;"><span style="mso-spacerun: yes;"> </span></span></i><i><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;">“</span></i><i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";">O
ye who believe?<span style="mso-spacerun: yes;"> </span>Fulfill all agreements</span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;"><span dir="RTL"></span>”</span></i><a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn87" name="_ftnref87" style="mso-footnote-id: ftn87;" title=""><span class="MsoFootnoteReference"><i><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[87]</span></span></b></span><!--[endif]--></span></span></i></span></a><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";"><o:p></o:p></span></div>
<br />
<div align="center" class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: center;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">According to <i>Imam
Malik (r.a)</i>, the founder of the <st1:place w:st="on"><st1:placename w:st="on"><i>Maliki</i></st1:placename><i>
</i><st1:placetype w:st="on">School</st1:placetype></st1:place> of law, every
binding promise is lawful, therefore, every insurance contract contains a
binding promise and thus it is lawful.<span style="mso-spacerun: yes;">
</span>In other words, in a life insurance contract, there is an agreement
between the assured and the insurer which is a binding promise towards the
protection of widows, orphans and so on, from future material risk, and
therefore such a binding promise makes a insurance contract valid.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">9)<span style="mso-tab-count: 1;"> </span>A life insurance contract evolves
elements of donation.<span style="mso-spacerun: yes;"> </span>This is because
the assured pays regular premiums for the protection of his (beneficiary(s);
such payments of premium is like a donation for helpless people.<span style="mso-spacerun: yes;"> </span>Moreover, once the insurer pays an amount of
money together with an additional amount from the charitable fund to the beneficiary(s)
of the assured in consideration of the paid premiums this also involves element
of donation.<span style="mso-spacerun: yes;"> </span>A donation is lawful in the
Islamic jurisprudence as justified by the practices of the <i>Prophet (SAW)</i>:<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="mso-ansi-language: EN-GB;"><span dir="RTL"></span>“</span></i><i><span lang="EN-US" style="font-size: 11pt; mso-bidi-font-family: "Traditional Arabic";">The Prophet (SAW) used to accept
presents (donation)</span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="font-size: 11pt; mso-ansi-language: EN-GB;"><span dir="RTL"></span>”</span></i><a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftn88" name="_ftnref88" style="mso-footnote-id: ftn88;" title=""><span class="MsoFootnoteReference"><i><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[88]</span></span></b></span><!--[endif]--></span></span></i></span></a><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><o:p> </o:p></span><span lang="EN-US">Relying on the above authenticity, it is
analytically admitted here that a life insurance policy does involve elements
of donation and therefore, such a policy is to be held lawful in the eyes of
the Islamic discipline</span></div>
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 11pt; font-style: normal;"></span><br />
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 11pt; font-style: normal;">FINAL SUBMISSION<o:p></o:p></span><br />
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">Analysis concludes
that convention and Islam design different models of life insurance
policies.<span style="mso-spacerun: yes;"> </span>There are many similarities in
both systems but both also diversify.<span style="mso-spacerun: yes;"> </span>In
conclusion, I would like to summarize where the conventional and Islamic model
are in contrast.<span style="mso-spacerun: yes;"> </span>Finally, I wish to
express a hope for the future application of the Islamic life insurance
policy.<span style="mso-spacerun: yes;"> </span>To summarize the results of the
research:<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><o:p> </o:p></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">1)<span style="mso-tab-count: 1;"> </span>A life insurance policy under the
Islamic model is a different one from the one, which is operated under the
conventional system.<span style="mso-spacerun: yes;"> </span>A life insurance
policy under the conventional system involves, <i>inter alia</i>, <i>Rib</i></span><i><span lang="EN-US">ā</span></i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">
opposed to the principles of <i>M</i></span><i><span lang="EN-US">ī</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">rath</span></i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"> and <i>Wasiyah</i>,
payments of agents to be out of the paid premiums, etc.<span style="mso-spacerun: yes;"> </span>In contrast, a life insurance policy under
the Islamic model is like a pension scheme, which is operated based on the
principles of the <i>al Mudh</i></span><i><span lang="EN-US">ā</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">rabah</span></i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"> financing
techniques, does not clash with the principles of <i>M</i></span><i><span lang="EN-US">ī</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">rath</span></i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"> and <i>Wasiyah</i>,
as highlighted earlier, and also the payments for the agents to be paid by the
insurer out of the profit made over the paid premiums.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; tab-stops: 40.85pt 426.1pt; text-align: justify;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"><o:p> </o:p></span><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">2. <span style="mso-tab-count: 1;"> </span>The insurable interest in life under the
conventional system is to be vested to those who are not necessarily to be the
heirs of the assured.<span style="mso-spacerun: yes;"> </span>In contrast, an
insurable interest in life under the Islamic model should be vested to only
those who are entitled to the property of the assured according to the
principles of <i>M</i></span><i><span lang="EN-US">ī</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">rath</span></i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"> and W<i>asiyah</i>.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; tab-stops: 40.85pt 426.1pt; text-align: justify;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">3.<span style="mso-tab-count: 1;"> </span>The nominee(s) under the conventional
system is an absolute beneficiary over the policy, whereas the nominee(s) under
the Islamic model of a life insurance policy is nothing more than a trustee(s)
who is responsible for receiving the benefits over the policy and distributing
them among the heirs of the assured according to the principles of <i>M</i></span><i><span lang="EN-US">ī</span></i><i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">rath</span></i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";"> and <i>Wasiyah</i>.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">Analysis throughout the
research and the summary show that a life insurance policy under the Islamic
model is different from the one which is operated under the conventional
system.<span style="mso-spacerun: yes;"> </span>Hence, I would like to extend my
humble request to the respectable <i>Ulam</i></span><i><span lang="EN-US">ā</span></i><span lang="EN-US" style="mso-bidi-font-family: "Traditional Arabic";">, who oppose a
life insurance policy generally, that they could oppose the conventional life
insurance but not the one, which is designed under the Islamic model.<span style="mso-spacerun: yes;"> </span>It is my sincere hope that this article might
enable the Muslim <i>Ummah</i> to have no further doubt on the application of
an Islamic life insurance policy.<span style="mso-spacerun: yes;">
</span>Islamic scholars could come up with a better model as an alternative to
the existing life insurance operated under the conventional system for the
noble purpose of ensuring further economic growth in contemporary Muslim
society.</span><span lang="EN-US"> </span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="color: #6aa84f;"><b><span lang="EN-US">Prof. Dr. Mohd. Ma’sum Billah<span style="mso-spacerun: yes;">
</span><span style="mso-spacerun: yes;"><span style="color: blue;"> </span></span></span></b></span><i><span lang="EN-US"><span style="color: blue;">www.drmasumbillah.blogspot.com</span></span></i></div>
<br />
<div style="mso-element: footnote-list;">
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<div id="ftn1" style="mso-element: footnote;">
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<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref1" name="_ftn1" style="mso-footnote-id: ftn1;" title=""><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; mso-bidi-font-family: "Traditional Arabic";"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[1]</span></span></span><!--[endif]--></span></span></span></a><span style="font-size: x-small;"><span lang="EN-US"> </span><span dir="RTL"></span></span><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ansi-language: EN-GB; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="RTL"></span><span style="font-size: x-small;">‘</span></span><span style="font-size: x-small;"><i><span lang="EN-US">Fatwa</span></i><span dir="RTL"></span></span><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ansi-language: EN-GB; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="RTL"></span><span style="font-size: x-small;">’</span></span><span dir="LTR"></span><span lang="EN-US"><span dir="LTR"></span><span style="font-size: x-small;">, issued by </span><i><span style="font-size: x-small;">The
National Council for Muslims Religious Affairs in Malaysia</span></i><span style="font-size: x-small;">, see in [1974] I
MLJ at x.</span></span><span style="mso-ansi-language: EN-GB;"><o:p></o:p></span></div>
</div>
<div id="ftn2" style="mso-element: footnote;">
<div class="MsoFootnoteText" style="direction: ltr; margin: 0cm 0cm 0pt; text-align: left; unicode-bidi: embed;">
<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref2" name="_ftn2" style="mso-footnote-id: ftn2;" title=""><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; mso-bidi-font-family: "Traditional Arabic";"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[2]</span></span></span><!--[endif]--></span></span></span></a><span lang="EN-US"><span style="font-size: x-small;"> See Billah, M. Masum,</span><span style="mso-spacerun: yes;"><span style="font-size: x-small;"> </span></span><span style="font-size: x-small;">“Life
Insurance? An Islamic View”, in </span><i><span style="font-size: x-small;">ALQ</span></i><span style="font-size: x-small;">, 8 : 4, 1993 at 319.</span></span></div>
</div>
<div id="ftn3" style="mso-element: footnote;">
<div class="MsoFootnoteText" style="direction: ltr; margin: 0cm 0cm 0pt; text-align: left; unicode-bidi: embed;">
<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref3" name="_ftn3" style="mso-footnote-id: ftn3;" title=""><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; mso-bidi-font-family: "Traditional Arabic";"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[3]</span></span></span><!--[endif]--></span></span></span></a><span lang="EN-US"><span style="font-size: x-small;"> </span><i><span style="font-size: x-small;">Al-Qur’an</span></i><span style="font-size: x-small;">, at ch. 3:145</span></span><span style="mso-ansi-language: EN-GB;"><o:p></o:p></span></div>
</div>
<div id="ftn4" style="mso-element: footnote;">
<div class="MsoFootnoteText" style="direction: ltr; margin: 0cm 0cm 0pt; text-align: left; unicode-bidi: embed;">
<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref4" name="_ftn4" style="mso-footnote-id: ftn4;" title=""><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; mso-bidi-font-family: "Traditional Arabic";"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[4]</span></span></span><!--[endif]--></span></span></span></a><span lang="EN-US"><span style="font-size: x-small;"> </span><st1:place w:st="on"><st1:state w:st="on"><i><span style="font-size: x-small;">Id.</span></i></st1:state></st1:place><i><span style="font-size: x-small;">,</span></i><span style="font-size: x-small;">
at 2:134</span></span><span style="mso-ansi-language: EN-GB;"><o:p></o:p></span></div>
</div>
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<div class="MsoFootnoteText" style="direction: ltr; margin: 0cm 0cm 0pt; text-align: left; unicode-bidi: embed;">
<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref5" name="_ftn5" style="mso-footnote-id: ftn5;" title=""><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; mso-bidi-font-family: "Traditional Arabic";"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[5]</span></span></span><!--[endif]--></span></span></span></a><span lang="EN-US"><span style="font-size: x-small;"> </span><i><span style="font-size: x-small;">Sahih al-Bukhari</span></i><span style="font-size: x-small;"> (trans. </span><st1:place w:st="on"><st1:country-region w:st="on"><span style="font-size: x-small;">Eng.</span></st1:country-region></st1:place><span style="font-size: x-small;">) Dr. Mohd. Muhsin Khan, Vol.
8, Kazi Publications, </span><st1:place w:st="on"><st1:city w:st="on"><span style="font-size: x-small;">Lahore</span></st1:city><span style="font-size: x-small;">,
</span><st1:country-region w:st="on"><span style="font-size: x-small;">Pakistan</span></st1:country-region></st1:place><span style="font-size: x-small;">, 1979,
no. 725, at p. 477</span></span><span style="mso-ansi-language: EN-GB;"><o:p></o:p></span></div>
</div>
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<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref6" name="_ftn6" style="mso-footnote-id: ftn6;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[6]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><st1:place w:st="on"><st1:state w:st="on"><i><span lang="EN-US"><span style="font-size: x-small;">Id</span></span></i><span lang="EN-US"><span style="font-size: x-small;">.</span></span></st1:state></st1:place><span lang="EN-US"><span style="font-size: x-small;">, at no. 35</span></span></div>
</div>
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<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref7" name="_ftn7" style="mso-footnote-id: ftn7;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[7]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="font-size: x-small;"> </span><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><st1:place w:st="on"><st1:state w:st="on"><i><span lang="EN-US"><span style="font-size: x-small;">Id.</span></span></i></st1:state></st1:place><i><span lang="EN-US"><span style="font-size: x-small;">,</span></span></i><span lang="EN-US"><span style="font-size: x-small;"> at No. 34</span></span></div>
</div>
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<div class="MsoFootnoteText" style="direction: ltr; margin: 0cm 0cm 0pt 35.45pt; text-align: justify; text-indent: -35.45pt; unicode-bidi: embed;">
<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref8" name="_ftn8" style="mso-footnote-id: ftn8;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[8]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><i><span lang="EN-US"><span style="font-size: x-small;">Sahih
Muslim</span></span></i><span lang="EN-US"><span style="font-size: x-small;"> as compiled in al-Nawawi, </span><i><span style="font-size: x-small;">Forty Hadith</span></i><span style="font-size: x-small;">
(trans. Eng) Ezzeddin Ibrahim, </span><i><span style="font-size: x-small;">et. al</span></i><span style="font-size: x-small;">. I.I.F.S.O., 1985 at no. 36.</span></span></div>
</div>
<div id="ftn9" style="mso-element: footnote;">
<div class="MsoFootnoteText" style="direction: ltr; margin: 0cm 0cm 0pt 35.45pt; text-align: justify; text-indent: -35.45pt; unicode-bidi: embed;">
<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref9" name="_ftn9" style="mso-footnote-id: ftn9;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[9]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="font-size: x-small;"> </span><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><i><span lang="EN-US"><span style="font-size: x-small;">Al-Qur’an</span></span></i><span lang="EN-US"><span style="font-size: x-small;">, at ch. 2:201</span></span></div>
</div>
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<div class="MsoFootnoteText" style="direction: ltr; margin: 0cm 0cm 0pt; text-align: justify; unicode-bidi: embed;">
<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref10" name="_ftn10" style="mso-footnote-id: ftn10;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[10]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="font-size: x-small;"> </span><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><i><span lang="EN-US"><span style="font-size: x-small;">Al-Qur’an,
</span></span></i><span lang="EN-US"><span style="font-size: x-small;">at ch. 5:2.</span></span></div>
</div>
<div id="ftn11" style="mso-element: footnote;">
<div class="MsoFootnoteText" style="direction: ltr; margin: 0cm 0cm 0pt; text-align: justify; unicode-bidi: embed;">
<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref11" name="_ftn11" style="mso-footnote-id: ftn11;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[11]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><st1:place w:st="on"><st1:state w:st="on"><i><span lang="EN-US"><span style="font-size: x-small;">Id</span></span></i><span lang="EN-US"><span style="font-size: x-small;">.</span></span></st1:state></st1:place><span lang="EN-US"><span style="font-size: x-small;">, at ch. 2:185</span></span></div>
</div>
<div id="ftn12" style="mso-element: footnote;">
<div class="MsoFootnoteText" style="direction: ltr; margin: 0cm 0cm 0pt 35.45pt; text-align: justify; text-indent: -35.45pt; unicode-bidi: embed;">
<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref12" name="_ftn12" style="mso-footnote-id: ftn12;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[12]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><span lang="EN-US"><span style="font-size: x-small;">Mufti
Mawlana Mohd. </span></span><span lang="FR" style="mso-ansi-language: FR;"><span style="font-size: x-small;">Shafi, </span><i><span style="font-size: x-small;">Bima
Zindegi</span></i><span style="font-size: x-small;">, (trans. </span></span><span lang="EN-US"><span style="font-size: x-small;">Eng) Anwar Ahmed Meenai, </span><i><span style="font-size: x-small;">Life
Insurance</span></i><span style="font-size: x-small;">, Darul Ishat, </span><st1:place w:st="on"><st1:city w:st="on"><span style="font-size: x-small;">Karachi</span></st1:city></st1:place><span style="font-size: x-small;">,
1995, at 36.</span></span></div>
</div>
<div id="ftn13" style="mso-element: footnote;">
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<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref13" name="_ftn13" style="mso-footnote-id: ftn13;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[13]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="font-size: x-small;"> </span><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><span dir="LTR"></span><span lang="EN-US"><span dir="LTR"></span><span style="font-size: x-small;">(1965) 2, MLJ at 1</span></span></div>
</div>
<div id="ftn14" style="mso-element: footnote;">
<div class="MsoFootnoteText" style="direction: ltr; margin: 0cm 0cm 0pt; text-align: justify; unicode-bidi: embed;">
<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref14" name="_ftn14" style="mso-footnote-id: ftn14;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[14]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><span lang="EN-US"><span style="font-size: x-small;">See also in
Billah, M. Masum, </span><i><span style="font-size: x-small;">op. cit.</span></i><span style="font-size: x-small;">, at 319.</span></span></div>
</div>
<div id="ftn15" style="mso-element: footnote;">
<div class="MsoFootnoteText" style="direction: ltr; margin: 0cm 0cm 0pt; text-align: justify; unicode-bidi: embed;">
<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref15" name="_ftn15" style="mso-footnote-id: ftn15;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[15]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><i><span lang="EN-US"><span style="font-size: x-small;">Ibid.</span></span></i></div>
</div>
<div id="ftn16" style="mso-element: footnote;">
<div class="MsoFootnoteText" style="direction: ltr; margin: 0cm 0cm 0pt; text-align: justify; unicode-bidi: embed;">
<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref16" name="_ftn16" style="mso-footnote-id: ftn16;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[16]</span></span></span><!--[endif]--></span></span></span></a><span style="font-size: x-small;"><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="mso-tab-count: 1;"> </span></span><span dir="LTR"></span></span><span lang="EN-US"><span dir="LTR"></span><span style="font-size: x-small;">[1970] PLD 783.</span></span></div>
</div>
<div id="ftn17" style="mso-element: footnote;">
<div class="MsoFootnoteText" style="direction: ltr; margin: 0cm 0cm 0pt; text-align: justify; unicode-bidi: embed;">
<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref17" name="_ftn17" style="mso-footnote-id: ftn17;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[17]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><span lang="EN-US"><span style="font-size: x-small;">Billah, M.
Masum, </span><i><span style="font-size: x-small;">op. cit.</span></i><span style="font-size: x-small;">, at 319</span></span></div>
</div>
<div id="ftn18" style="mso-element: footnote;">
<div class="MsoFootnoteText" style="direction: ltr; margin: 0cm 0cm 0pt; text-align: justify; unicode-bidi: embed;">
<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref18" name="_ftn18" style="mso-footnote-id: ftn18;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[18]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><span style="font-size: x-small;"><span lang="EN-US">The </span><span dir="RTL"></span></span><i><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="RTL"></span><span style="font-size: x-small;">‘</span></span><span lang="EN-US"><span style="font-size: x-small;">fatwa</span></span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="RTL"></span><span style="font-size: x-small;">’</span></span></i><span dir="LTR"></span><span lang="EN-US"><span dir="LTR"></span><span style="font-size: x-small;"> was on </span><i><span style="font-size: x-small;">succession and
wills</span></i><span style="font-size: x-small;">, (1974) IMLJ at X</span></span></div>
</div>
<div id="ftn19" style="mso-element: footnote;">
<div class="MsoFootnoteText" style="direction: ltr; margin: 0cm 0cm 0pt; text-align: justify; unicode-bidi: embed;">
<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref19" name="_ftn19" style="mso-footnote-id: ftn19;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[19]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="font-size: x-small;"> </span><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><span lang="EN-US"><span style="font-size: x-small;">Billah, M.
Masum, </span><i><span style="font-size: x-small;">op. cit.</span></i><span style="font-size: x-small;">, at 324</span></span></div>
</div>
<div id="ftn20" style="mso-element: footnote;">
<div class="MsoFootnoteText" style="direction: ltr; margin: 0cm 0cm 0pt; text-align: justify; unicode-bidi: embed;">
<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref20" name="_ftn20" style="mso-footnote-id: ftn20;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[20]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="font-size: x-small;"> </span><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><i><span lang="EN-US"><span style="font-size: x-small;">Al-Qur’an</span></span></i><span lang="EN-US"><span style="font-size: x-small;">, 5:2.</span></span></div>
</div>
<div id="ftn21" style="mso-element: footnote;">
<div class="MsoFootnoteText" style="direction: ltr; margin: 0cm 0cm 0pt 35.45pt; text-align: justify; text-indent: -35.45pt; unicode-bidi: embed;">
<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref21" name="_ftn21" style="mso-footnote-id: ftn21;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="font-size: 9pt; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 9pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[21]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><span lang="EN-US"><span style="font-size: x-small;">See in
Khuan, Lee Kam, </span><i><span style="font-size: x-small;">Life Insurance in Malaysia</span></i><span style="font-size: x-small;">, life insurance association
of </span><st1:country-region w:st="on"><span style="font-size: x-small;">Malaysia</span></st1:country-region><span style="font-size: x-small;">, </span><st1:place w:st="on"><st1:city w:st="on"><span style="font-size: x-small;">Kuala Lumpur</span></st1:city></st1:place><span style="font-size: x-small;">, 1986 at 63</span></span></div>
</div>
<div id="ftn22" style="mso-element: footnote;">
<div class="MsoFootnoteText" style="direction: ltr; margin: 0cm 0cm 0pt; text-align: justify; unicode-bidi: embed;">
<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref22" name="_ftn22" style="mso-footnote-id: ftn22;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="font-size: 9pt; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 9pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[22]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><st1:place w:st="on"><st1:state w:st="on"><i><span lang="EN-US"><span style="font-size: x-small;">Id</span></span></i><span lang="EN-US"><span style="font-size: x-small;">.</span></span></st1:state></st1:place><span lang="EN-US"><span style="font-size: x-small;">, at 69f</span></span></div>
</div>
<div id="ftn23" style="mso-element: footnote;">
<div class="MsoFootnoteText" style="direction: ltr; margin: 0cm 0cm 0pt; text-align: justify; unicode-bidi: embed;">
<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref23" name="_ftn23" style="mso-footnote-id: ftn23;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="font-size: 9pt; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 9pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[23]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><span lang="EN-US"><span style="font-size: x-small;">Billah, </span><i><span style="font-size: x-small;">op.
cit.</span></i><span style="font-size: x-small;">, at 319, and (1970) PLD 683</span></span></div>
</div>
<div id="ftn24" style="mso-element: footnote;">
<div class="MsoFootnoteText" style="direction: ltr; margin: 0cm 0cm 0pt 35.45pt; text-align: justify; text-indent: -35.45pt; unicode-bidi: embed;">
<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref24" name="_ftn24" style="mso-footnote-id: ftn24;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[24]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="font-size: x-small;"> </span><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><i><span lang="EN-US"><span style="font-size: x-small;">Sunan
Al-Tirmidi</span></span></i><span lang="EN-US"><span style="font-size: x-small;">, Cagri Yayianlari, Istanbul Vol. 4,
1981, in </span><i><span style="font-size: x-small;">Kitabu Sifatul Qiyamat Wal-Raqaiq Al-Wara</span></i><span style="font-size: x-small;">, Bab 60, NO. 2517 at
668</span></span></div>
</div>
<div id="ftn25" style="mso-element: footnote;">
<div class="MsoFootnoteText" style="direction: ltr; margin: 0cm 0cm 0pt 35.45pt; text-align: justify; text-indent: -35.45pt; unicode-bidi: embed;">
<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref25" name="_ftn25" style="mso-footnote-id: ftn25;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[25]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="font-size: x-small;"> </span><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><span style="font-size: x-small;"><span lang="EN-US">See Adil
Salahi, </span><span dir="RTL"></span></span><i><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="RTL"></span><span style="font-size: x-small;">‘</span></span><span lang="EN-US"><span style="font-size: x-small;">Is Life Insurance Haram?</span></span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="RTL"></span><span style="font-size: x-small;">”</span></span></i><span dir="LTR"></span><span lang="EN-US"><span dir="LTR"></span><span style="font-size: x-small;"> in New Horizon, </span><i><span style="font-size: x-small;">Islamic
Banking and Insurance</span></i><span style="font-size: x-small;">, Nov. 1995 no. 45 at 12</span></span></div>
</div>
<div id="ftn26" style="mso-element: footnote;">
<div class="MsoFootnoteText" style="direction: ltr; margin: 0cm 0cm 0pt; text-align: justify; unicode-bidi: embed;">
<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref26" name="_ftn26" style="mso-footnote-id: ftn26;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[26]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="font-size: x-small;"> </span><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><i><span lang="EN-US"><span style="font-size: x-small;">Ibid.</span></span></i></div>
</div>
<div id="ftn27" style="mso-element: footnote;">
<div class="MsoFootnoteText" style="direction: ltr; margin: 0cm 0cm 0pt; text-align: justify; unicode-bidi: embed;">
<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref27" name="_ftn27" style="mso-footnote-id: ftn27;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[27]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><span lang="EN-US"><span style="font-size: x-small;">See Billah, </span><i><span style="font-size: x-small;">op.
cit.</span></i><span style="font-size: x-small;">, at 319; and (1970) PLD 683</span></span></div>
</div>
<div id="ftn28" style="mso-element: footnote;">
<div class="MsoFootnoteText" style="direction: ltr; margin: 0cm 0cm 0pt; text-align: justify; unicode-bidi: embed;">
<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref28" name="_ftn28" style="mso-footnote-id: ftn28;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[28]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><span lang="EN-US"><span style="font-size: x-small;">See in Billah,
M. Masum, </span><i><span style="font-size: x-small;">loc. cit.</span></i><span style="font-size: x-small;">, at 315</span></span></div>
</div>
<div id="ftn29" style="mso-element: footnote;">
<div class="MsoFootnoteText" style="direction: ltr; margin: 0cm 0cm 0pt 35.45pt; text-align: justify; text-indent: -35.45pt; unicode-bidi: embed;">
<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref29" name="_ftn29" style="mso-footnote-id: ftn29;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[29]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><span style="font-size: x-small;"><span lang="EN-US">See in
Siddiqi, M.N., </span><span dir="RTL"></span></span><i><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="RTL"></span><span style="font-size: x-small;">“</span></span><span lang="EN-US"><span style="font-size: x-small;">Muslim Economic Thinking:</span><span style="mso-spacerun: yes;"><span style="font-size: x-small;"> </span></span><span style="font-size: x-small;">A
Survey of Contemporary Literature</span></span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="RTL"></span><span style="font-size: x-small;">”</span></span></i><span dir="LTR"></span><span lang="EN-US"><span dir="LTR"></span><span style="font-size: x-small;">, (Ed.) Ahmad, Khurshid,
in </span><i><span style="font-size: x-small;">Studies in Islamic Economics</span></i><span style="font-size: x-small;">, The Islamic </span><st1:place w:st="on"><st1:city w:st="on"><span style="font-size: x-small;">Foundation</span></st1:city><span style="font-size: x-small;">, </span><st1:country-region w:st="on"><span style="font-size: x-small;">U.K.</span></st1:country-region></st1:place><span style="font-size: x-small;">
1980 at 2116.</span><span style="mso-spacerun: yes;"><span style="font-size: x-small;"> </span></span><span style="font-size: x-small;">Also see </span></span><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="RTL"></span><span style="font-size: x-small;">“</span></span><span lang="EN-US"><span style="font-size: x-small;">Al-Tameen Alal Hayat Gaire jaizin Shar</span></span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="RTL"></span><span style="font-size: x-small;">’</span></span><span lang="EN-US"><span style="font-size: x-small;">an</span></span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="RTL"></span><span style="font-size: x-small;">”</span></span></i><span dir="LTR"></span><span lang="EN-US"><span dir="LTR"></span><span style="font-size: x-small;"> in </span><i><span style="font-size: x-small;">Al-Iqtasadul
Islami,</span></i><span style="font-size: x-small;"> July 1995 at 60, and also see Hadagha, Refat Mohd., </span></span><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="RTL"></span><span style="font-size: x-small;">‘</span></span><span lang="EN-US"><span style="font-size: x-small;">Insurance Contract and Its Provision in
the Islamic Shari’ah</span></span></i><span dir="RTL"></span><i><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="RTL"></span><span style="font-size: x-small;">’</span></span><span dir="LTR"></span><span lang="EN-US"><span dir="LTR"></span><span style="font-size: x-small;">,</span></span></i><span lang="EN-US"><span style="font-size: x-small;"> IIU Malaysia, (U.P.), 1995, at 17.</span></span></div>
</div>
<div id="ftn30" style="mso-element: footnote;">
<div class="MsoFootnoteText" style="direction: ltr; margin: 0cm 0cm 0pt; text-align: justify; unicode-bidi: embed;">
<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref30" name="_ftn30" style="mso-footnote-id: ftn30;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[30]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="font-size: x-small;"> </span><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><i><span lang="FR" style="mso-ansi-language: FR;"><span style="font-size: x-small;">Al-Iqtisadul Islami, loc. cit</span></span></i></div>
</div>
<div id="ftn31" style="mso-element: footnote;">
<div class="MsoFootnoteText" style="direction: ltr; margin: 0cm 0cm 0pt; text-align: justify; unicode-bidi: embed;">
<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref31" name="_ftn31" style="mso-footnote-id: ftn31;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[31]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><i><span lang="EN-US"><span style="font-size: x-small;">Al-Tarmidi</span></span></i><span lang="EN-US"><span style="font-size: x-small;">, as quoted by Al-Sheikh Jad al-Haq in </span><i><span style="font-size: x-small;">Al-Iqtisadul Islami, loc.
cit</span></i></span></div>
</div>
<div id="ftn32" style="mso-element: footnote;">
<div class="MsoFootnoteText" style="direction: ltr; margin: 0cm 0cm 0pt; text-align: justify; unicode-bidi: embed;">
<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref32" name="_ftn32" style="mso-footnote-id: ftn32;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="font-size: 9pt; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 9pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[32]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="font-size: x-small;"> </span><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><span lang="EN-US"><span style="font-size: x-small;">Al-Shaikh
Jad-al-Haq, </span><i><span style="font-size: x-small;">loc. cit</span></i></span></div>
</div>
<div id="ftn33" style="mso-element: footnote;">
<div class="MsoFootnoteText" style="direction: ltr; margin: 0cm 0cm 0pt; text-align: justify; unicode-bidi: embed;">
<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref33" name="_ftn33" style="mso-footnote-id: ftn33;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="font-size: 9pt; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 9pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[33]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="font-size: x-small;"> </span><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><i><span lang="EN-US"><span style="font-size: x-small;">Hadagha,
op.cit., </span></span></i><span lang="EN-US"><span style="font-size: x-small;">at 39f</span></span></div>
</div>
<div id="ftn34" style="mso-element: footnote;">
<div class="MsoFootnoteText" style="direction: ltr; margin: 0cm 0cm 0pt; text-align: justify; unicode-bidi: embed;">
<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref34" name="_ftn34" style="mso-footnote-id: ftn34;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="font-size: 9pt; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 9pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[34]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="font-size: x-small;"> </span><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><i><span lang="EN-US"><span style="font-size: x-small;">Al-Qur’an</span></span></i><span lang="EN-US"><span style="font-size: x-small;"> at ch. 2:275</span></span></div>
</div>
<div id="ftn35" style="mso-element: footnote;">
<div class="MsoFootnoteText" style="direction: ltr; margin: 0cm 0cm 0pt; text-align: justify; unicode-bidi: embed;">
<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref35" name="_ftn35" style="mso-footnote-id: ftn35;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[35]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="font-size: x-small;"> </span><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><i><span lang="EN-US"><span style="font-size: x-small;">Al-Qur’an</span></span></i><span lang="EN-US"><span style="font-size: x-small;"> at ch. 31:34</span></span></div>
</div>
<div id="ftn36" style="mso-element: footnote;">
<div class="MsoFootnoteText" style="direction: ltr; margin: 0cm 0cm 0pt; text-align: justify; unicode-bidi: embed;">
<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref36" name="_ftn36" style="mso-footnote-id: ftn36;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[36]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><span lang="EN-US"><span style="font-size: x-small;">It was held
in a </span><i><span style="font-size: x-small;">Juridical Conference</span></i><span style="font-size: x-small;"> held in </span><st1:place w:st="on"><st1:city w:st="on"><i><span style="font-size: x-small;">Mecca</span></i></st1:city></st1:place><span style="font-size: x-small;">
in Saban, 1398H.</span></span></div>
</div>
<div id="ftn37" style="mso-element: footnote;">
<div class="MsoFootnoteText" style="direction: ltr; margin: 0cm 0cm 0pt 35.45pt; text-align: justify; text-indent: -35.45pt; unicode-bidi: embed;">
<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref37" name="_ftn37" style="mso-footnote-id: ftn37;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="font-size: 9pt; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 9pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[37]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span><span style="font-size: x-small;"> </span></span><span lang="EN-US"><span style="font-size: x-small;">As quoted
in Idoi, A.Rahman, </span><i><span style="font-size: x-small;">Shariah:</span><span style="mso-spacerun: yes;"><span style="font-size: x-small;"> </span></span><span style="font-size: x-small;">The
Islamic Law</span></i><span style="font-size: x-small;">, A.S. Noordeen, Kuala Lumpur, 1984 at 359.</span></span></div>
</div>
<div id="ftn38" style="mso-element: footnote;">
<div class="MsoFootnoteText" style="direction: ltr; margin: 0cm 0cm 0pt 35.45pt; text-align: justify; text-indent: -35.45pt; unicode-bidi: embed;">
<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref38" name="_ftn38" style="mso-footnote-id: ftn38;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="font-size: 9pt; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 9pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[38]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><span lang="EN-US"><span style="font-size: x-small;">Musleh
Uddin, M. </span><i><span style="font-size: x-small;">Insurance and Islamic Law</span></i><span style="font-size: x-small;">, 3</span><sup><span style="font-size: x-small;">rd</span></sup><span style="font-size: x-small;"> ed. Islamic
Publications Ltd., </span><st1:place w:st="on"><st1:city w:st="on"><span style="font-size: x-small;">Lahore</span></st1:city></st1:place><span style="font-size: x-small;">,
1979 at 143.</span></span></div>
</div>
<div id="ftn39" style="mso-element: footnote;">
<div class="MsoFootnoteText" style="direction: ltr; margin: 0cm 0cm 0pt; text-align: justify; unicode-bidi: embed;">
<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref39" name="_ftn39" style="mso-footnote-id: ftn39;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="font-size: 9pt; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 9pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[39]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="font-size: x-small;"> </span><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><i><span lang="EN-US"><span style="font-size: x-small;">Al-Qur’an</span></span></i><span lang="EN-US"><span style="font-size: x-small;"> at ch. 2:219</span></span></div>
</div>
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<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref40" name="_ftn40" style="mso-footnote-id: ftn40;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[40]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><st1:place w:st="on"><st1:state w:st="on"><i><span lang="EN-US"><span style="font-size: x-small;">Id.</span></span></i></st1:state></st1:place><i><span lang="EN-US"><span style="font-size: x-small;">,</span></span></i><span lang="EN-US"><span style="font-size: x-small;"> at ch. 14:12</span></span></div>
</div>
<div id="ftn41" style="mso-element: footnote;">
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<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref41" name="_ftn41" style="mso-footnote-id: ftn41;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[41]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><span lang="EN-US"><span style="font-size: x-small;">See
generally in Billah, M. Masum, </span><i><span style="font-size: x-small;">op. cit., </span></i><span style="mso-spacerun: yes;"><span style="font-size: x-small;"> </span></span><span style="font-size: x-small;">at 316</span></span></div>
</div>
<div id="ftn42" style="mso-element: footnote;">
<div class="MsoFootnoteText" style="direction: ltr; margin: 0cm 0cm 0pt; text-align: justify; unicode-bidi: embed;">
<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref42" name="_ftn42" style="mso-footnote-id: ftn42;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[42]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="font-size: x-small;"> </span><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><i><span lang="FR" style="mso-ansi-language: FR;"><span style="font-size: x-small;">Al-Iqtisadl-Islami., supra</span></span></i></div>
</div>
<div id="ftn43" style="mso-element: footnote;">
<div class="MsoFootnoteText" style="direction: ltr; margin: 0cm 0cm 0pt; text-align: justify; unicode-bidi: embed;">
<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref43" name="_ftn43" style="mso-footnote-id: ftn43;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[43]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><i><span lang="EN-US"><span style="font-size: x-small;">Ibid.</span></span></i></div>
</div>
<div id="ftn44" style="mso-element: footnote;">
<div class="MsoFootnoteText" style="direction: ltr; margin: 0cm 0cm 0pt; text-align: justify; unicode-bidi: embed;">
<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref44" name="_ftn44" style="mso-footnote-id: ftn44;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[44]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><i><span lang="EN-US"><span style="font-size: x-small;">Ibid.</span></span></i></div>
</div>
<div id="ftn45" style="mso-element: footnote;">
<div class="MsoFootnoteText" style="direction: ltr; margin: 0cm 0cm 0pt; text-align: justify; unicode-bidi: embed;">
<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref45" name="_ftn45" style="mso-footnote-id: ftn45;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[45]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><i><span lang="EN-US"><span style="font-size: x-small;">Ibid.</span></span></i></div>
</div>
<div id="ftn46" style="mso-element: footnote;">
<div class="MsoFootnoteText" style="direction: ltr; margin: 0cm 0cm 0pt; text-align: justify; unicode-bidi: embed;">
<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref46" name="_ftn46" style="mso-footnote-id: ftn46;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[46]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><i><span lang="EN-US"><span style="font-size: x-small;">Ibid.</span></span></i></div>
</div>
<div id="ftn47" style="mso-element: footnote;">
<div class="MsoFootnoteText" style="direction: ltr; margin: 0cm 0cm 0pt; text-align: justify; unicode-bidi: embed;">
<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref47" name="_ftn47" style="mso-footnote-id: ftn47;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[47]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><span lang="EN-US"><span style="font-size: x-small;">As quoted in
</span><i><span style="font-size: x-small;">Ibid.</span></i></span></div>
</div>
<div id="ftn48" style="mso-element: footnote;">
<div class="MsoFootnoteText" style="direction: ltr; margin: 0cm 0cm 0pt; text-align: justify; unicode-bidi: embed;">
<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref48" name="_ftn48" style="mso-footnote-id: ftn48;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[48]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span><span style="font-size: x-small;"> </span></span><i><span lang="FR" style="mso-ansi-language: FR;"><span style="font-size: x-small;">Al-Iqtisadul Islami, supra</span></span></i></div>
</div>
<div id="ftn49" style="mso-element: footnote;">
<div class="MsoFootnoteText" style="direction: ltr; margin: 0cm 0cm 0pt; text-align: justify; unicode-bidi: embed;">
<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref49" name="_ftn49" style="mso-footnote-id: ftn49;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[49]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><span lang="EN-US"><span style="font-size: x-small;">The
principle is at 5:2 of the </span><i><span style="font-size: x-small;">Holy Qur’an</span></i></span></div>
</div>
<div id="ftn50" style="mso-element: footnote;">
<div class="MsoFootnoteText" style="direction: ltr; margin: 0cm 0cm 0pt; text-align: justify; unicode-bidi: embed;">
<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref50" name="_ftn50" style="mso-footnote-id: ftn50;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[50]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span><span style="font-size: x-small;"> </span></span><span lang="EN-US"><span style="font-size: x-small;">See in </span><i><span style="font-size: x-small;">al-Iqtisadul
Islami</span></i><span style="font-size: x-small;">, </span><i><span style="font-size: x-small;">supra</span></i></span></div>
</div>
<div id="ftn51" style="mso-element: footnote;">
<div class="MsoFootnoteText" style="direction: ltr; margin: 0cm 0cm 0pt; text-align: justify; unicode-bidi: embed;">
<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref51" name="_ftn51" style="mso-footnote-id: ftn51;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[51]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="font-size: x-small;"> </span><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><i><span lang="EN-US"><span style="font-size: x-small;">Sahih
al-Bukhari</span></span></i><span lang="EN-US"><span style="font-size: x-small;">, op. cit., Vol. III at no. 275</span></span></div>
</div>
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<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref52" name="_ftn52" style="mso-footnote-id: ftn52;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[52]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><st1:place w:st="on"><st1:state w:st="on"><i><span lang="EN-US"><span style="font-size: x-small;">Id</span></span></i><span lang="EN-US"><span style="font-size: x-small;">.</span></span></st1:state></st1:place><span lang="EN-US"><span style="font-size: x-small;">, at no. 35</span></span></div>
</div>
<div id="ftn53" style="mso-element: footnote;">
<div class="MsoFootnoteText" style="direction: ltr; margin: 0cm 0cm 0pt; text-align: justify; unicode-bidi: embed;">
<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref53" name="_ftn53" style="mso-footnote-id: ftn53;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[53]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><span lang="EN-US"><span style="font-size: x-small;">See in </span><i><span style="font-size: x-small;">Al-Iqtisadul
Islami, supra</span></i></span></div>
</div>
<div id="ftn54" style="mso-element: footnote;">
<div class="MsoFootnoteText" style="direction: ltr; margin: 0cm 0cm 0pt; text-align: justify; unicode-bidi: embed;">
<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref54" name="_ftn54" style="mso-footnote-id: ftn54;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[54]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><i><span lang="EN-US"><span style="font-size: x-small;">Sunan
al-Tirmidi, supra</span></span></i></div>
</div>
<div id="ftn55" style="mso-element: footnote;">
<div class="MsoFootnoteText" style="direction: ltr; margin: 0cm 0cm 0pt; text-align: justify; unicode-bidi: embed;">
<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref55" name="_ftn55" style="mso-footnote-id: ftn55;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[55]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="font-size: x-small;"> </span><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><span lang="EN-US"><span style="font-size: x-small;">See in </span><i><span style="font-size: x-small;">Al-Iqtisdadul
Islami, supra</span></i></span></div>
</div>
<div id="ftn56" style="mso-element: footnote;">
<div class="MsoFootnoteText" style="direction: ltr; margin: 0cm 0cm 0pt; text-align: justify; unicode-bidi: embed;">
<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref56" name="_ftn56" style="mso-footnote-id: ftn56;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[56]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="font-size: x-small;"> </span><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><i><span lang="EN-US"><span style="font-size: x-small;">al-Qur’an</span></span></i><span lang="EN-US"><span style="font-size: x-small;">, at ch. 5:2</span></span></div>
</div>
<div id="ftn57" style="mso-element: footnote;">
<div class="MsoFootnoteText" style="direction: ltr; margin: 0cm 0cm 0pt; text-align: justify; unicode-bidi: embed;">
<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref57" name="_ftn57" style="mso-footnote-id: ftn57;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[57]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="font-size: x-small;"> </span><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><st1:place w:st="on"><st1:state w:st="on"><i><span lang="EN-US"><span style="font-size: x-small;">Id.</span></span></i></st1:state></st1:place><i><span lang="EN-US"><span style="font-size: x-small;">, </span></span></i><span lang="EN-US"><span style="font-size: x-small;">at ch. 3:185</span></span></div>
</div>
<div id="ftn58" style="mso-element: footnote;">
<div class="MsoFootnoteText" style="direction: ltr; margin: 0cm 0cm 0pt; text-align: justify; unicode-bidi: embed;">
<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref58" name="_ftn58" style="mso-footnote-id: ftn58;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[58]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="font-size: x-small;"> </span><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><i><span lang="EN-US"><span style="font-size: x-small;">Sahih
al-Muslim</span></span></i><span lang="EN-US"><span style="font-size: x-small;">, as compiled in An Nawari, </span><i><span style="font-size: x-small;">Riyadus
Saleheen</span></i><span style="font-size: x-small;">, Vol. No. 245</span></span></div>
</div>
<div id="ftn59" style="mso-element: footnote;">
<div class="MsoFootnoteText" style="direction: ltr; margin: 0cm 0cm 0pt; text-align: justify; unicode-bidi: embed;">
<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref59" name="_ftn59" style="mso-footnote-id: ftn59;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[59]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="font-size: x-small;"> </span><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><i><span lang="EN-US"><span style="font-size: x-small;">al-Qur’an</span></span></i><span lang="EN-US"><span style="font-size: x-small;">, at ch. 5:2</span></span></div>
</div>
<div id="ftn60" style="mso-element: footnote;">
<div class="MsoFootnoteText" style="direction: ltr; margin: 0cm 0cm 0pt; text-align: justify; unicode-bidi: embed;">
<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref60" name="_ftn60" style="mso-footnote-id: ftn60;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[60]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="font-size: x-small;"> </span><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><span lang="EN-US"><span style="font-size: x-small;">Al-Zarqa,
Mustafa, </span><i><span style="font-size: x-small;">Nizam Al-Tameen</span></i><span style="font-size: x-small;">, </span><st1:place w:st="on"><st1:city w:st="on"><span style="font-size: x-small;">Beirut</span></st1:city></st1:place><span style="font-size: x-small;">,
1984</span></span></div>
</div>
<div id="ftn61" style="mso-element: footnote;">
<div class="MsoFootnoteText" style="direction: ltr; margin: 0cm 0cm 0pt; text-align: justify; unicode-bidi: embed;">
<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref61" name="_ftn61" style="mso-footnote-id: ftn61;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[61]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><span lang="EN-US"><span style="font-size: x-small;">The
principle is at 5:2 of </span><i><span style="font-size: x-small;">The Holy Qur’an</span></i></span></div>
</div>
<div id="ftn62" style="mso-element: footnote;">
<div class="MsoFootnoteText" style="direction: ltr; margin: 0cm 0cm 0pt; text-align: justify; unicode-bidi: embed;">
<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref62" name="_ftn62" style="mso-footnote-id: ftn62;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[62]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><span lang="EN-US"><span style="font-size: x-small;">Al-Dareer
Sideeq, </span><st1:city w:st="on"><i><span style="font-size: x-small;">Al-Gharar</span></i></st1:city><i><span style="font-size: x-small;"> </span><st1:state w:st="on"><span style="font-size: x-small;">Wa</span></st1:state><span style="font-size: x-small;">
al-atharohu fi al-Oqud</span></i><span style="font-size: x-small;">, </span><st1:place w:st="on"><st1:city w:st="on"><span style="font-size: x-small;">Beirut</span></st1:city></st1:place><span style="font-size: x-small;">,
1990 at 649</span></span></div>
</div>
<div id="ftn63" style="mso-element: footnote;">
<div class="MsoFootnoteText" style="direction: ltr; margin: 0cm 0cm 0pt; text-align: justify; unicode-bidi: embed;">
<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref63" name="_ftn63" style="mso-footnote-id: ftn63;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[63]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="font-size: x-small;"> </span><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><i><span lang="EN-US"><span style="font-size: x-small;">Sunan
At-Tirmidi, supra</span></span></i></div>
</div>
<div id="ftn64" style="mso-element: footnote;">
<div class="MsoFootnoteText" style="direction: ltr; margin: 0cm 0cm 0pt; text-align: justify; unicode-bidi: embed;">
<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref64" name="_ftn64" style="mso-footnote-id: ftn64;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[64]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="font-size: x-small;"> </span><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><span lang="EN-US"><span style="font-size: x-small;">See in
Billah, M. Masum, </span><i><span style="font-size: x-small;">op. cit.</span></i><span style="font-size: x-small;">, at 319</span></span></div>
</div>
<div id="ftn65" style="mso-element: footnote;">
<div class="MsoFootnoteText" style="direction: ltr; margin: 0cm 0cm 0pt 35.45pt; text-align: justify; text-indent: -35.45pt; unicode-bidi: embed;">
<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref65" name="_ftn65" style="mso-footnote-id: ftn65;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[65]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="font-size: x-small;"> </span><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><span lang="EN-US"><span style="font-size: x-small;">See the
Judgement of the Supreme Court of Pakistan in </span><i><span style="font-size: x-small;">Amtul Habeeb v Musarrat
Parveen</span></i><span style="font-size: x-small;">, [1974] PLD 185</span></span></div>
</div>
<div id="ftn66" style="mso-element: footnote;">
<div class="MsoFootnoteText" style="direction: ltr; margin: 0cm 0cm 0pt 35.45pt; text-align: justify; text-indent: -35.45pt; unicode-bidi: embed;">
<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref66" name="_ftn66" style="mso-footnote-id: ftn66;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[66]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="font-size: x-small;"> </span><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><span lang="EN-US"><span style="font-size: x-small;">This
principle has been laid down in a </span><i><span style="font-size: x-small;">fatwa</span></i><span style="font-size: x-small;"> issued by the </span><i><span style="font-size: x-small;">National
Council of Muslim Religious Affairs</span></i><span style="font-size: x-small;">, </span><st1:place w:st="on"><st1:country-region w:st="on"><span style="font-size: x-small;">Malaysia</span></st1:country-region></st1:place><span style="font-size: x-small;">.</span><span style="mso-spacerun: yes;"><span style="font-size: x-small;"> </span></span><span style="font-size: x-small;">See in [1974] IMLJ at X.</span></span></div>
</div>
<div id="ftn67" style="mso-element: footnote;">
<div class="MsoFootnoteText" style="direction: ltr; margin: 0cm 0cm 0pt; text-align: justify; unicode-bidi: embed;">
<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref67" name="_ftn67" style="mso-footnote-id: ftn67;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[67]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="font-size: x-small;"> </span><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><span lang="EN-US"><span style="font-size: x-small;">See in </span><i><span style="font-size: x-small;">al-Iqtisadul
Islami, supra</span></i></span></div>
</div>
<div id="ftn68" style="mso-element: footnote;">
<div class="MsoFootnoteText" style="direction: ltr; margin: 0cm 0cm 0pt; text-align: justify; unicode-bidi: embed;">
<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref68" name="_ftn68" style="mso-footnote-id: ftn68;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[68]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="font-size: x-small;"> </span><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><span lang="EN-US"><span style="font-size: x-small;">Abu Jaib,
Saeed, </span><i><span style="font-size: x-small;">Al-Tameen binal Hazeer </span><st1:city w:st="on"><span style="font-size: x-small;">Wal Ebaha</span></st1:city></i><span style="font-size: x-small;">, </span><st1:country-region w:st="on"><span style="font-size: x-small;">Syria</span></st1:country-region><span style="font-size: x-small;"> </span><st1:place w:st="on"><st1:city w:st="on"><span style="font-size: x-small;">Darul
Fikir</span></st1:city><span style="font-size: x-small;">, </span><st1:country-region w:st="on"><span style="font-size: x-small;">Syria</span></st1:country-region></st1:place><span style="font-size: x-small;">
1983 at 36</span></span></div>
</div>
<div id="ftn69" style="mso-element: footnote;">
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<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref69" name="_ftn69" style="mso-footnote-id: ftn69;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[69]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><i><span lang="EN-US"><span style="font-size: x-small;">Al-Qur’an
</span></span></i><span lang="EN-US"><span style="font-size: x-small;">at ch. 5:2</span></span></div>
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<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref70" name="_ftn70" style="mso-footnote-id: ftn70;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[70]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><i><span lang="EN-US"><span style="font-size: x-small;">Sahih
al-Bukhari, op. cit., a</span></span></i><span lang="EN-US"><span style="font-size: x-small;">t no. 34.</span></span></div>
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<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref71" name="_ftn71" style="mso-footnote-id: ftn71;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[71]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="font-size: x-small;"> </span><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><i><span lang="EN-US"><span style="font-size: x-small;">Sahih
al-Muslim, supra</span></span></i></div>
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<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref72" name="_ftn72" style="mso-footnote-id: ftn72;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[72]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="font-size: x-small;"> </span><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><i><span lang="EN-US"><span style="font-size: x-small;">Sahih
al-Bukhari, op. cit. </span></span></i><span lang="EN-US"><span style="font-size: x-small;">At no. 35</span></span></div>
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<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref73" name="_ftn73" style="mso-footnote-id: ftn73;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[73]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><st1:place w:st="on"><st1:state w:st="on"><i><span lang="EN-US"><span style="font-size: x-small;">Id.</span></span></i></st1:state></st1:place><i><span lang="EN-US"><span style="font-size: x-small;">, </span></span></i><span lang="EN-US"><span style="mso-spacerun: yes;"><span style="font-size: x-small;"> </span></span><span style="font-size: x-small;">at 725</span></span></div>
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<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref74" name="_ftn74" style="mso-footnote-id: ftn74;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[74]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="font-size: x-small;"> </span><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><i><span lang="FR" style="mso-ansi-language: FR;"><span style="font-size: x-small;">Al-Iqtisadul Islami, supra</span></span></i></div>
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<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref75" name="_ftn75" style="mso-footnote-id: ftn75;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[75]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="font-size: x-small;"> </span><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><i><span lang="EN-US"><span style="font-size: x-small;">Sunan
al-Tirmidi, </span></span></i><span lang="EN-US"><span style="font-size: x-small;">as quoted in </span><i><span style="font-size: x-small;">Ibid</span></i><span style="font-size: x-small;">.</span></span></div>
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<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref76" name="_ftn76" style="mso-footnote-id: ftn76;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[76]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="font-size: x-small;"> </span><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><span lang="EN-US"><span style="font-size: x-small;">Al-Zobydi,
Mohammad, </span><i><span style="font-size: x-small;">Tajul Aroos</span></i><span style="font-size: x-small;">, Vol. 2, </span><st1:place w:st="on"><st1:country-region w:st="on"><span style="font-size: x-small;">Kuwait</span></st1:country-region></st1:place><span style="font-size: x-small;">, 1967 at 591</span></span></div>
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<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref77" name="_ftn77" style="mso-footnote-id: ftn77;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[77]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><i><span lang="FR" style="mso-ansi-language: FR;"><span style="font-size: x-small;">Al-Qur’an</span></span></i><span lang="FR" style="mso-ansi-language: FR;"><span style="font-size: x-small;">, ch. 4:58</span></span></div>
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<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref78" name="_ftn78" style="mso-footnote-id: ftn78;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[78]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="font-size: x-small;"> </span><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><span lang="EN-US"><span style="font-size: x-small;">Ibn Qudama, </span><i><span style="font-size: x-small;">Rawdatul
Nazir</span></i><span style="font-size: x-small;"> (nd.) at 85</span></span></div>
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<div class="MsoFootnoteText" style="direction: ltr; margin: 0cm 0cm 0pt 35.45pt; text-align: justify; text-indent: -35.45pt; unicode-bidi: embed;">
<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref79" name="_ftn79" style="mso-footnote-id: ftn79;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[79]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="font-size: x-small;"> </span><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><span lang="EN-US"><span style="font-size: x-small;">Al-Zarqa,
Mustafa, </span><i><span style="font-size: x-small;">op. cit</span></i><span style="font-size: x-small;">., at 60 also Alwan, Abdullah, </span><i><span style="font-size: x-small;">Akhamal Islam fi
al-Tameen</span></i><span style="font-size: x-small;">, </span><st1:place w:st="on"><st1:country-region w:st="on"><span style="font-size: x-small;">Egypt</span></st1:country-region></st1:place><span style="font-size: x-small;">,
1987 at 12.</span></span></div>
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<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref80" name="_ftn80" style="mso-footnote-id: ftn80;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[80]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="font-size: x-small;"> </span><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><i><span lang="FR" style="mso-ansi-language: FR;"><span style="font-size: x-small;">Al-Qur’an</span></span></i><span lang="FR" style="mso-ansi-language: FR;"><span style="font-size: x-small;"> ch. 2:185</span></span></div>
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<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref81" name="_ftn81" style="mso-footnote-id: ftn81;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[81]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><i><span lang="FR" style="mso-ansi-language: FR;"><span style="font-size: x-small;">Al-Qur’an </span></span></i><span lang="FR" style="mso-ansi-language: FR;"><span style="mso-spacerun: yes;"><span style="font-size: x-small;"> </span></span><span style="font-size: x-small;">ch. 5:2</span></span></div>
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<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref82" name="_ftn82" style="mso-footnote-id: ftn82;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[82]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><span lang="EN-US"><span style="font-size: x-small;">Al-Zarqa, </span><i><span style="font-size: x-small;">op.
cit</span></i><span style="font-size: x-small;">., at 62.</span><span style="mso-spacerun: yes;"><span style="font-size: x-small;"> </span></span><span style="font-size: x-small;">See also al-Alwan, </span><i><span style="font-size: x-small;">op.
cit. at 13</span></i></span></div>
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<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref83" name="_ftn83" style="mso-footnote-id: ftn83;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[83]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><span lang="EN-US"><span style="font-size: x-small;">Salahi,
Adil, </span><i><span style="font-size: x-small;">supra</span></i></span></div>
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<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref84" name="_ftn84" style="mso-footnote-id: ftn84;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[84]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="font-size: x-small;"> </span><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><i><span lang="EN-US"><span style="font-size: x-small;">Ibid.</span></span></i></div>
</div>
<div id="ftn85" style="mso-element: footnote;">
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<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref85" name="_ftn85" style="mso-footnote-id: ftn85;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[85]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><i><span lang="EN-US"><span style="font-size: x-small;">Sahih al-Bukhari</span></span></i><span lang="EN-US"><span style="font-size: x-small;">, </span><i><span style="font-size: x-small;">op. cit., at no </span></i><span style="mso-spacerun: yes;"><span style="font-size: x-small;"> </span></span><span style="font-size: x-small;">725</span></span></div>
</div>
<div id="ftn86" style="mso-element: footnote;">
<div class="MsoFootnoteText" style="direction: ltr; margin: 0cm 0cm 0pt; text-align: justify; unicode-bidi: embed;">
<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref86" name="_ftn86" style="mso-footnote-id: ftn86;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[86]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><span lang="EN-US"><span style="font-size: x-small;">Ibn Najeem, </span><i><span style="font-size: x-small;">op.
cit., </span></i><span style="mso-spacerun: yes;"><span style="font-size: x-small;"> </span></span><span style="font-size: x-small;">at 84</span></span></div>
</div>
<div id="ftn87" style="mso-element: footnote;">
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<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref87" name="_ftn87" style="mso-footnote-id: ftn87;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[87]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="font-size: x-small;"> </span><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><i><span lang="FR" style="mso-ansi-language: FR;"><span style="font-size: x-small;">Al-Qur’an</span></span></i><span lang="FR" style="mso-ansi-language: FR;"><span style="font-size: x-small;">, Ch. 5:1</span></span></div>
</div>
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<a href="https://www.blogger.com/blogger.g?blogID=7101557101807536516#_ftnref88" name="_ftn88" style="mso-footnote-id: ftn88;" title=""><span class="MsoFootnoteReference"><span dir="RTL" lang="AR-SA" style="mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span dir="LTR" style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Traditional Arabic"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: blue;">[88]</span></span></span><!--[endif]--></span></span></span></a><span dir="RTL" lang="AR-SA" style="font-family: "Traditional Arabic","serif"; mso-ascii-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";"><span style="font-size: x-small;"> </span><span style="mso-tab-count: 1;"><span style="font-size: x-small;"> </span></span></span><span lang="EN-US"><span style="font-size: x-small;">Al-Sanany,
Mohammad, </span><i><span style="font-size: x-small;">Subul Al-Salam</span></i><span style="font-size: x-small;">, Vol. 1-3, 1987 at 90</span></span></div>
</div>
</div>
Mohd. Ma'sum Billahhttp://www.blogger.com/profile/14029507777590329011noreply@blogger.com0tag:blogger.com,1999:blog-7101557101807536516.post-88540790616256289012014-05-06T22:27:00.001-07:002014-05-06T22:27:07.475-07:00Evolution of Islamic Finance in the 21st Century
<b><span lang="EN-US" style="font-family: "Arial","sans-serif"; font-size: 14pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: Batang;"><span style="color: #38761d;">Preview<o:p></o:p></span></span></b><br />
<br />
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<span lang="EN-US" style="font-family: "Arial","sans-serif"; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: Batang;">Today, the market segment of Islamic
financial products and regulations are no longer confined within a limited
territory, but are in the borderless world of the Web, having exposure to
almost all groups of people worldwide. The market mechanisms adopted by the
potential marketers include dynamic strategies and mechanisms of governance to
match the applied global phenomena, where both Muslim and non-Muslim are
equally participating to market Islamic financial products with promising
results. <o:p></o:p></span></div>
<br />
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<span lang="EN-US" style="font-family: "Arial","sans-serif"; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: Batang;"><o:p> T</o:p></span><span lang="EN-US" style="font-family: "Arial","sans-serif"; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: Batang;">he promising arena of Islamic
corporate application and governance has caught the attention of both Muslims
and non-Muslims, with equal participation in establishing and offering
competitive and sound Islamic financial products. Resulting from this
phenomenon, besides having almost 300 entities of full fledged Islamic
financial providers in today’s world, almost all conventional potential players
are also offering Islamic financial products through the establishment of
segregated windows and divisions respectively, by adapting suitable mechanisms
of Shari’ah compliance.<o:p></o:p></span></div>
<br />
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<span lang="EN-US" style="font-family: "Arial","sans-serif"; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: Batang;"><o:p> </o:p></span><span lang="EN-US" style="font-family: "Arial","sans-serif"; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: Batang;">Numerous options of <i style="mso-bidi-font-style: normal;">Shari’ah</i> justified instruments are in
fact being applied by product specialists and technical experts in Islamic
financial industries, who are developing competitive Islamic financial products
with innovative cultural and dynamic corporate outcomes. As a result, these
products for investors, customers and bankers are paving the way for Islamic
financial industries. The products are designed not only to satisfy retail
groups, but also corporate levels. If such dynamic product innovation
continues, the growth rate of Islamic financial business, considering the
historical rate, may reach to 40 to 50 percent by the year 2020. <o:p></o:p></span></div>
<br />
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<span lang="EN-US" style="font-family: "Arial","sans-serif"; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: Batang;">But such an achievement certainly and
rationally requires rediscovery of mechanisms for product innovation, culture
of products review, review of professionalism, and improving the relevant
policies, regulations and governing standard with ethical guidelines, as these
shall not be denied in any sector of the Islamic industrial movement.<o:p></o:p></span></div>
<br />
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<span lang="EN-US" style="font-family: "Arial","sans-serif"; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: Batang;">Strategic planning for every move of
Islamic financial industry is of utmost importance to ensure smooth and
successful growth of the industry. Strategic planning should be consolidated
with dynamic actions. For this exercise, it is essential to ensure the presence
of experts in: <i style="mso-bidi-font-style: normal;">Shari’ah</i>,
decision-making, technical, operational or /and marketing avenues, along with
proper professionalism and rightful performance justified by <i style="mso-bidi-font-style: normal;">Shari’ah</i> standard.<o:p></o:p></span></div>
<br />
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<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Arial","sans-serif"; font-size: 14pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: Batang;"><span style="color: #38761d;">Resurgence
of Islamic Finance in the Modern Reality</span> <o:p></o:p></span></b></div>
<br />
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<span lang="EN-US" style="font-family: "Arial","sans-serif"; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: Batang;">The modern growth of the Islamic financial
industry began in <st1:country-region w:st="on">Egypt</st1:country-region> and
the Arab world, while <st1:country-region w:st="on"><st1:place w:st="on">Malaysia</st1:place></st1:country-region>
caught the wave in the early 80s and subsequently, we have seen a rapid gradual
development through both the Muslim and non-Muslim world. Due to the present
phenomena of development and dynamic offerings of applied Islamic financial
products, <st1:country-region w:st="on">Malaysia</st1:country-region>, <st1:country-region w:st="on"><st1:place w:st="on">Bahrain</st1:place></st1:country-region> and UAE
play the top-ranking roles in the global Islamic financial market. <o:p></o:p></span></div>
<br />
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<span lang="EN-US" style="font-family: "Arial","sans-serif"; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: Batang;"><o:p> </o:p></span><span lang="EN-US" style="color: black; font-family: "Arial","sans-serif";">Applied Islamic financial
sectors have developed into a global dimension, which is highly dynamic and
growing rapidly with utmost appreciated by not only among 1.8 billion of
Muslim, but also by non-Muslim across the today’s world, which leads the Halal
industries and Islamic financial market to stand as an able alternative to the
conventional ones with sustainable existence for all. <o:p></o:p></span></div>
<br />
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<span lang="EN-US" style="color: black; font-family: "Arial","sans-serif";"><o:p> </o:p></span><span lang="EN-US" style="color: black; font-family: "Arial","sans-serif";">The global Halal
industries, Islamic financial market and Shari’ah compliant industries,
activities and markets reach to a value of trillions in dollar.<span style="mso-spacerun: yes;"> </span>There are almost 400 Islamic financial
institutions worldwide. According to the Global Islamic Finance Report -2013
(GIFR) the global Islamic Finance Market value indicated at US$ 1.631
trillions, with its growth rate estimated to be around 20.4 %<span style="mso-spacerun: yes;"> </span>p.a.<strong><span style="font-family: "Arial","sans-serif";">
<o:p></o:p></span></strong></span></div>
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<strong><span lang="EN-US" style="color: black; font-family: "Arial","sans-serif";"><o:p> </o:p></span></strong><strong><span lang="EN-US" style="color: black; font-family: "Arial","sans-serif"; font-weight: normal;">Among
the master players of Islamic finance in the contemporary world are the Middle
East, Malaysia, Iran, Indonesia, Brunei, Singapore, North America, Pakistan,
Bangladesh, South-West Africa and the U.K. The cliental of Islamic financial
institutions are not confined to Muslim countries but are spread over Europe,
the U.S.A, South Asia, South East Asia, Asia Pacific and the Far East.</span></strong><span lang="EN-US" style="color: black; font-family: "Arial","sans-serif";"> Providers are
not confined to local institutions as global players increasingly playing
major roles in the industry today by aiming the global appreciation from all
regardless of the issue of one’s religion, color, culture or status.<o:p></o:p></span></div>
<br />
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<span lang="EN-US" style="font-family: "Arial","sans-serif"; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: Batang;">Apart from the existing world players,
the next wave of industrial growth can be predicted from the non-Muslim world
with a reasonable participation. Among those countries may be <st1:country-region w:st="on">Singapore</st1:country-region>, <st1:country-region w:st="on">England</st1:country-region>,
<st1:city w:st="on">Hong Kong</st1:city>, <st1:country-region w:st="on">Germany</st1:country-region>,
<st1:country-region w:st="on">Canada</st1:country-region>, <st1:country-region w:st="on">Russia</st1:country-region>, <st1:country-region w:st="on">Australia</st1:country-region>,
<st1:country-region w:st="on">China</st1:country-region>, <st1:country-region w:st="on">Japan</st1:country-region>, and <st1:country-region w:st="on"><st1:place w:st="on">South Africa</st1:place></st1:country-region>. It may be anticipated
that, in the next 7 to 10 years, Islamic financial products with required
Shari’ah regulatory frameworks may attract almost 60-65 percent of the total
financial industries globally, offering Islamic financial products to both
Muslims and non-Muslims with beneficial results.<o:p></o:p></span></div>
<br />
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<span lang="EN-US" style="color: black; font-family: "Arial","sans-serif";">It is widely accepted that
the adaptation of the <i style="mso-bidi-font-style: normal;">Shari’ah</i>
compliant financial paradigm is one of the fastest growing areas of the
international banking and finance in reality. The forecasts predict that there
will be significant growth in this sector over the next five to ten years.
However, this growth is dependent on successful risk management,
professionalism, product innovation, regulatory frameworks, marketing
strategies, research and discovery and customer satisfaction that all
professionals, regulators, practitioners, customers and participants of the
banking -financial industry must attend to. All these can be achieved only
through the appropriate knowledge, information and exercises.<o:p></o:p></span></div>
<br />
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<b><span lang="EN-US" style="color: black; font-family: "Arial","sans-serif"; font-size: 14pt; mso-fareast-language: EN-GB;"><span style="color: #38761d;">Rational
Outlook of the Sustainable Growth of Islamic Finance<o:p></o:p></span></span></b></div>
<br />
<div class="MsoNormal" style="background: white; margin: 0cm 0cm 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span lang="EN-US" style="color: black; font-family: "Arial","sans-serif"; mso-fareast-language: EN-GB;">It is not simply a religious ground,
but also socio-eco-cultural and other logistic, authentic and hypothetical
reasons, which undeniably justify a sustainable growth of Islamic finance with
promising track record. Thus, among the rational outlook of the growth of
Islamic finance in the modern reality are pointed out by <i>www.theborneopost.com</i>
as follows: <o:p></o:p></span></div>
<br />
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<b><i><span lang="EN-US" style="color: black; font-family: "Arial","sans-serif"; mso-fareast-language: EN-GB;"><span style="color: #ea9999;">Mutual Cooperation
with Risk Sharing Culture<o:p></o:p></span></span></i></b></div>
<br />
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<span lang="EN-US" style="color: black; font-family: "Arial","sans-serif"; mso-fareast-language: EN-GB;">Islamic finance is not a mere product,
but a holistic integrated system for all mankind <span style="mso-spacerun: yes;"> </span>based on the Divine principle of Mutual
cooperation with risk sharing culture for the legitimate benefit of all,
irrespective of one’s religious background, race, color, gender, status or
nationality. (See <i>al-Qur’an</i> 5:2)<o:p></o:p></span></div>
<br />
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<b><i><span lang="EN-US" style="color: black; font-family: "Arial","sans-serif"; mso-fareast-language: EN-GB;"><span style="color: #e06666;">Green Financing
Platform</span></span></i></b><i><span lang="EN-US" style="color: black; font-family: "Arial","sans-serif"; mso-fareast-language: EN-GB;"><o:p></o:p></span></i></div>
<br />
<div class="MsoNormal" style="background: white; margin: 0cm 0cm 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span lang="EN-US" style="color: black; font-family: "Arial","sans-serif"; mso-fareast-language: EN-GB;">Islamic finance offers the ideal
platform to boost ‘green financing’ and promote SRI (social responsibility
investment). As Shari’ah rules prohibit participation in businesses involving
alcohol, pork, and gambling, Islamic banks only support businesses that adhere
to ethical and moral nature values when it comes to investments.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="background: white; margin: 0cm 0cm 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<b><i><span lang="EN-US" style="color: black; font-family: "Arial","sans-serif"; mso-fareast-language: EN-GB;"><span style="color: #e06666;">Shari’ah-Compliant
Products</span></span></i></b><i><span lang="EN-US" style="color: black; font-family: "Arial","sans-serif"; mso-fareast-language: EN-GB;"><o:p></o:p></span></i></div>
<br />
<div class="MsoNormal" style="background: white; margin: 0cm 0cm 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span lang="EN-US" style="color: black; font-family: "Arial","sans-serif"; mso-fareast-language: EN-GB;">Demand for Shari’ah-compliant products
continues to rise alongside a growing Muslim population. Muslims predicted to
account for more than 25 per cent of the world population in 2013, growing
twice as fast as the world’s non-Muslim population. Islamic banks address this
group’s need and natural inclination to prefer Shari’ah-compliant financial
products.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="background: white; margin: 0cm 0cm 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<b><i><span lang="EN-US" style="color: black; font-family: "Arial","sans-serif"; mso-fareast-language: EN-GB;"><span style="color: #e06666;">Fast and Steady
Growth</span></span></i></b><i><span lang="EN-US" style="color: black; font-family: "Arial","sans-serif"; mso-fareast-language: EN-GB;"><o:p></o:p></span></i></div>
<br />
<div class="MsoNormal" style="background: white; margin: 0cm 0cm 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span lang="EN-US" style="color: black; font-family: "Arial","sans-serif"; mso-fareast-language: EN-GB;">The Islamic financing industry is
growing 50 per cent faster than conventional banking. As of 2011, the global
asset value of the Islamic finance industry is estimated to be at US$1
trillion. The figure is expected to reach US$5 trillion over the next five
years. Indeed, there is no stopping the fast growth of Islamic banking with
Islamic banks setting up shop in countries under the Gulf Cooperation Council
(GCC), Malaysia, the UK, and even in Africa along with many other regions.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="background: white; margin: 0cm 0cm 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<b><i><span lang="EN-US" style="color: black; font-family: "Arial","sans-serif"; mso-fareast-language: EN-GB;"><span style="color: #e06666;">Attracts
Non-Muslim investors</span></span></i></b><i><span lang="EN-US" style="color: black; font-family: "Arial","sans-serif"; mso-fareast-language: EN-GB;"><o:p></o:p></span></i></div>
<br />
<div class="MsoNormal" style="background: white; margin: 0cm 0cm 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span lang="EN-US" style="color: black; font-family: "Arial","sans-serif"; mso-fareast-language: EN-GB;">Even non-Muslim investors see the
potential for profit in Islamic banking. Islamic financial products, as a rule,
carry lower risk investments while enabling them to earn a profit and at the
same time diversify their portfolio to further reduce risk.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="background: white; margin: 0cm 0cm 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<b><i><span lang="EN-US" style="color: black; font-family: "Arial","sans-serif"; mso-fareast-language: EN-GB;"><span style="color: #e06666;">Global Indexing</span></span></i></b><span lang="EN-US" style="color: black; font-family: "Arial","sans-serif"; mso-fareast-language: EN-GB;"><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="background: white; margin: 0cm 0cm 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span lang="EN-US" style="color: black; font-family: "Arial","sans-serif"; mso-fareast-language: EN-GB;">Western investors can track the Islamic
financing industry through international rating systems. When purchasing sukuk
or Islamic bonds, they can easily assess the strengths, weaknesses, and risk of
the bonds by simply referring to benchmarks that track the financial industry.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="background: white; margin: 0cm 0cm 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<b><i><span lang="EN-US" style="color: black; font-family: "Arial","sans-serif"; mso-fareast-language: EN-GB;"><span style="color: #e06666;">Oil-rich Countries
Adopt Islamic Finance</span></span></i></b><i><span lang="EN-US" style="color: black; font-family: "Arial","sans-serif"; mso-fareast-language: EN-GB;"><o:p></o:p></span></i></div>
<br />
<div class="MsoNormal" style="background: white; margin: 0cm 0cm 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span lang="EN-US" style="color: black; font-family: "Arial","sans-serif"; mso-fareast-language: EN-GB;">Countries belonging to the GCC want Shari’ah-compliant
products for investment. Those belonging to this group are some of the
wealthiest countries in the world. As the economies of Europe and the US
struggle to stabilize, GCC nations are well-funded and their needs well met by
Islamic banks.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="background: white; margin: 0cm 0cm 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<b><i><span lang="EN-US" style="color: black; font-family: "Arial","sans-serif"; mso-fareast-language: EN-GB;"><span style="color: #e06666;">Effective Decision-Making</span></span></i></b><i><span lang="EN-US" style="color: black; font-family: "Arial","sans-serif"; mso-fareast-language: EN-GB;"><o:p></o:p></span></i></div>
<br />
<div class="MsoNormal" style="background: white; margin: 0cm 0cm 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span lang="EN-US" style="color: black; font-family: "Arial","sans-serif"; mso-fareast-language: EN-GB;">Islamic investors avoid choices that
cause harm to people and the environment. Through a thoughtful decision-making
process, investors are able to make socially responsible choices that encourage
investments that are good for the long-term.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="background: white; margin: 0cm 0cm 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<b><i><span lang="EN-US" style="color: black; font-family: "Arial","sans-serif"; mso-fareast-language: EN-GB;"><span style="color: #e06666;">Streamlined and
Simpler</span></span></i></b><i><span lang="EN-US" style="color: black; font-family: "Arial","sans-serif"; mso-fareast-language: EN-GB;"><o:p></o:p></span></i></div>
<br />
<div class="MsoNormal" style="background: white; margin: 0cm 0cm 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span lang="EN-US" style="color: black; font-family: "Arial","sans-serif"; mso-fareast-language: EN-GB;">Islamic financial products, though they
might also come with their own set of complex rules, are far simpler to
understand than their conventional counterparts. For one, they are stricter
with contracts and as focused. Islamic financial institutions also have
scholars that offer consumers guidance with every venture and proceeding. They
follow strict principles that ensure every single transaction is carried out
according to Syariah law.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="background: white; margin: 0cm 0cm 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<b><i><span lang="EN-US" style="color: black; font-family: "Arial","sans-serif"; mso-fareast-language: EN-GB;"><span style="color: #e06666;">‘No Crisis’ Zone</span></span></i></b><i><span lang="EN-US" style="color: black; font-family: "Arial","sans-serif"; mso-fareast-language: EN-GB;"><o:p></o:p></span></i></div>
<br />
<div class="MsoNormal" style="background: white; margin: 0cm 0cm 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span lang="EN-US" style="color: black; font-family: "Arial","sans-serif"; mso-fareast-language: EN-GB;">Islamic financing saw a 25 per cent
increase in value of assets from 2007 to 2008, while most of the world’s
economies battled the worst financial crisis. It is, thus, safe to say that
investing in Islamic financing is a possible way to avert potential crises in
the world economy.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="background: white; margin: 0cm 0cm 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<b><i><span lang="EN-US" style="color: black; font-family: "Arial","sans-serif"; mso-fareast-language: EN-GB;"><span style="color: #e06666;">Humanitarian
Concern</span></span></i></b><i><span lang="EN-US" style="color: black; font-family: "Arial","sans-serif"; mso-fareast-language: EN-GB;"><o:p></o:p></span></i></div>
<br />
<div class="MsoNormal" style="background: white; margin: 0cm 0cm 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span lang="EN-US" style="color: black; font-family: "Arial","sans-serif"; mso-fareast-language: EN-GB;">It is not against Islamic laws to
accumulate wealth but all investors need to exercise awareness and shared
responsibility for poverty in the world. Through the concept of zakat, or
giving a portion of wealth to charity, Islamic finance aims to reduce economic
disparity across the globe.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="background: white; margin: 0cm 0cm 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<b><i><span lang="EN-US" style="color: black; font-family: "Arial","sans-serif"; mso-fareast-language: EN-GB;"><span style="color: #e06666;">Industrial
Catching Up</span></span></i></b><span lang="EN-US" style="color: black; font-family: "Arial","sans-serif"; mso-fareast-language: EN-GB;"><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="background: white; margin: 0cm 0cm 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span lang="EN-US" style="color: black; font-family: "Arial","sans-serif"; mso-fareast-language: EN-GB;">Malaysia’s Islamic assets reached US$65
billion in the financial year 2012/ 2013, reports the Ministry of Finance.
National Islamic banking assets registered an average growth rate of 18 per
cent to 20 per cent annually to reach US$ 65.6 billion. The government just
invested in the development of human resources for the Islamic financing
industry so as to ensure it catches up to the industry’s phenomenal growth.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Arial","sans-serif"; font-size: 14pt; mso-bidi-font-family: "Times New Roman";"><span style="color: #38761d;">Literature Initiative to Support the
Growth of the Industry<o:p></o:p></span></span></b></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Arial","sans-serif"; mso-bidi-font-family: "Times New Roman";"><o:p> </o:p></span></b><b><i><span lang="EN-US" style="font-family: "Arial","sans-serif"; mso-bidi-font-family: "Times New Roman";"><span style="color: #e06666;">Trade
& Finance:<o:p></o:p></span></span></i></b></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="font-family: "Arial","sans-serif"; mso-bidi-font-family: "Times New Roman";">Despite
this development, quality refereed materials on Islamic law of trade and
finance do not suffice the need yet. Thus, literally “<i style="mso-bidi-font-style: normal;">Applied Islamic Law of Trade and Finance”</i> (Sweet & Maxwell) provides
possible practical exposition of the current Islamic law of trade and finance.
Comparison with civil law highlights the differences between the systems and
greatly assists in the understanding of both systems. Regular quotation of
Qur’anic verses and prophetic traditions, with English translation, sets out
the religious foundation underlying the applicable Islamic law of trade and
finance in practical reality.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="font-family: "Arial","sans-serif"; mso-bidi-font-family: "Times New Roman";"><o:p> </o:p></span><span lang="EN-US" style="font-family: "Arial","sans-serif"; mso-bidi-font-family: "Times New Roman";">The
above title covers topics such as commercial contracts, sale of goods,
partnership, capital market, Islamic currency, Takaful and the institution of
Zakat. Islamic finance practitioners, bankers, lawyers, business owners and
their financial and legal advisers may gain valuable information on the Islamic
law of trade and finance with practical solutions.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="font-family: "Arial","sans-serif"; mso-bidi-font-family: "Times New Roman";"><o:p> </o:p></span><span lang="EN-US" style="font-family: "Arial","sans-serif"; mso-bidi-font-family: "Times New Roman";">Islamic
finance has grown exponentially in the last few decades and has reached over 70
countries around the world. The Islamic financial system today comprises a
sizeable asset base and there is evidence of sustained demand for Islamic
financial products and services in the global market, with demand outstripping
supply.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="font-family: "Arial","sans-serif"; mso-bidi-font-family: "Times New Roman";">The
forthcoming title <i style="mso-bidi-font-style: normal;">Applied Islamic
Finance: Law and Practice from a Global Perspective</i> provides a new source
of reference to aid the understanding of the laws and practices of Islamic
finance from a global perspective. Besides providing an overview of the regulatory
structure overseeing the Islamic financial system, the book discusses the
sources of law and the applied principles of <i style="mso-bidi-font-style: normal;">Shari’ah</i> governing Islamic financial instruments, products and
policies. An entire chapter is also devoted to surveying the laws of several
countries in the Muslim world that govern Islamic financial institutions.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="font-family: "Arial","sans-serif"; mso-bidi-font-family: "Times New Roman";">As
Islamic finance involves a wide array of global players including borrowers,
lenders and their bankers, policy makers as well as legal and financial
advisers, harmonization and rationalization are important to foster an
efficient and dynamic system. To that end, the book discusses the <i style="mso-bidi-font-style: normal;">Shari’ah</i> standard of contemporary
financial business, the roles and functions of a <i style="mso-bidi-font-style: normal;">Shari’ah</i> advisory body and the impact of fatwa in Islamic financial
practices.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="font-family: "Arial","sans-serif"; mso-bidi-font-family: "Times New Roman";">This
book may be regularly consulted by banking and finance practitioners, in-house
legal counsel, business owners, policy makers, participants, players,
researchers and persons responsible for the further development of the Islamic
financial system globally.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span style="color: #e06666;"><span lang="EN-US" style="font-family: "Arial","sans-serif"; mso-bidi-font-family: "Times New Roman";"><o:p> </o:p></span><b><i><span lang="EN-US" style="font-family: "Arial","sans-serif"; mso-bidi-font-family: "Times New Roman";">Takaful
& Re-takaful:<o:p></o:p></span></i></b></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<b><i><span lang="EN-US" style="font-family: "Arial","sans-serif"; mso-bidi-font-family: "Times New Roman";"><o:p> </o:p></span></i></b><span lang="EN-US" style="font-family: "Arial","sans-serif"; mso-bidi-font-family: "Times New Roman";">The
understanding of takaful (Islamic insurance) and modern insurance will be
greatly enhanced by reading “<i style="mso-bidi-font-style: normal;">Applied
Takaful and Modern Insurance”</i> with regulatory and practical consideration
(Sweet & Maxwell). This book makes available in clear and succinct language
the principles and practices of takaful and modern insurance with comparative
treatment. The comparison of these two systems brings up the differences
between and coincidence of both systems to facilitate better appreciation of
the systems, which run in parallel to cover the various risks faced in life and
reality today.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="font-family: "Arial","sans-serif"; mso-bidi-font-family: "Times New Roman";"><o:p> </o:p></span><span lang="EN-US" style="font-family: "Arial","sans-serif"; mso-bidi-font-family: "Times New Roman";">The
topics covered in this book include subject matter at risk, insurable interest,
good faith, insurance contracts, risk management, insurance intermediaries,
nomination, beneficiaries, claims, distribution and legal formalities. The
contemporary experience in takaful operation is also discussed and
recommendations are given for the future development of the industry in the contemporary
world of advance economy.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="font-family: "Arial","sans-serif"; mso-bidi-font-family: "Times New Roman";">The
book has been useful for takaful, re-takaful and insurance practitioners,
business owners, in-house <i style="mso-bidi-font-style: normal;">Shari’ah</i>
and legal counsel, takaful or insurance advisors and persons responsible for
risk management.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<b style="mso-bidi-font-weight: normal;"><i><span lang="EN-US" style="font-family: "Arial","sans-serif"; mso-bidi-font-family: "Times New Roman";"><span style="color: #e06666;">e-Commerce:<o:p></o:p></span></span></i></b></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="font-family: "Arial","sans-serif"; mso-bidi-font-family: "Times New Roman";">The
increasing volume of <i style="mso-bidi-font-style: normal;">Shari’ah</i>-compliant
business transactions backed by Islamic financial arrangements and the
widespread use of the Internet and information technology (IT) make a good
understanding of Islamic e-commerce law and practices very important. Being a
developing area, good literature is not in abundance and it is the aim of a
latest book, “<i style="mso-bidi-font-style: normal;">Applied Islamic e-Commerce”
</i><span style="mso-bidi-font-style: italic;">(Sweet & Maxwell),</span> may
meet the need.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="font-family: "Arial","sans-serif"; mso-bidi-font-family: "Times New Roman";">This
book gives a practical and enlightening account of Islamic law comparing modern
principles as they apply to the field of e-commerce with comparative treatment.
Part I of the book sets out the general principles of e-commerce law, which
include ethics in e-commerce and the sources of e-commerce law. Part II
discusses the <i style="mso-bidi-font-style: normal;">Shari’ah</i> perspective
comparing modern practical matters such as Internet marketing and advertising,
virtual stores and payment systems as well as personal rights and the
protection of privacy.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="font-family: "Arial","sans-serif"; mso-bidi-font-family: "Times New Roman";">The
practices of e-commerce law under <i style="mso-bidi-font-style: normal;">Shari’ah
</i>compared with modern principles are explored in Part III. These include the
components of an e-contract, the principles governing data protection and the
concept and practical application of digital signatures. Part IV surveys
offences and liabilities in e-commerce, particularly the problem with hackers
and torts in e-commerce dealings under <i style="mso-bidi-font-style: normal;">Shari’ah</i>
compared with modern principles.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<i style="mso-bidi-font-style: normal;"><span lang="EN-US" style="font-family: "Arial","sans-serif"; mso-bidi-font-family: "Times New Roman";">Applied Islamic e-Commerce: Laws and Practice</span></i><span lang="EN-US" style="font-family: "Arial","sans-serif"; mso-bidi-font-family: "Times New Roman";">
is an illuminating text and provides valuable guidance from the Islamic law
standpoint compared with modern principles on practical issues which arise in
the conduct of e-commerce. This is certainly a first book produced by
considering Shari’ah standard comparing with modern principles and should not
be missed by corporate lawyers, finance and business advisors, business owners,
in-house legal counsel, marketers, IT professionals and those involve in
e-commerce activities in business across the world.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="font-family: "Arial","sans-serif"; mso-bidi-font-family: "Times New Roman";"><o:p> </o:p></span><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Arial","sans-serif"; font-size: 14pt; mso-bidi-font-family: "Times New Roman";"><span style="color: #38761d;">Strategies Ahead<o:p></o:p></span></span></b></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="font-family: "Arial","sans-serif"; mso-bidi-font-family: "Times New Roman";">Indeed,
in the past Islamic financial industry had grown with hardship strategies,
while the present movement is being achieved through dynamic strategic and
smart applications with the potential to be an alternative component to the
global conventional players. If such a phenomenon continues, the Islamic
banking and financial platform may undoubtedly secure a sustainable place in
the world’s growing financial picture. <o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="font-family: "Arial","sans-serif"; mso-bidi-font-family: "Times New Roman";">For
this to occur, due professionalism, public awareness, review exercises and
product innovations must strictly be observed. Furthermore, dynamic mechanisms
should be continuously researched to provide tools for risk management at all
levels of Islamic financial industry. In addition, there must be adequate
applications of relevant information technology (IT) to facilitate the smooth
running of hi-tech Islamic financial activities. This will help meet the
objective of providing the best and most competitive offerings for the present
and the future.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="font-family: "Arial","sans-serif"; mso-bidi-font-family: "Times New Roman";"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="font-family: "Arial","sans-serif"; mso-bidi-font-family: "Times New Roman";"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="font-family: "Arial","sans-serif"; mso-bidi-font-family: "Times New Roman";"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="font-family: "Arial","sans-serif"; mso-bidi-font-family: "Times New Roman";"><o:p> </o:p></span></div>
Mohd. Ma'sum Billahhttp://www.blogger.com/profile/14029507777590329011noreply@blogger.com0tag:blogger.com,1999:blog-7101557101807536516.post-45392390504457667172014-02-25T00:32:00.001-08:002014-02-25T00:58:39.621-08:00 Tip for Student to Prove Self-Dynamism<br />
<div class="MsoNormal" style="margin: 0in 0in 10pt; text-align: justify;">
<span lang="EN-GB" style="color: black; font-family: "Verdana","sans-serif"; font-size: 12pt; line-height: 115%; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1;">For the purpose of
preparing our students at all levels to be a right professional with high moral
value, it has been strategically discovered that, all Muslim students shall be
encouraged with an additional task of “<b><i style="mso-bidi-font-style: normal;">Tahfeez
al-Qur’an</i></b>”. So that, a student from Primary school till one’s
graduation at the University level may proudly install a </span><b><span lang="EN-GB" style="color: #f79646; font-family: "Verdana","sans-serif"; font-size: 12pt; line-height: 115%; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-themecolor: accent6;">CHIP</span></b><span lang="EN-GB" style="color: black; font-family: "Verdana","sans-serif"; font-size: 12pt; line-height: 115%; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1;"> of 30 J’uz
(Chapters) of the holy Qur’an in own heart & mind </span><span lang="EN-GB" style="color: black; font-family: "Verdana","sans-serif"; font-size: 12pt; line-height: 115%; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1;"><strong><span style="background-color: blue; color: #f4cccc;">irrespective of one’s discipline of education
and majoring</span></strong> (science, technology, economy & or others)<span style="mso-bidi-font-weight: bold;">. Thus, the strategy to the above effect is
as follows:</span></span><br />
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</span><table border="1" cellpadding="0" cellspacing="0" class="MsoTableGrid" style="border-collapse: collapse; border: currentColor; mso-border-alt: solid black .5pt; mso-border-themecolor: text1; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-table-layout-alt: fixed; mso-yfti-tbllook: 1184;"><tbody>
<tr style="mso-yfti-firstrow: yes; mso-yfti-irow: 0;"><td style="background: rgb(155, 187, 89); border: 1pt solid black; mso-background-themecolor: accent3; mso-border-alt: solid black .5pt; mso-border-themecolor: text1; padding: 0in 5.4pt; width: 36.9pt;" valign="top" width="74"><span style="font-family: Times New Roman;">
</span><br />
<div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;">
<b><span lang="EN-GB" style="color: #0070c0; font-family: "Verdana","sans-serif"; font-size: 3pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";"><o:p> </o:p></span></b></div>
<span style="font-family: Times New Roman;">
</span><br />
<div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;">
<b><span lang="EN-GB" style="color: #0070c0; font-size: 10pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";"><span style="font-family: Calibri;">Level<o:p></o:p></span></span></b></div>
<span style="font-family: Times New Roman;">
</span></td><td style="background: rgb(155, 187, 89); border-color: black black black rgb(0, 0, 0); border-style: solid solid solid none; border-width: 1pt 1pt 1pt 0px; mso-background-themecolor: accent3; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-themecolor: text1; padding: 0in 5.4pt; width: 81pt;" valign="top" width="162"><span style="font-family: Times New Roman;">
</span><br />
<div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;">
<b><span lang="EN-GB" style="color: #0070c0; font-family: "Verdana","sans-serif"; font-size: 3pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";"><o:p> </o:p></span></b></div>
<span style="font-family: Times New Roman;">
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<div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;">
<b><span lang="EN-GB" style="color: #0070c0; font-size: 10pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";"><span style="font-family: Calibri;">Program<o:p></o:p></span></span></b></div>
<span style="font-family: Times New Roman;">
</span></td><td style="background: rgb(155, 187, 89); border-color: black black black rgb(0, 0, 0); border-style: solid solid solid none; border-width: 1pt 1pt 1pt 0px; mso-background-themecolor: accent3; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-themecolor: text1; padding: 0in 5.4pt; width: 58.5pt;" valign="top" width="117"><span style="font-family: Times New Roman;">
</span><br />
<div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;">
<b><span lang="EN-GB" style="color: #0070c0; font-family: "Verdana","sans-serif"; font-size: 3pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";"><o:p> </o:p></span></b></div>
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<div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;">
<b><span lang="EN-GB" style="color: #0070c0; font-size: 10pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";"><span style="font-family: Calibri;">Total Semesters<o:p></o:p></span></span></b></div>
<span style="font-family: Times New Roman;">
</span></td><td style="background: rgb(155, 187, 89); border-color: black black black rgb(0, 0, 0); border-style: solid solid solid none; border-width: 1pt 1pt 1pt 0px; mso-background-themecolor: accent3; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-themecolor: text1; padding: 0in 5.4pt; width: 81pt;" valign="top" width="162"><span style="font-family: Times New Roman;">
</span><br />
<div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;">
<b><span lang="EN-GB" style="color: #0070c0; font-size: 10pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";"><span style="font-family: Calibri;">Allocation<span style="mso-spacerun: yes;">
</span>(Per Semester)<o:p></o:p></span></span></b></div>
<span style="font-family: Times New Roman;">
</span></td><td style="background: rgb(155, 187, 89); border-color: black black black rgb(0, 0, 0); border-style: solid solid solid none; border-width: 1pt 1pt 1pt 0px; mso-background-themecolor: accent3; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-themecolor: text1; padding: 0in 5.4pt; width: 94.5pt;" valign="top" width="189"><span style="font-family: Times New Roman;">
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<b><span lang="EN-GB" style="color: #0070c0; font-family: "Verdana","sans-serif"; font-size: 3pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";"><o:p> </o:p></span></b></div>
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<b><span lang="EN-GB" style="color: #0070c0; font-size: 10pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";"><span style="font-family: Calibri;">Total Achievement<o:p></o:p></span></span></b></div>
<span style="font-family: Times New Roman;">
</span></td></tr>
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</span><br />
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<span lang="EN-GB" style="color: #002060; font-size: 3pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman";"><o:p><span style="font-family: Calibri;"> </span></o:p></span></div>
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</span><br />
<div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;">
<span lang="EN-GB" style="color: #002060; font-size: 10pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman";"><span style="font-family: Calibri;">1<o:p></o:p></span></span></div>
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</span><br />
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<span lang="EN-GB" style="color: #002060; font-size: 10pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman";"><span style="font-family: Calibri;">Primary<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span>1<o:p></o:p></span></span></div>
<span style="font-family: Times New Roman;">
</span></td><td style="background-color: transparent; border-color: rgb(0, 0, 0) black black rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt; width: 58.5pt;" valign="top" width="117"><span style="font-family: Times New Roman;">
</span><br />
<div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;">
<span lang="EN-GB" style="color: #002060; font-family: "Verdana","sans-serif"; font-size: 3pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman";"><o:p> </o:p></span></div>
<span style="font-family: Times New Roman;">
</span><br />
<div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;">
<span lang="EN-GB" style="color: #002060; font-family: "Verdana","sans-serif"; font-size: 10pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman";">2<o:p></o:p></span></div>
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</span><br />
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<span lang="EN-GB" style="color: #002060; font-family: "Verdana","sans-serif"; font-size: 3pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman";"><o:p> </o:p></span></div>
<span style="font-family: Times New Roman;">
</span><br />
<div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;">
<span lang="EN-GB" style="color: #002060; font-family: "Verdana","sans-serif"; font-size: 10pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman";">Iqra’<o:p></o:p></span></div>
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</span><br />
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<span lang="EN-GB" style="color: #002060; font-family: "Verdana","sans-serif"; font-size: 3pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman";"><o:p> </o:p></span></div>
<span style="font-family: Times New Roman;">
</span><br />
<div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;">
<span lang="EN-GB" style="color: #002060; font-family: "Verdana","sans-serif"; font-size: 10pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman";">Complete Iqra’<o:p></o:p></span></div>
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</span></td></tr>
<tr style="mso-yfti-irow: 2;"><td style="background-color: transparent; border-color: rgb(0, 0, 0) black black; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid black .5pt; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt; width: 36.9pt;" valign="top" width="74"><span style="font-family: Times New Roman;">
</span><br />
<div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;">
<span lang="EN-GB" style="color: #002060; font-size: 3pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman";"><o:p><span style="font-family: Calibri;"> </span></o:p></span></div>
<span style="font-family: Times New Roman;">
</span><br />
<div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;">
<span lang="EN-GB" style="color: #002060; font-size: 10pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman";"><span style="font-family: Calibri;">2<o:p></o:p></span></span></div>
<span style="font-family: Times New Roman;">
</span></td><td style="background-color: transparent; border-color: rgb(0, 0, 0) black black rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt; width: 81pt;" valign="top" width="162"><span style="font-family: Times New Roman;">
</span><br />
<div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;">
<span lang="EN-GB" style="color: #002060; font-size: 10pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman";"><span style="font-family: Calibri;">Primary<span style="mso-spacerun: yes;"> </span>2-6<o:p></o:p></span></span></div>
<span style="font-family: Times New Roman;">
</span></td><td style="background-color: transparent; border-color: rgb(0, 0, 0) black black rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt; width: 58.5pt;" valign="top" width="117"><span style="font-family: Times New Roman;">
</span><br />
<div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;">
<span lang="EN-GB" style="color: #002060; font-family: "Verdana","sans-serif"; font-size: 3pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman";"><o:p> </o:p></span></div>
<span style="font-family: Times New Roman;">
</span><br />
<div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;">
<span lang="EN-GB" style="color: #002060; font-family: "Verdana","sans-serif"; font-size: 10pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman";">10<o:p></o:p></span></div>
<span style="font-family: Times New Roman;">
</span></td><td style="background-color: transparent; border-color: rgb(0, 0, 0) black black rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt; width: 81pt;" valign="top" width="162"><span style="font-family: Times New Roman;">
</span><br />
<div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;">
<span lang="EN-GB" style="color: #002060; font-family: "Verdana","sans-serif"; font-size: 3pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman";"><o:p> </o:p></span></div>
<span style="font-family: Times New Roman;">
</span><br />
<div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;">
<span lang="EN-GB" style="color: #002060; font-family: "Verdana","sans-serif"; font-size: 10pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman";">1 J’uz (Chapter)<o:p></o:p></span></div>
<span style="font-family: Times New Roman;">
</span></td><td style="background-color: transparent; border-color: rgb(0, 0, 0) black black rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt; width: 94.5pt;" valign="top" width="189"><span style="font-family: Times New Roman;">
</span><br />
<div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;">
<span lang="EN-GB" style="color: #002060; font-family: "Verdana","sans-serif"; font-size: 3pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman";"><o:p> </o:p></span></div>
<span style="font-family: Times New Roman;">
</span><br />
<div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;">
<span lang="EN-GB" style="color: #002060; font-family: "Verdana","sans-serif"; font-size: 10pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman";">10 J’uz (Chapters)<o:p></o:p></span></div>
<span style="font-family: Times New Roman;">
</span></td></tr>
<tr style="mso-yfti-irow: 3;"><td style="background-color: transparent; border-color: rgb(0, 0, 0) black black; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid black .5pt; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt; width: 36.9pt;" valign="top" width="74"><span style="font-family: Times New Roman;">
</span><br />
<div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;">
<span lang="EN-GB" style="color: #002060; font-size: 3pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman";"><o:p><span style="font-family: Calibri;"> </span></o:p></span></div>
<span style="font-family: Times New Roman;">
</span><br />
<div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;">
<span lang="EN-GB" style="color: #002060; font-size: 10pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman";"><span style="font-family: Calibri;"><span style="mso-spacerun: yes;"> </span>3<o:p></o:p></span></span></div>
<span style="font-family: Times New Roman;">
</span></td><td style="background-color: transparent; border-color: rgb(0, 0, 0) black black rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt; width: 81pt;" valign="top" width="162"><span style="font-family: Times New Roman;">
</span><br />
<div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;">
<span lang="EN-GB" style="color: #002060; font-size: 10pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman";"><span style="font-family: Calibri;">Secondary<span style="mso-spacerun: yes;"> </span>1-5<o:p></o:p></span></span></div>
<span style="font-family: Times New Roman;">
</span></td><td style="background-color: transparent; border-color: rgb(0, 0, 0) black black rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt; width: 58.5pt;" valign="top" width="117"><span style="font-family: Times New Roman;">
</span><br />
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<span lang="EN-GB" style="color: #002060; font-family: "Verdana","sans-serif"; font-size: 3pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman";"><o:p> </o:p></span></div>
<span style="font-family: Times New Roman;">
</span><br />
<div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;">
<span lang="EN-GB" style="color: #002060; font-family: "Verdana","sans-serif"; font-size: 10pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman";">10<o:p></o:p></span></div>
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</span><br />
<div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;">
<span lang="EN-GB" style="color: #002060; font-family: "Verdana","sans-serif"; font-size: 3pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman";"><o:p> </o:p></span></div>
<span style="font-family: Times New Roman;">
</span><br />
<div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;">
<span lang="EN-GB" style="color: #002060; font-family: "Verdana","sans-serif"; font-size: 10pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman";">1 J’uz (Chapter)<o:p></o:p></span></div>
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</span></td><td style="background-color: transparent; border-color: rgb(0, 0, 0) black black rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt; width: 94.5pt;" valign="top" width="189"><span style="font-family: Times New Roman;">
</span><br />
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<span lang="EN-GB" style="color: #002060; font-family: "Verdana","sans-serif"; font-size: 3pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman";"><o:p> </o:p></span></div>
<span style="font-family: Times New Roman;">
</span><br />
<div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;">
<span lang="EN-GB" style="color: #002060; font-family: "Verdana","sans-serif"; font-size: 10pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman";">10 J’uz (Chapters)<o:p></o:p></span></div>
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<tr style="mso-yfti-irow: 4;"><td style="background-color: transparent; border-color: rgb(0, 0, 0) black black; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid black .5pt; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt; width: 36.9pt;" valign="top" width="74"><span style="font-family: Times New Roman;">
</span><br />
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<span lang="EN-GB" style="color: #002060; font-size: 3pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman";"><o:p><span style="font-family: Calibri;"> </span></o:p></span></div>
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</span><br />
<div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;">
<span lang="EN-GB" style="color: #002060; font-size: 10pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman";"><span style="font-family: Calibri;">4<o:p></o:p></span></span></div>
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</span></td><td style="background-color: transparent; border-color: rgb(0, 0, 0) black black rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt; width: 81pt;" valign="top" width="162"><span style="font-family: Times New Roman;">
</span><br />
<div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;">
<span lang="EN-GB" style="color: #002060; font-size: 10pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman";"><span style="font-family: Calibri;">Foundation<span style="mso-spacerun: yes;"> </span>(“A” Level)<o:p></o:p></span></span></div>
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</span></td><td style="background-color: transparent; border-color: rgb(0, 0, 0) black black rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt; width: 58.5pt;" valign="top" width="117"><span style="font-family: Times New Roman;">
</span><br />
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<span lang="EN-GB" style="color: #002060; font-family: "Verdana","sans-serif"; font-size: 3pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman";"><o:p> </o:p></span></div>
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</span><br />
<div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;">
<span lang="EN-GB" style="color: #002060; font-family: "Verdana","sans-serif"; font-size: 10pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman";">2<o:p></o:p></span></div>
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</span><br />
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<span lang="EN-GB" style="color: #002060; font-family: "Verdana","sans-serif"; font-size: 3pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman";"><o:p> </o:p></span></div>
<span style="font-family: Times New Roman;">
</span><br />
<div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;">
<span lang="EN-GB" style="color: #002060; font-family: "Verdana","sans-serif"; font-size: 10pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman";">1 J’uz (Chapter)<o:p></o:p></span></div>
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</span></td><td style="background-color: transparent; border-color: rgb(0, 0, 0) black black rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt; width: 94.5pt;" valign="top" width="189"><span style="font-family: Times New Roman;">
</span><br />
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<span lang="EN-GB" style="color: #002060; font-family: "Verdana","sans-serif"; font-size: 3pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman";"><o:p> </o:p></span></div>
<span style="font-family: Times New Roman;">
</span><br />
<div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;">
<span lang="EN-GB" style="color: #002060; font-family: "Verdana","sans-serif"; font-size: 10pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman";">2 J’uz <span style="mso-spacerun: yes;"> </span>(Chapters)<o:p></o:p></span></div>
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<tr style="mso-yfti-irow: 5;"><td style="background-color: transparent; border-color: rgb(0, 0, 0) black black; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid black .5pt; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt; width: 36.9pt;" valign="top" width="74"><span style="font-family: Times New Roman;">
</span><br />
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<span lang="EN-GB" style="color: #002060; font-size: 3pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman";"><o:p><span style="font-family: Calibri;"> </span></o:p></span></div>
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</span><br />
<div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;">
<span lang="EN-GB" style="color: #002060; font-size: 10pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman";"><span style="font-family: Calibri;">5<o:p></o:p></span></span></div>
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</span></td><td style="background-color: transparent; border-color: rgb(0, 0, 0) black black rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt; width: 81pt;" valign="top" width="162"><span style="font-family: Times New Roman;">
</span><br />
<div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;">
<span lang="EN-GB" style="color: #002060; font-size: 10pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman";"><span style="font-family: Calibri;">University (Undergraduate)<o:p></o:p></span></span></div>
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</span></td><td style="background-color: transparent; border-color: rgb(0, 0, 0) black black rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt; width: 58.5pt;" valign="top" width="117"><span style="font-family: Times New Roman;">
</span><br />
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<span lang="EN-GB" style="color: #002060; font-family: "Verdana","sans-serif"; font-size: 3pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman";"><o:p> </o:p></span></div>
<span style="font-family: Times New Roman;">
</span><br />
<div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;">
<span lang="EN-GB" style="color: #002060; font-family: "Verdana","sans-serif"; font-size: 10pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman";">8<o:p></o:p></span></div>
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</span></td><td style="background-color: transparent; border-color: rgb(0, 0, 0) black black rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt; width: 81pt;" valign="top" width="162"><span style="font-family: Times New Roman;">
</span><br />
<div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;">
<span lang="EN-GB" style="color: #002060; font-family: "Verdana","sans-serif"; font-size: 3pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman";"><o:p> </o:p></span></div>
<span style="font-family: Times New Roman;">
</span><br />
<div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;">
<span lang="EN-GB" style="color: #002060; font-family: "Verdana","sans-serif"; font-size: 10pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman";">1 J’uz (Chapter)<o:p></o:p></span></div>
<span style="font-family: Times New Roman;">
</span></td><td style="background-color: transparent; border-color: rgb(0, 0, 0) black black rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt; width: 94.5pt;" valign="top" width="189"><span style="font-family: Times New Roman;">
</span><br />
<div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;">
<span lang="EN-GB" style="color: #002060; font-family: "Verdana","sans-serif"; font-size: 3pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman";"><o:p> </o:p></span></div>
<span style="font-family: Times New Roman;">
</span><br />
<div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;">
<span lang="EN-GB" style="color: #002060; font-family: "Verdana","sans-serif"; font-size: 10pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman";">8 J’uz <span style="mso-spacerun: yes;"> </span>(Chapters)<o:p></o:p></span></div>
<span style="font-family: Times New Roman;">
</span></td></tr>
<tr style="mso-yfti-irow: 6; mso-yfti-lastrow: yes;"><td colspan="4" style="background: yellow; border-color: rgb(0, 0, 0) black black; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid black .5pt; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt; width: 257.4pt;" valign="top" width="515"><span style="font-family: Times New Roman;">
</span><br />
<div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;">
<span lang="EN-GB" style="color: #002060; font-size: 3pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman";"><o:p><span style="font-family: Calibri;"> </span></o:p></span></div>
<span style="font-family: Times New Roman;">
</span><br />
<div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;">
<span style="font-family: Calibri;"><b><span lang="EN-GB" style="color: #002060; font-size: 12pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";"> Total Achievement<span style="mso-spacerun: yes;">
</span></span></b><span lang="EN-GB" style="color: #002060; font-size: 10pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman";">(Primary 2 – Under graduation)</span><span lang="EN-GB" style="color: #002060; font-size: 12pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></span></div>
<span style="font-family: Times New Roman;">
</span></td><td style="background: yellow; border-color: rgb(0, 0, 0) black black rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt; width: 94.5pt;" valign="top" width="189"><span style="font-family: Times New Roman;">
</span><br />
<div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;">
<span style="font-family: Calibri;"><b><span lang="EN-GB" style="color: #002060; font-size: 12pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">30 J’uz <span style="mso-spacerun: yes;"> </span></span></b><b><span lang="EN-GB" style="color: #002060; font-size: 10pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">(Chapters)</span></b><b><span lang="EN-GB" style="color: #002060; font-size: 12pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></b></span></div>
<span style="font-family: Times New Roman;">
</span></td></tr>
</tbody></table>
<span style="font-family: Times New Roman;">
</span><br />
</span><div class="MsoNormal" style="margin: 0in 0in 10pt; text-align: justify;">
<span style="font-family: Verdana;"><span lang="EN-GB" style="font-family: "Verdana","sans-serif"; font-size: 12pt; line-height: 115%;"><o:p> </o:p></span></span></div>
<span style="font-family: Verdana;">
</span><span lang="EN-GB" style="font-family: "Verdana","sans-serif"; font-size: 12pt; line-height: 115%;">For
non-Muslim students, an alternative plan shall also be designed for the similar
purpose of building one up as right professional with standard moral value by honouring
one’s respective religion and faith in no matter of one’s discipline of
education.<o:p></o:p></span><br /></div>
Mohd. Ma'sum Billahhttp://www.blogger.com/profile/14029507777590329011noreply@blogger.com0tag:blogger.com,1999:blog-7101557101807536516.post-77034437653566225192013-08-10T22:55:00.002-07:002014-03-20T00:51:37.283-07:00Actuarial Mechanisms in Takaful Practices<span style="color: #741b47;"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";">Takaful
insurance provides Islamic insurance to the society, which practices based on
the Islamic principles. In <st1:country-region w:st="on"><st1:place w:st="on">Malaysia</st1:place></st1:country-region>,
there are two companies which conducting Takaful operations; Takaful
Malaysia Bhd and others.</span><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><o:p> </o:p></span></span><br />
<span style="color: #741b47;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-style: normal; font-weight: normal;"></span></span><br />
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-style: normal; font-weight: normal;"><span style="color: #741b47;">Actuary refers to an expert who calculates insurance risks
and payments by studying the mobility rates and mortality rates. However,
pricing is referring to the value of the policy and the amount of premium rates
that need to be contributed by the participant as a result of calculating the
insurance risks by the actuaries’ people. Therefore, there is department called
actuary and pricing department in Takaful Company, which, specialized on this
particular field. </span></span><br />
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-style: normal; font-weight: normal;"><span style="color: #741b47;"></span></span><br />
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-style: normal; font-weight: normal;"><span style="color: #741b47;">The aimed of this department is provides quality products
with good pricing rates. Therefore, the products and the pricing need to fill
some criteria before it can be considered as quality product.<o:p></o:p></span></span><br />
<span style="color: #741b47;">
</span><br />
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<span style="color: #741b47;"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-style: normal; font-weight: normal;"><o:p> </o:p></span><span lang="EN-US" style="color: blue; font-family: Wingdings; font-style: normal; font-weight: normal; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;"><span style="mso-list: Ignore;">§<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><!--[endif]--><span dir="LTR"></span><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-style: normal; font-weight: normal;">The product is able to serve
the ummah and provides benefits in line of Syariah principles.<o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoBodyText" style="margin: 0cm 0cm 0pt 72pt; mso-list: l2 level1 lfo5; tab-stops: list 72.0pt; text-indent: -18pt;">
<!--[if !supportLists]--><span style="color: #741b47;"><span lang="EN-US" style="color: blue; font-family: Wingdings; font-style: normal; font-weight: normal; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;"><span style="mso-list: Ignore;">§<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><!--[endif]--><span dir="LTR"></span><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-style: normal; font-weight: normal;">The product is able to provide
protection and coverage to the participant with a reasonable premium rates.<o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoBodyText" style="margin: 0cm 0cm 0pt 72pt; mso-list: l2 level1 lfo5; tab-stops: list 72.0pt; text-indent: -18pt;">
<!--[if !supportLists]--><span style="color: #741b47;"><span lang="EN-US" style="color: blue; font-family: Wingdings; font-style: normal; font-weight: normal; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;"><span style="mso-list: Ignore;">§<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><!--[endif]--><span dir="LTR"></span><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-style: normal; font-weight: normal;">There is mutual cooperation
exist between participant and operator in managing the fund.<o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoBodyText" style="margin: 0cm 0cm 0pt 72pt; mso-list: l2 level1 lfo5; tab-stops: list 72.0pt; text-indent: -18pt;">
<!--[if !supportLists]--><span style="color: #741b47;"><span lang="EN-US" style="color: blue; font-family: Wingdings; font-style: normal; font-weight: normal; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;"><span style="mso-list: Ignore;">§<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><!--[endif]--><span dir="LTR"></span><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-style: normal; font-weight: normal;">The profit that creates from
the Mudharabah fund is lawful.<o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<span style="color: #741b47;"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-style: normal; font-weight: normal;"><o:p>I</o:p></span><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-style: normal; font-weight: normal;">n others way, Takaful Company
must present the right pricing rates for each Takaful policies in line with
principles of Syariah. Allah s.w.t said in Quran<a href="file:///C:/Users/User/Desktop/MY%20DOCUMENTS/My%20DOCUMENTS%20(February%2001,%202013)/My%20IP/IP%20of%20Masum/Intellectual%20Properties%20(IP)/e-LEARNING%20Project/e-Learning%20(Materials)/Actuarial%20Science%20[30]/Pricings.doc#_ftn1" name="_ftnref1" style="mso-footnote-id: ftn1;" title=""><span class="MsoFootnoteReference"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[1]</span></span><!--[endif]--></span></span></a>;</span></span><br />
<div class="MsoBodyText" style="margin: 0cm 0cm 0pt;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-style: normal; font-weight: normal;"><o:p><span style="color: #741b47;"> </span></o:p></span></div>
<div class="MsoBodyText" style="margin: 0cm 0cm 0pt; text-align: center;">
<span style="color: #741b47;"><span dir="RTL" lang="AR-SA" style="color: blue; font-family: "Times New Roman","serif"; font-size: 14pt; font-style: normal; font-weight: normal; mso-ansi-font-style: italic; mso-ansi-font-weight: bold; mso-ascii-font-family: "Bookman Old Style"; mso-hansi-font-family: "Bookman Old Style";"><span class="apple-style-span"><span dir="LTR" style="color: #004080; font-family: "AGA Arabesque"; font-size: 14pt; line-height: 107%; mso-ascii-font-family: Tahoma; mso-bidi-font-family: "DecoType Naskh Variants"; mso-char-type: symbol; mso-hansi-font-family: Tahoma; mso-symbol-font-family: "AGA Arabesque";"><span style="mso-char-type: symbol; mso-symbol-font-family: "AGA Arabesque";">}</span></span></span><span class="apple-style-span"><span lang="AR-SA" style="color: #004080; font-family: "DecoType Naskh Variants"; font-size: 14pt; line-height: 107%; mso-ascii-font-family: Tahoma; mso-hansi-font-family: Tahoma;">وَأَحَلَّ اللَّهُ الْبَيْعَ
وَحَرَّمَ الرِّبَا </span></span><span class="apple-style-span"><span lang="AR-SA" style="color: #004080; font-family: "Times New Roman","serif"; font-size: 14pt; line-height: 107%;">ۚ</span></span><span dir="LTR"></span><span dir="LTR"></span><span class="apple-style-span"><span dir="LTR" style="color: #004080; font-family: "AGA Arabesque"; font-size: 14pt; line-height: 107%; mso-ascii-font-family: Tahoma; mso-bidi-font-family: "DecoType Naskh Variants"; mso-char-type: symbol; mso-hansi-font-family: Tahoma; mso-symbol-font-family: "AGA Arabesque";"><span dir="LTR"></span><span dir="LTR"></span><span style="mso-char-type: symbol; mso-symbol-font-family: "AGA Arabesque";">{</span></span></span></span></span></div>
<div class="MsoBodyText" style="margin: 0cm 0cm 0pt;">
<span style="color: #741b47;"><span dir="RTL" lang="AR-SA" style="color: blue; font-family: "Times New Roman","serif"; font-size: 14pt; font-style: normal; font-weight: normal; mso-ansi-font-style: italic; mso-ansi-font-weight: bold; mso-ascii-font-family: "Bookman Old Style"; mso-hansi-font-family: "Bookman Old Style";">
</span></span></div>
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<span style="color: #741b47;"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-style: normal; font-weight: normal;">The sentence means that Allah
has encouraged and permitted in trade and commerce and prohibited ‘riba’ in
practices. This verse is related with the concept of the pricing in Takaful,
which is the responsibility of the actuary and pricing department in preparing
the costing for the Takaful product that not contain any elements of ‘riba’ or
‘gharar’. <o:p></o:p></span></span></div>
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<br /></div>
<span style="color: #741b47;">
</span><br />
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<span style="color: #741b47;"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-style: normal; font-weight: normal;"><o:p> </o:p></span><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-style: normal; font-weight: normal;">For example, in terms and conditions that stated in the
brochures or in the application forms must clear and understandable. This is
includes:<o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoBodyText" style="margin: 0cm 0cm 0pt 72pt; mso-list: l10 level1 lfo10; tab-stops: list 72.0pt; text-indent: -18pt;">
<!--[if !supportLists]--><span style="color: #741b47;"><span lang="EN-US" style="color: blue; font-family: Symbol; font-style: normal; font-weight: normal; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><!--[endif]--><span dir="LTR"></span><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-style: normal; font-weight: normal;">Allocation of the fund<o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoBodyText" style="margin: 0cm 0cm 0pt 72pt; mso-list: l7 level1 lfo11; tab-stops: list 72.0pt; text-indent: -18pt;">
<!--[if !supportLists]--><span style="color: #741b47;"><span lang="EN-US" style="color: blue; font-family: Symbol; font-style: normal; font-weight: normal; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><!--[endif]--><span dir="LTR"></span><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-style: normal; font-weight: normal;">Types of payment<o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoBodyText" style="margin: 0cm 0cm 0pt 72pt; mso-list: l13 level1 lfo12; tab-stops: list 72.0pt; text-indent: -18pt;">
<!--[if !supportLists]--><span style="color: #741b47;"><span lang="EN-US" style="color: blue; font-family: Symbol; font-style: normal; font-weight: normal; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><!--[endif]--><span dir="LTR"></span><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-style: normal; font-weight: normal;">Types of coverage and benefits received by participant<o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoBodyText" style="margin: 0cm 0cm 0pt 72pt; mso-list: l12 level1 lfo13; tab-stops: list 72.0pt; text-indent: -18pt;">
<!--[if !supportLists]--><span style="color: #741b47;"><span lang="EN-US" style="color: blue; font-family: Symbol; font-style: normal; font-weight: normal; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><!--[endif]--><span dir="LTR"></span><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-style: normal; font-weight: normal;">How to apply the Takaful policy. <o:p></o:p></span></span></div>
<span style="color: #741b47;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-style: normal; font-weight: normal;"></span></span><br />
<span style="color: #741b47;"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-style: normal; font-weight: normal;">The allocation of the fund may explain the participant how
the money is</span><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-weight: normal;"><em> </em></span><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-style: normal; font-weight: normal;">manages
by the operator and in the same time justify whether it’s</span><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-style: normal;"><strong> </strong></span><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-style: normal; font-weight: normal;">contains element of ‘riba’ or
not. Similarly, in term of the contribution that made by</span><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><strong><em> </em></strong></span><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-style: normal; font-weight: normal;">the participant must not involves any
surplus or extra charges such as commission. <o:p></o:p></span></span><br />
<span style="color: #741b47;">
</span><br />
<div class="MsoBodyText" style="margin: 0cm 0cm 0pt;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-style: normal; font-weight: normal;"><span style="color: #741b47;">The concept of cooperation and help each other is determines
in Quran as Allah s.w.t has said</span><a href="file:///C:/Users/User/Desktop/MY%20DOCUMENTS/My%20DOCUMENTS%20(February%2001,%202013)/My%20IP/IP%20of%20Masum/Intellectual%20Properties%20(IP)/e-LEARNING%20Project/e-Learning%20(Materials)/Actuarial%20Science%20[30]/Pricings.doc#_ftn2" name="_ftnref2" style="mso-footnote-id: ftn2;" title=""><span class="MsoFootnoteReference"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: #741b47;">[2]</span></span></span><!--[endif]--></span></span></a><span style="color: #741b47;">:</span></span><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-style: normal; font-weight: normal;"><o:p><span style="color: #741b47;"> </span></o:p></span></div>
<span style="color: #741b47;">
</span><span style="color: #741b47;"><span dir="RTL" lang="AR-SA" style="color: blue; font-family: "Times New Roman","serif"; font-size: 14pt; font-style: normal; font-weight: normal; mso-ansi-font-style: italic; mso-ansi-font-weight: bold; mso-ascii-font-family: "Bookman Old Style"; mso-hansi-font-family: "Bookman Old Style";"><span class="apple-style-span"><span dir="LTR" style="color: #004080; font-family: "Tahoma","sans-serif"; font-size: 14pt; line-height: 107%; mso-bidi-font-family: "DecoType Naskh Variants";"><o:p> </o:p></span></span></span></span><span style="color: #741b47;"><span dir="RTL" lang="AR-SA" style="color: blue; font-family: "Times New Roman","serif"; font-size: 14pt; font-style: normal; font-weight: normal; mso-ansi-font-style: italic; mso-ansi-font-weight: bold; mso-ascii-font-family: "Bookman Old Style"; mso-hansi-font-family: "Bookman Old Style";"></span></span><br />
<span style="color: #741b47;"><span dir="RTL" lang="AR-SA" style="color: blue; font-family: "Times New Roman","serif"; font-size: 14pt; font-style: normal; font-weight: normal; mso-ansi-font-style: italic; mso-ansi-font-weight: bold; mso-ascii-font-family: "Bookman Old Style"; mso-hansi-font-family: "Bookman Old Style";"><div class="MsoBodyText" style="margin: 0cm 0cm 0pt; text-align: center;">
<span style="color: black; font-size: small;">
<span class="apple-style-span"><span style="color: #004080; font-family: "AGA Arabesque"; font-size: 14pt; line-height: 107%; mso-ansi-language: EN-US; mso-ascii-font-family: Tahoma; mso-bidi-font-family: "DecoType Naskh Variants"; mso-bidi-language: AR-SA; mso-char-type: symbol; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin; mso-hansi-font-family: Tahoma; mso-symbol-font-family: "AGA Arabesque";"><span style="mso-char-type: symbol; mso-symbol-font-family: "AGA Arabesque";">}</span></span></span></span><span class="apple-style-span"><span dir="RTL" lang="AR-SA" style="color: #004080; font-family: "DecoType Naskh Variants"; font-size: 14pt; line-height: 107%; mso-ansi-language: EN-US; mso-ascii-font-family: Tahoma; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin; mso-hansi-font-family: Tahoma;">وَتَعَاوَنُوا عَلَى
الْبِرِّ وَالتَّقْوَىٰ <span class="apple-style-span"><span dir="LTR" style="color: #004080; font-family: "AGA Arabesque"; font-size: 14pt; line-height: 107%; mso-ascii-font-family: Tahoma; mso-bidi-font-family: "DecoType Naskh Variants"; mso-char-type: symbol; mso-hansi-font-family: Tahoma; mso-symbol-font-family: "AGA Arabesque";"><span dir="LTR"></span><span dir="LTR"></span><span style="mso-char-type: symbol; mso-symbol-font-family: "AGA Arabesque";">{</span></span></span></span></span></div>
</span><div class="MsoBodyText" style="margin: 0cm 0cm 0pt;">
<br /></div>
</span><div class="MsoBodyText" style="margin: 0cm 0cm 0pt;">
<span style="color: #741b47;"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-style: normal; font-weight: normal;">In responding to this verse, the actuary and pricing
department has responsible to prepare costing for the new product by looking
into mobility rates and mortality rates as a consideration. The mortality rates
and mobility rates should come from the primary sources or originally result
from the research which done by the marketing department in Takaful itself. It
is due to emphasize of pure and quality product offers to the society. However,
the way that the fixed the price must be also influenced by the profit of
company as well as the welfare of society.<o:p></o:p></span></span></div>
<span style="color: #741b47;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-style: normal; font-weight: normal;"></span></span><br />
<span style="color: #741b47;"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-style: normal; font-weight: normal;">Takaful also emphasizes regarding the cooperation in helping
each other between participant and operator. The participant is contributes of
certain amounts in the Takaful plan, as a result the operator will provide the
coverage accordingly. Similarly happens in the Mudharabah fund whereas the
sharing of profit and lost will divides into a portion that agreed by the
participant and operator at the beginning of the contract. Therefore, there is
no issue on misallocation of fund or breach of trust. </span><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-style: normal; font-weight: normal;"><o:p> </o:p></span></span><br />
<span style="color: #741b47;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-style: normal; font-weight: normal;"></span></span><br />
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-style: normal; font-weight: normal;"><span style="color: #741b47;">Briefly, the roles of actuary and pricing department are:<o:p></o:p></span></span><br />
<span style="color: #741b47;">
</span><br />
<div class="MsoBodyText" style="margin: 0cm 0cm 0pt 21.6pt; mso-list: l8 level1 lfo6; tab-stops: list 21.6pt; text-indent: -18pt;">
<!--[if !supportLists]--><span style="color: #741b47;"><span lang="EN-US" style="color: blue; font-family: Symbol; font-style: normal; font-weight: normal; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><!--[endif]--><span dir="LTR"></span><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-style: normal; font-weight: normal;">Calculating cost for new product by referring to mobility
rates, mortality rates, projector investment return, information from marketing
research as well as needs of the society. <o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoBodyText" style="margin: 0cm 0cm 0pt 21.6pt; mso-list: l15 level1 lfo7; tab-stops: list 21.6pt; text-indent: -18pt;">
<!--[if !supportLists]--><span style="color: #741b47;"><span lang="EN-US" style="color: blue; font-family: Symbol; font-style: normal; font-weight: normal; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><!--[endif]--><span dir="LTR"></span><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-style: normal; font-weight: normal;">Providing a value product to the company.<o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoBodyText" style="margin: 0cm 0cm 0pt 21.6pt; mso-list: l14 level1 lfo8; tab-stops: list 21.6pt; text-indent: -18pt;">
<!--[if !supportLists]--><span style="color: #741b47;"><span lang="EN-US" style="color: blue; font-family: Symbol; font-style: normal; font-weight: normal; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><!--[endif]--><span dir="LTR"></span><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-style: normal; font-weight: normal;">Submitting the proposal of costing for the management
approval.<o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoBodyText" style="margin: 0cm 0cm 0pt 21.6pt; mso-list: l11 level1 lfo9; tab-stops: list 21.6pt; text-indent: -18pt;">
<!--[if !supportLists]--><span style="color: #741b47;"><span lang="EN-US" style="color: blue; font-family: Symbol; font-style: normal; font-weight: normal; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><!--[endif]--><span dir="LTR"></span><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-style: normal; font-weight: normal;">Submitting to the actuary and Bank Negara <st1:country-region w:st="on"><st1:place w:st="on">Malaysia</st1:place></st1:country-region> for
final approval.<o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoBodyText" style="margin: 0cm 0cm 0pt;">
<span style="color: #741b47;"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-style: normal; font-weight: normal;"><o:p> O</o:p></span><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-style: normal; font-weight: normal;">nly after getting the
approval from the BNM, the company can launch the product in the market. <o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoBodyText" style="margin: 0cm 0cm 0pt;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-style: normal; font-weight: normal;"><span style="color: #741b47;">Finally, factors that
influence the actuary department in preparing department are:<o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoBodyText" style="margin: 0cm 0cm 0pt 36pt; mso-list: l5 level1 lfo4; tab-stops: list 36.0pt; text-indent: -18pt;">
<!--[if !supportLists]--><span style="color: #741b47;"><span lang="EN-US" style="color: blue; font-family: Symbol; font-style: normal; font-weight: normal; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><!--[endif]--><span dir="LTR"></span><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-style: normal; font-weight: normal;">Rates of death in certain time<o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoBodyText" style="margin: 0cm 0cm 0pt 36pt; mso-list: l5 level1 lfo4; tab-stops: list 36.0pt; text-indent: -18pt;">
<!--[if !supportLists]--><span style="color: #741b47;"><span lang="EN-US" style="color: blue; font-family: Symbol; font-style: normal; font-weight: normal; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><!--[endif]--><span dir="LTR"></span><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-style: normal; font-weight: normal;">Information from the existing products that quite similar
(comparison)<o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoBodyText" style="margin: 0cm 0cm 0pt 36pt; mso-list: l5 level1 lfo4; tab-stops: list 36.0pt; text-indent: -18pt;">
<!--[if !supportLists]--><span style="color: #741b47;"><span lang="EN-US" style="color: blue; font-family: Symbol; font-style: normal; font-weight: normal; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><!--[endif]--><span dir="LTR"></span><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-style: normal; font-weight: normal;">Retakaful rate<o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoBodyText" style="margin: 0cm 0cm 0pt 36pt; mso-list: l5 level1 lfo4; tab-stops: list 36.0pt; text-indent: -18pt;">
<!--[if !supportLists]--><span style="color: #741b47;"><span lang="EN-US" style="color: blue; font-family: Symbol; font-style: normal; font-weight: normal; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><!--[endif]--><span dir="LTR"></span><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-style: normal; font-weight: normal;">Expectation of Profit<o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoBodyText" style="margin: 0cm 0cm 0pt 18pt;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-style: normal; font-weight: normal;"><o:p><span style="color: #741b47;"> </span></o:p></span></div>
<div class="MsoHeading7" style="margin: 0cm 0cm 0pt; text-indent: 0cm;">
<span lang="EN-US" style="color: magenta; font-family: "Bookman Old Style","serif"; text-decoration: none; text-underline: none;"><strong><span style="color: #741b47;">SHARI'AH RULINGS<o:p></o:p></span></strong></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span style="color: #741b47;"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><o:p> </o:p></span><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";">The whole
law is permeated by religious and ethical consideration, where each
institution, transaction or obligation is measured by the standard of religious
and moral rules. For instance the prohibition of interest and uncertainties,
the concern for the equality of the two parties and the concern for the just
average (<i style="mso-bidi-font-style: normal;">mithl</i>).<o:p></o:p></span></span></div>
<span style="color: #741b47;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"></span></span><br />
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><span style="color: #741b47;">The basic
rule of Shari’ah ruling of Takaful is based on mutual co-operation between two
parties as it is stated in the Quranic ayah, Al-Maidah: 3</span><a href="file:///C:/Users/User/Desktop/MY%20DOCUMENTS/My%20DOCUMENTS%20(February%2001,%202013)/My%20IP/IP%20of%20Masum/Intellectual%20Properties%20(IP)/e-LEARNING%20Project/e-Learning%20(Materials)/Actuarial%20Science%20[30]/Pricings.doc#_ftn3" name="_ftnref3" style="mso-footnote-id: ftn3;" title=""><span class="MsoFootnoteReference"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: #741b47;">[3]</span></span></span><!--[endif]--></span></span></a><span style="color: #741b47;">;</span></span><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><o:p><span style="color: #741b47;"> </span></o:p></span><br />
<span style="color: #741b47;">
</span><br />
<div class="MsoHeading9" style="margin: 0cm 0cm 0pt; text-align: justify;">
<div style="text-align: center;">
<span style="font-size: large;"><span style="color: #741b47;"><span dir="RTL" lang="AR-SA" style="color: blue; mso-ascii-font-family: "Bookman Old Style"; mso-hansi-font-family: "Bookman Old Style";"><span style="color: black; font-size: small;">
</span></span></span></span><span style="font-size: large;"><span style="color: #741b47;"><span dir="RTL" lang="AR-SA" style="color: blue; mso-ascii-font-family: "Bookman Old Style"; mso-hansi-font-family: "Bookman Old Style";"><span class="apple-style-span"><span dir="LTR" style="color: #004080; font-family: "AGA Arabesque"; font-size: 14pt; line-height: 107%; mso-ascii-font-family: Tahoma; mso-bidi-font-family: "DecoType Naskh Variants"; mso-char-type: symbol; mso-hansi-font-family: Tahoma; mso-symbol-font-family: "AGA Arabesque";"><span style="mso-char-type: symbol; mso-symbol-font-family: "AGA Arabesque";">}</span></span></span><span class="apple-style-span"><span lang="AR-SA" style="color: #004080; font-family: "DecoType Naskh Variants"; font-size: 14pt; line-height: 107%; mso-ascii-font-family: Tahoma; mso-hansi-font-family: Tahoma;">وَتَعَاوَنُوا عَلَى الْبِرِّ
وَالتَّقْوَىٰ </span></span><span class="apple-style-span"><span lang="AR-SA" style="color: #004080; font-family: "Times New Roman","serif"; font-size: 14pt; line-height: 107%;">ۖ</span></span><span class="apple-style-span"><span lang="AR-SA" style="color: #004080; font-family: "DecoType Naskh Variants"; font-size: 14pt; line-height: 107%; mso-ascii-font-family: Tahoma; mso-hansi-font-family: Tahoma;"> وَلَا
تَعَاوَنُوا عَلَى الْإِثْمِ وَالْعُدْوَانِ </span></span><span class="apple-style-span"><span lang="AR-SA" style="color: #004080; font-family: "Times New Roman","serif"; font-size: 14pt; line-height: 107%;">ۚ</span></span><span class="apple-style-span"><span lang="AR-SA" style="color: #004080; font-family: "DecoType Naskh Variants"; font-size: 14pt; line-height: 107%; mso-ascii-font-family: Tahoma; mso-hansi-font-family: Tahoma;"> وَاتَّقُوا اللَّهَ </span></span><span class="apple-style-span"><span lang="AR-SA" style="color: #004080; font-family: "Times New Roman","serif"; font-size: 14pt; line-height: 107%;">ۖ</span></span><span class="apple-style-span"><span lang="AR-SA" style="color: #004080; font-family: "DecoType Naskh Variants"; font-size: 14pt; line-height: 107%; mso-ascii-font-family: Tahoma; mso-hansi-font-family: Tahoma;"> إِنَّ اللَّهَ شَدِيدُ الْعِقَابِ</span></span><span dir="LTR"></span><span dir="LTR"></span><span class="apple-style-span"><span dir="LTR" style="color: #004080; font-family: "AGA Arabesque"; font-size: 14pt; line-height: 107%; mso-ascii-font-family: Tahoma; mso-bidi-font-family: "DecoType Naskh Variants"; mso-char-type: symbol; mso-hansi-font-family: Tahoma; mso-symbol-font-family: "AGA Arabesque";"><span dir="LTR"></span><span dir="LTR"></span><span style="mso-char-type: symbol; mso-symbol-font-family: "AGA Arabesque";">{</span></span></span></span></span></span></div>
<span style="font-size: large;"><span style="color: #741b47;"> </span></span><br />
<span style="font-size: large;"><span style="color: #741b47;">
</span></span><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><em><span style="color: #741b47;">“And
co-operate each ye one another in righteousness and piety, and do not
co-operate in sin and rancour”<o:p></o:p></span></em></span><br /></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span style="color: #741b47;"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";">From the
above verse, the Takaful relates to the mortality risk, which requires
appropriate protection from retakaful. Therefore, it shows the implication of
mutual co-operation between both parties.</span><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><o:p> </o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><span style="color: #741b47;">As an Islamic insurance, all activities
in Takaful are prevented from riba’. In other words, it is a prohibition of
interest as riba’ in the contractual agreement, as well as in determining the
pricing of takaful. Allah had said in surah Al-Baqarah, verse 278</span><a href="file:///C:/Users/User/Desktop/MY%20DOCUMENTS/My%20DOCUMENTS%20(February%2001,%202013)/My%20IP/IP%20of%20Masum/Intellectual%20Properties%20(IP)/e-LEARNING%20Project/e-Learning%20(Materials)/Actuarial%20Science%20[30]/Pricings.doc#_ftn4" name="_ftnref4" style="mso-footnote-id: ftn4;" title=""><span class="MsoFootnoteReference"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: #741b47;">[4]</span></span></span><!--[endif]--></span></span></a><span style="color: #741b47;">;</span></span><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><span style="color: #741b47;"><span style="mso-tab-count: 1;"> </span><o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<span style="font-size: large;"><span style="color: #741b47;"><span dir="RTL" lang="AR-SA" style="color: blue; mso-ascii-font-family: "Bookman Old Style"; mso-hansi-font-family: "Bookman Old Style";"><div align="center" class="MsoNormal" dir="RTL" style="direction: rtl; margin: 0in 0in 8pt; text-align: center; unicode-bidi: embed;">
<span class="apple-style-span"><span dir="LTR" style="color: #004080; font-family: "AGA Arabesque"; font-size: 14pt; line-height: 107%; mso-ascii-font-family: Tahoma; mso-bidi-font-family: "DecoType Naskh Variants"; mso-char-type: symbol; mso-hansi-font-family: Tahoma; mso-symbol-font-family: "AGA Arabesque";"><span style="mso-char-type: symbol; mso-symbol-font-family: "AGA Arabesque";">}</span></span></span><span class="apple-style-span"><span lang="AR-SA" style="color: #004080; font-family: "DecoType Naskh Variants"; font-size: 14pt; line-height: 107%; mso-ascii-font-family: Tahoma; mso-hansi-font-family: Tahoma;">وَأَحَلَّ اللَّهُ الْبَيْعَ
وَحَرَّمَ الرِّبَا </span></span><span class="apple-style-span"><span lang="AR-SA" style="color: #004080; font-family: "Times New Roman","serif"; font-size: 14pt; line-height: 107%;">ۚ</span></span><span dir="LTR"></span><span dir="LTR"></span><span class="apple-style-span"><span dir="LTR" style="color: #004080; font-family: "AGA Arabesque"; font-size: 14pt; line-height: 107%; mso-ascii-font-family: Tahoma; mso-bidi-font-family: "DecoType Naskh Variants"; mso-char-type: symbol; mso-hansi-font-family: Tahoma; mso-symbol-font-family: "AGA Arabesque";"><span dir="LTR"></span><span dir="LTR"></span><span style="mso-char-type: symbol; mso-symbol-font-family: "AGA Arabesque";">{</span></span></span></div>
</span></span><div class="MsoNormal" dir="RTL" style="direction: rtl; margin: 0in 0in 8pt; text-align: center; unicode-bidi: embed;">
<span style="font-size: small;">
</span><div align="center" class="MsoNormal" dir="RTL" style="direction: rtl; margin: 0in 0in 8pt; text-align: center; unicode-bidi: embed;">
<span style="font-size: small;"><strong><i><span style="color: #741b47;">“Allah had permitted trade, but not allowed Riba</span></i></strong><span dir="RTL"></span><span dir="RTL"></span><strong><i><span dir="RTL" lang="AR-SA" style="color: #741b47; mso-ascii-font-family: ""serif""; mso-hansi-font-family: ""serif"";"><span dir="RTL"></span><span dir="RTL"></span>”</span></i></strong></span></div>
<div class="MsoNormal" dir="RTL" style="direction: rtl; margin: 0in 0in 8pt; text-align: left; unicode-bidi: embed;">
<span style="font-size: small;"><strong><i><span dir="RTL" lang="AR-SA" style="color: #741b47; mso-ascii-font-family: ""serif""; mso-hansi-font-family: ""serif"";"></span></i></strong></span><br /></div>
</div>
</span><div class="MsoNormal" dir="RTL" style="direction: rtl; margin: 0in 0in 8pt; text-align: left; unicode-bidi: embed;">
<span style="color: #741b47;"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";">In Islamic law, Islam emphasizes the
fairness in dealing any transaction and avoids unjustified enrichment at the
expense of others. Therefore, Shariah obligation provides the justice (‘adl)
principle for welfare to others a stated in the Holy Qur’an, 3:77<a href="file:///C:/Users/User/Desktop/MY%20DOCUMENTS/My%20DOCUMENTS%20(February%2001,%202013)/My%20IP/IP%20of%20Masum/Intellectual%20Properties%20(IP)/e-LEARNING%20Project/e-Learning%20(Materials)/Actuarial%20Science%20[30]/Pricings.doc#_ftn5" name="_ftnref5" style="mso-footnote-id: ftn5;" title=""><span class="MsoFootnoteReference"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[5]</span></span><!--[endif]--></span></span></a>;</span><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><o:p> </o:p></span></span></div>
<span style="color: #741b47;">
</span><span dir="RTL" lang="AR-SA" style="color: blue; font-size: 14pt; mso-ascii-font-family: "Bookman Old Style"; mso-hansi-font-family: "Bookman Old Style";"><span style="color: #741b47;"></span></span><br />
<span dir="RTL" lang="AR-SA" style="color: blue; font-size: 14pt; mso-ascii-font-family: "Bookman Old Style"; mso-hansi-font-family: "Bookman Old Style";"><span style="color: #741b47;"><div class="MsoNormal" dir="RTL" style="direction: rtl; margin: 0in 0in 8pt; text-align: justify; unicode-bidi: embed;">
<span class="apple-style-span"><span dir="LTR" style="color: #004080; font-family: "AGA Arabesque"; font-size: 14pt; line-height: 107%; mso-ascii-font-family: Tahoma; mso-bidi-font-family: "DecoType Naskh Variants"; mso-char-type: symbol; mso-hansi-font-family: Tahoma; mso-symbol-font-family: "AGA Arabesque";"><span style="mso-char-type: symbol; mso-symbol-font-family: "AGA Arabesque";">}</span></span></span><span class="apple-style-span"><span lang="AR-SA" style="color: #004080; font-family: "DecoType Naskh Variants"; font-size: 14pt; line-height: 107%; mso-ascii-font-family: Tahoma; mso-hansi-font-family: Tahoma;">إِنَّ الَّذِينَ يَشْتَرُونَ
بِعَهْدِ اللَّهِ وَأَيْمَانِهِمْ ثَمَنًا قَلِيلًا أُولَٰئِكَ لَا خَلَاقَ لَهُمْ
فِي الْآخِرَةِ وَلَا يُكَلِّمُهُمُ اللَّهُ وَلَا يَنظُرُ إِلَيْهِمْ يَوْمَ
الْقِيَامَةِ وَلَا يُزَكِّيهِمْ وَلَهُمْ عَذَابٌ أَلِيمٌ</span></span><span dir="LTR"></span><span dir="LTR"></span><span class="apple-style-span"><span dir="LTR" style="color: #004080; font-family: "AGA Arabesque"; font-size: 14pt; line-height: 107%; mso-ascii-font-family: Tahoma; mso-bidi-font-family: "DecoType Naskh Variants"; mso-char-type: symbol; mso-hansi-font-family: Tahoma; mso-symbol-font-family: "AGA Arabesque";"><span dir="LTR"></span><span dir="LTR"></span><span style="mso-char-type: symbol; mso-symbol-font-family: "AGA Arabesque";">{</span></span></span><span class="apple-style-span"><span dir="LTR" style="color: #004080; font-family: "Tahoma","sans-serif"; font-size: 14pt; line-height: 107%; mso-bidi-font-family: "DecoType Naskh Variants";"><o:p></o:p></span></span></div>
</span><div class="MsoNormal" dir="RTL" style="direction: rtl; margin: 0in 0in 8pt; text-align: left; unicode-bidi: embed;">
<em><span dir="RTL" lang="AR-SA" style="color: #741b47; mso-ascii-font-family: ""serif""; mso-hansi-font-family: ""serif"";"><span style="font-size: small;">“</span></span></em><span style="font-size: small;"><em><span style="color: #741b47;">As for those who sell faith
they owe to God and their own plighted word for a small price, they shall have
no portion in the Hereafter: Nor will God (deign to) speak to them or look at
them on the Day of Judgment, nor will He cleans them (of sin), they shall have
a grievous penalty</span></em><span dir="RTL"></span><span dir="RTL"></span><em><span dir="RTL" lang="AR-SA" style="color: #741b47; mso-ascii-font-family: ""serif""; mso-hansi-font-family: ""serif"";"><span dir="RTL"></span><span dir="RTL"></span>”</span></em><o:p></o:p></span></div>
<span style="font-size: small;"><span style="color: black;">
</span></span></span><span style="color: #741b47;"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";">From the verse,
Allah stated that every action of Muslims’ activities must follow the law of
Shariah, which is based on the Holy Qur’an as well as the implementation of
takaful that must be guided by Shariah laws. Otherwise, Allah promised a great
punishment to those who do not obey His command in Hereafter.<o:p></o:p></span></span><br />
<span style="color: #741b47;">
<span lang="EN-US" style="color: magenta; font-family: "Bookman Old Style","serif"; text-decoration: none; text-underline: none;"><strong><u></u></strong></span></span><br />
<span lang="EN-US" style="color: magenta; font-family: "Bookman Old Style","serif"; text-decoration: none; text-underline: none;"><strong><span style="color: #741b47;">ROLE OF ACTUARIES<o:p></o:p></span></strong></span><br />
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span style="color: #741b47;"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><o:p> The</o:p></span><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"> role
of actuary in Takaful is recognized under the Islamic Insurance (Takaful)
regulation, which contains three main areas;<o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<span style="color: #741b47;">
1. <i style="mso-bidi-font-style: normal;"><span lang="EN-US" style="font-family: "Bookman Old Style","serif";">Product
Certification<o:p></o:p></span></i></span><br />
<span style="color: #741b47;">
</span><span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt 36pt; text-align: justify;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><span style="color: #741b47;">A takaful
operator is required to submit the regulatory authority (Bank Negara)
certification by an actuary who certifies that the premium basis of any life
insurance product or as the takaful contribution basis of any product of the
Family Takaful Business is based on sound principles.<o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt 18pt; text-align: justify;">
<span style="color: #741b47;"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><o:p> 2. </o:p></span><i style="mso-bidi-font-style: normal;"><span lang="EN-US" style="font-family: "Bookman Old Style","serif";">Actuarial
Valuation<o:p></o:p></span></i></span></div>
<span style="color: #741b47;">
</span><span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt 36pt; text-align: justify;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><span style="color: #741b47;">A Takaful
operator is required to submit yearly to Bank Negara an actuary report on the
actuarial investigation the financial condition of the life insurance found, as
well as the part of Family Takaful Business specifically allocated for the
payment of the takaful benefits.<o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt 18pt; text-align: justify;">
<span style="color: #741b47;"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><o:p> 3. </o:p></span><i style="mso-bidi-font-style: normal;"><span lang="EN-US" style="font-family: "Bookman Old Style","serif";">Appointed
Actuary<o:p></o:p></span></i></span></div>
<span style="color: #741b47;">
</span><span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt 36pt; text-align: justify;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><span style="color: #741b47;">A takaful
operator must have an appointed actuary who has responsibility to the report to
the Bank Negara should he/she fails to take the necessary steps to address the
issues that may expose the company to undue risk of being insolvent.<o:p></o:p></span></span></div>
<span style="color: #741b47;">
<span lang="EN-US" style="color: magenta; font-family: "Bookman Old Style","serif"; text-decoration: none; text-underline: none;"><strong><u></u></strong></span></span><br />
<span lang="EN-US" style="color: magenta; font-family: "Bookman Old Style","serif"; text-decoration: none; text-underline: none;"><strong><span style="color: #741b47;">Actuarial Techniques (pricing techniques/theory)<o:p></o:p></span></strong></span><br />
<span style="color: #741b47;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"></span></span><br />
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><span style="color: #741b47;">From our
resources, there are two techniques that have been applied in takaful
operation, which are; 1) Theory of Compound Interest, and, 2) Time Consideration.<o:p></o:p></span></span><br />
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><span style="color: #741b47;">Theory of
compound interest is applicable in the Family Takaful Business where
anticipating a certain conservative investment return that can be obtained from
the investment. The lump sum of takaful contribution that the takaful operator
received upfront can reduce the lump sum or single takaful contribution under
the Mortgage Takaful Plan<o:p></o:p></span></span></div>
<span style="color: #741b47;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"></span></span><br />
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><span style="color: #741b47;">The
second technique is time consideration in the business transaction. In Family
Takaful Plan, it is possible to have tabarru’ rate for monthly installment to
be higher than that for the yearly installment.<o:p></o:p></span></span><br />
<span style="color: #741b47;">
</span><br />
<span style="color: #741b47;">
</span><span lang="EN-US" style="color: magenta; font-family: "Bookman Old Style","serif"; text-decoration: none; text-underline: none;"><strong><span style="color: black;">Actuarial Valuation<o:p></o:p></span></strong></span><br />
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span style="color: #741b47;"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><o:p> </o:p></span><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";">The
actuarial valuation involves valuing the future obligations under the policy
contracts. It entails making assumptions as the future mortality risk,
investment return and expenses.<o:p></o:p></span></span></div>
<span style="color: #741b47;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"></span></span><br />
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><span style="color: #741b47;">There are three
common valuation methods in takaful, which are; <o:p></o:p></span></span><br />
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt 36pt; mso-list: l9 level1 lfo2; tab-stops: list 36.0pt; text-align: justify; text-indent: -18pt;">
<!--[if !supportLists]--><span style="color: #741b47;"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; mso-bidi-font-family: "Bookman Old Style"; mso-fareast-font-family: "Bookman Old Style";"><span style="mso-list: Ignore;">1)<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><!--[endif]--><span dir="LTR"></span><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";">Net premium method, <o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt 36pt; mso-list: l9 level1 lfo2; tab-stops: list 36.0pt; text-align: justify; text-indent: -18pt;">
<!--[if !supportLists]--><span style="color: #741b47;"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; mso-bidi-font-family: "Bookman Old Style"; mso-fareast-font-family: "Bookman Old Style";"><span style="mso-list: Ignore;">2)<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><!--[endif]--><span dir="LTR"></span><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";">Gross/office method,
and <o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt 36pt; mso-list: l9 level1 lfo2; tab-stops: list 36.0pt; text-align: justify; text-indent: -18pt;">
<!--[if !supportLists]--><span style="color: #741b47;"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; mso-bidi-font-family: "Bookman Old Style"; mso-fareast-font-family: "Bookman Old Style";"><span style="mso-list: Ignore;">3)<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><!--[endif]--><span dir="LTR"></span><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";">Bonus reserve
method.<o:p></o:p></span></span></div>
<span style="color: #741b47;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"></span></span><br />
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><span style="color: #741b47;">In the net premium method, the premium valued is the net or pure
premium calculated based on the valuation assumption relating the mortality and
investment return.<o:p></o:p></span></span><br />
<span style="color: #741b47;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"></span></span><br />
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><span style="color: #741b47;">While, under the gross premium method, the premium is the actual
office premium less a specific estimate of the likely future expense.<o:p></o:p></span></span><br />
<span style="color: #741b47;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><span style="mso-tab-count: 1;"> </span></span><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"></span></span><br />
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><span style="color: #741b47;">The bonus reserve method is similar to the gross premium method,
but with an additional item be valued as a liability namely, the future bonus
that expected to be declared.<o:p></o:p></span></span><br />
<span style="color: #741b47;">
<span lang="EN-US" style="color: magenta; font-family: "Bookman Old Style","serif"; text-decoration: none; text-underline: none;"><strong></strong></span></span><br />
<span lang="EN-US" style="color: magenta; font-family: "Bookman Old Style","serif"; text-decoration: none; text-underline: none;"><strong><span style="color: #741b47;">PRACTICAL SCENARIO 1 <o:p></o:p></span></strong></span><br />
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><span style="color: #741b47;">En.Ramli has taken
Family Takaful Plan and the maturity period for his plan is 30 years. Now he is
27 years old. The amount of the policy is RM 30 000. He is contributing RM
83.33 every month. He is wondering how the premium is fixed and if something
happens to him within period. How much he will get from the Tabarru’ fund as a
claim?<o:p></o:p></span></span></div>
<span style="color: #741b47;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><o:p> </o:p></span></span><br />
<span style="color: #741b47;">
</span><span lang="EN-US" style="color: magenta; font-family: "Bookman Old Style","serif"; text-decoration: none; text-underline: none;"><strong><span style="color: #741b47;">Application<o:p></o:p></span></strong></span><br />
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span style="color: #741b47;"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><o:p> </o:p></span><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";">The calculation as
shown below as implied by Actuaries Department.<o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span style="color: #741b47;"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><o:p> </o:p></span><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><u><span style="font-size: small;">Total
fund <o:p></o:p></span></u></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><o:p><span style="color: #741b47;"> </span></o:p></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><span style="color: #741b47;">No of years x 12<span style="mso-tab-count: 1;"> </span><span style="mso-spacerun: yes;"> </span><span style="mso-tab-count: 1;"> </span><span style="mso-spacerun: yes;"> </span>= <span style="mso-tab-count: 1;"> </span><u>30 000<o:p></o:p></u></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt 18pt; text-align: justify;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><span style="color: #741b47;"><span style="mso-tab-count: 5;"> </span>30 x 12<o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt 18pt; text-align: justify;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><o:p><span style="color: #741b47;"> </span></o:p></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt 18pt; text-align: justify;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><span style="color: #741b47;"><span style="mso-tab-count: 4;"> </span>=<span style="mso-tab-count: 1;"> </span><u>30 000<o:p></o:p></u></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt 18pt; text-align: justify;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><span style="color: #741b47;"><span style="mso-tab-count: 5;"> </span><span style="mso-spacerun: yes;"> </span>360<o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt 18pt; text-align: justify;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><span style="color: #741b47;"><span style="mso-tab-count: 4;"> </span>=<span style="mso-tab-count: 1;"> </span>83.33<span style="mso-spacerun: yes;">
</span>(monthly)<o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><o:p><span style="color: #741b47;"> </span></o:p></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span style="color: #741b47;"><u>In Tabbarr</u>u’<span style="mso-tab-count: 1;"> </span><span style="mso-tab-count: 2;"> </span>=<span style="mso-tab-count: 1;"> </span><u>83.33 x 8.3<o:p></o:p></u></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt 18pt; text-align: justify;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><span style="color: #741b47;"><span style="mso-tab-count: 5;"> </span><span style="mso-spacerun: yes;"> </span>100<o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt 18pt; text-align: justify;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><span style="color: #741b47;"><span style="mso-tab-count: 4;"> </span>=<span style="mso-tab-count: 1;"> </span>6.92<o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><o:p><span style="color: #741b47;"> </span></o:p></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><o:p><span style="color: #741b47;"> </span></o:p></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span style="color: #741b47;"><u><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";">In Mudharabah</span></u><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><span style="mso-tab-count: 2;"> </span>=<span style="mso-tab-count: 1;"> </span><u>83.33
x<span style="mso-spacerun: yes;"> </span>91.7<o:p></o:p></u></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt 18pt; text-align: justify;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><span style="color: #741b47;"><span style="mso-tab-count: 5;"> </span><span style="mso-spacerun: yes;"> </span>100<o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt 18pt; text-align: justify;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><span style="color: #741b47;"><span style="mso-tab-count: 4;"> </span>=<span style="mso-tab-count: 1;"> </span>76.41<o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span style="color: #741b47;"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><o:p> </o:p></span><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";">If let say, he die
at the age of 40 years old. He already contributes in the policy for 13 years.
Therefore, his nominated beneficiary has a right to claim the money.<o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><span style="color: #741b47;">The calculation as
showed below:<o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><o:p><span style="color: #741b47;"> </span></o:p></span><span style="height: 21px; left: 0px; margin: 13px auto auto 167px; mso-ignore: vglayout; position: absolute; width: 2px; z-index: 251644928;"><span style="color: #741b47;"><img height="21" src="file:///C:/Users/User/AppData/Local/Temp/msohtmlclip1/01/clip_image001.gif" v:shapes="_x0000_s1029" width="2" /></span></span><!--[endif]--><!--[if gte vml 1]><v:line id="_x0000_s1028"
style='position:absolute;left:0;text-align:left;z-index:251643904' from="291.6pt,10.85pt"
to="291.6pt,25.25pt" o:allowincell="f"/><![endif]--><!--[if !vml]--><span style="height: 21px; left: 0px; margin: 13px auto auto 387px; mso-ignore: vglayout; position: absolute; width: 2px; z-index: 251643904;"><span style="color: #741b47;"><img height="21" src="file:///C:/Users/User/AppData/Local/Temp/msohtmlclip1/01/clip_image002.gif" v:shapes="_x0000_s1028" width="2" /></span></span><!--[endif]--><!--[if gte vml 1]><v:line id="_x0000_s1027"
style='position:absolute;left:0;text-align:left;z-index:251642880' from="18pt,10.85pt"
to="18pt,25.25pt" o:allowincell="f"/><![endif]--><!--[if !vml]--><span style="height: 21px; left: 0px; margin: 13px auto auto 23px; mso-ignore: vglayout; position: absolute; width: 2px; z-index: 251642880;"><span style="color: #741b47;"><img height="21" src="file:///C:/Users/User/AppData/Local/Temp/msohtmlclip1/01/clip_image001.gif" v:shapes="_x0000_s1027" width="2" /></span></span><!--[endif]--><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><span style="color: #741b47;"><span style="mso-tab-count: 5;"> </span>Risk
Period<o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt 18pt; text-align: justify;">
<span style="color: #741b47;"><!--[if gte vml 1]><v:line
id="_x0000_s1026" style='position:absolute;left:0;text-align:left;flip:y;
z-index:251641856' from="18pt,4.25pt" to="291.6pt,4.25pt" o:allowincell="f"/><![endif]--><!--[if !vml]--></span><br /></div>
<span style="mso-ignore: vglayout;"></span><br />
<span style="mso-ignore: vglayout;"></span><br />
<span style="mso-ignore: vglayout;"></span><br />
<span style="mso-ignore: vglayout;"></span><br />
<span style="mso-ignore: vglayout;"><div class="MsoNormal" style="margin: 0cm 0cm 0pt 18pt; text-align: justify;">
<span style="color: #741b47;">
</span></div>
<span style="color: #741b47;">
</span><span style="color: #741b47;">
</span><span style="color: #741b47;">
</span><span style="color: #741b47;">
</span><span style="color: #741b47;">
</span><span style="color: #741b47;">
</span><span style="color: #741b47;">
</span><span style="color: #741b47;">
</span><table align="left" cellpadding="0" cellspacing="0"><tbody>
<tr><td height="4" style="background-color: transparent; border: rgb(0, 0, 0);" width="23"></td></tr>
<tr><td style="background-color: transparent; border: rgb(0, 0, 0);"></td><td style="background-color: transparent; border: rgb(0, 0, 0);"><span style="color: #741b47;"><img height="2" src="file:///C:/Users/User/AppData/Local/Temp/msohtmlclip1/01/clip_image003.gif" v:shapes="_x0000_s1026" width="366" /></span></td></tr>
</tbody></table>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt 18pt; text-align: justify;">
<span style="color: #741b47;">
</span></div>
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt 18pt; text-align: justify;">
<!--[endif]--><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><o:p><span style="color: #741b47;"> </span></o:p></span></div>
<span style="color: #741b47;">
<br clear="ALL" style="mso-ignore: vglayout;" />
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><span style="color: #741b47;"><span style="mso-tab-count: 3;"> </span><span style="mso-spacerun: yes;"> </span>13<span style="mso-tab-count: 5;"> </span>30yr
( maturity)<o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt 18pt; text-align: justify;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><span style="color: #741b47;"><span style="mso-tab-count: 3;"> </span><span style="mso-spacerun: yes;"> </span>die<o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<h2 style="margin: 0cm 0cm 0pt;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><u><span style="font-size: small;"><span style="color: #741b47;">In
Mudharabah<o:p></o:p></span></span></u></span></h2>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span style="color: #741b47;"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><o:p> </o:p></span><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";">83.33 x ( 13yr x 12
)<span style="mso-tab-count: 1;"> </span><span style="mso-spacerun: yes;">
</span>=<span style="mso-spacerun: yes;"> </span>122<span style="mso-spacerun: yes;"> </span>999.48<o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span style="color: #741b47;"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><o:p> </o:p></span><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";">If let say the
profit of 13 years is RM 3000 in ratio of 60: 40<o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span style="color: #741b47;"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><o:p> </o:p></span><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";">Therefore, the
participant may receives 40% from the profit investment, which is 1200. <o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><span style="color: #741b47;">So,<span style="mso-spacerun: yes;"> </span>12 999.48 +<span style="mso-spacerun: yes;">
</span>1200 = 14 199.48<o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span style="color: #741b47;"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><o:p> </o:p></span><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";">Total Fund<span style="mso-tab-count: 1;"> </span>=<span style="mso-tab-count: 1;"> </span>83.33<span style="mso-spacerun: yes;"> </span>monthly<span style="mso-spacerun: yes;">
</span>x<span style="mso-spacerun: yes;"> </span>17<span style="mso-spacerun: yes;"> </span>(remaining period)<o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><span style="color: #741b47;"><span style="mso-tab-count: 2;"> </span>=<span style="mso-tab-count: 1;"> </span>1416.61<o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span style="color: #741b47;"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><o:p> </o:p></span><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";">Therefore total
claimed can be made is:<o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span style="color: #741b47;"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><o:p> </o:p></span><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";">1414.61<span style="mso-spacerun: yes;"> </span>+<span style="mso-spacerun: yes;">
</span>14199.48<span style="mso-spacerun: yes;"> </span>=<span style="mso-spacerun: yes;"> </span>15616.09<o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span style="color: #741b47;"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><o:p> </o:p></span><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";">The amount 15616.09
can be claimed by the nominated and will be distributed to the beneficiary
according to faraidh.<o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span style="color: #741b47;"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><o:p> <strong><span style="color: #741b47;">P</span></strong></o:p></span></span><span lang="EN-US" style="color: magenta; font-family: "Bookman Old Style","serif"; text-decoration: none; text-underline: none;"><strong><span style="color: #741b47;">RACTICAL SCENARIO 2<o:p></o:p></span></strong></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span style="color: #741b47;"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><o:p> </o:p></span></b><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";">Issue </span></i></b><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";">:<span style="mso-spacerun: yes;"> </span>Non muslim or even muslim
people is preferable into conventional insurance rather than Takaful Insurance.<o:p></o:p></span></b></span></div>
<span style="color: #741b47;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"></span></span><br />
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><span style="color: #741b47;">Mr. Chong
and majority of his friends hold the policy of Kurnia Insurance. They thought
that this insurance is better among the other companies especially takaful
Insurance. Why?<o:p></o:p></span></span><br />
<span style="color: #741b47;">
<span lang="EN-US" style="color: magenta; font-family: "Bookman Old Style","serif"; text-decoration: none; text-underline: none;"><strong><u></u></strong></span></span><br />
<span lang="EN-US" style="color: magenta; font-family: "Bookman Old Style","serif"; text-decoration: none; text-underline: none;"><strong><span style="color: #741b47;">Application :<o:p></o:p></span></strong></span><br />
<span style="color: #741b47;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"></span></span><br />
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><span style="color: #741b47;">In
conventional, the transaction is based on buy and sale contract. Means the
company insurance as a seller while the policyholder known as a purchaser. In
term of claim, the policyholder has right to claim full amount from the
company.<span style="mso-spacerun: yes;"> </span>For example, if the holder has
bought the policy amounted RM1000, he would claim the RM1000 too. That is one
of strengthen of conventional insurance to attract more people to become of
their policyholder.<o:p></o:p></span></span><br />
<span style="color: #741b47;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"></span></span><br />
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><span style="color: #741b47;">Meanwhile,
the reason why the holder can’t claim the full amount in Takaful, it is due to
; the amount of contribution in Takaful is divided into 2 accounts known as
Participant Account (PA) and Participant Special Account (PSA).In this case,
the participant is allowed to claim the money only from PA. That’s the reason
why he/she cannot get the whole amount from the contribution. <o:p></o:p></span></span><br />
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span style="color: #741b47;"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><o:p> </o:p></span><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";">This role
has been stated in pricing procedure of Takaful, which is based on the shariah
principle.</span><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-size: 14pt;"><o:p></o:p></span></span></div>
<div style="text-align: center;">
<span style="color: #741b47;">
</span><span style="font-size: large;"><span style="color: #741b47;"><span dir="RTL" lang="AR-SA" style="color: blue; mso-ascii-font-family: "Bookman Old Style"; mso-hansi-font-family: "Bookman Old Style";"><span class="apple-style-span"><span dir="LTR" style="color: #004080; font-family: "AGA Arabesque"; font-size: 14pt; line-height: 107%; mso-ascii-font-family: Tahoma; mso-bidi-font-family: "DecoType Naskh Variants"; mso-char-type: symbol; mso-hansi-font-family: Tahoma; mso-symbol-font-family: "AGA Arabesque";"><span style="mso-char-type: symbol; mso-symbol-font-family: "AGA Arabesque";">}</span></span></span><span class="apple-style-span"><span lang="AR-SA" style="color: #004080; font-family: "DecoType Naskh Variants"; font-size: 14pt; line-height: 107%; mso-ascii-font-family: Tahoma; mso-hansi-font-family: Tahoma;">وَمَن يَبْتَغِ غَيْرَ الْإِسْلَامِ
دِينًا فَلَن يُقْبَلَ مِنْهُ وَهُوَ فِي الْآخِرَةِ مِنَ الْخَاسِرِينَ</span></span><span dir="LTR"></span><span dir="LTR"></span><span class="apple-style-span"><span dir="LTR" style="color: #004080; font-family: "AGA Arabesque"; font-size: 14pt; line-height: 107%; mso-ascii-font-family: Tahoma; mso-bidi-font-family: "DecoType Naskh Variants"; mso-char-type: symbol; mso-hansi-font-family: Tahoma; mso-symbol-font-family: "AGA Arabesque";"><span dir="LTR"></span><span dir="LTR"></span><span style="mso-char-type: symbol; mso-symbol-font-family: "AGA Arabesque";">{</span></span></span></span></span></span><span style="font-size: large;"></span></div>
<br />
<div class="MsoHeading8" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span style="color: #741b47;"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><em>“…if
anyone desires a system other than Islam never will it be accepted from him…”</em><a href="file:///C:/Users/User/Desktop/MY%20DOCUMENTS/My%20DOCUMENTS%20(February%2001,%202013)/My%20IP/IP%20of%20Masum/Intellectual%20Properties%20(IP)/e-LEARNING%20Project/e-Learning%20(Materials)/Actuarial%20Science%20[30]/Pricings.doc#_ftn6" name="_ftnref6" style="mso-footnote-id: ftn6;" title=""><span class="MsoFootnoteReference"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><em>[6]</em></span></b></span><!--[endif]--></span></span></a><o:p></o:p></span></span></div>
<span style="color: #741b47;">
<span lang="EN-US" style="color: magenta; font-family: "Bookman Old Style","serif"; text-decoration: none; text-underline: none;"><strong><u></u></strong></span></span><br />
<span lang="EN-US" style="color: magenta; font-family: "Bookman Old Style","serif"; text-decoration: none; text-underline: none;"><strong><span style="color: #741b47;">RECOMMENDATION<o:p></o:p></span></strong></span><br />
<span style="color: #741b47;">
</span><br />
<div class="MsoBodyTextIndent" style="line-height: normal; margin: 0cm 0cm 0pt 18pt; mso-list: l1 level1 lfo16; tab-stops: list 18.0pt; text-indent: -18pt;">
<!--[if !supportLists]--><span style="color: #741b47;"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-style: normal; mso-bidi-font-family: "Bookman Old Style"; mso-bidi-font-style: italic; mso-fareast-font-family: "Bookman Old Style";"><span style="mso-list: Ignore;">1.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><!--[endif]--><span dir="LTR"></span><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-style: normal; mso-bidi-font-style: italic;">Mostly, people did not
really understand what is the takaful pricing policy all about.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoBodyTextIndent" style="line-height: normal; margin: 0cm 0cm 0pt 18pt; mso-list: l1 level1 lfo16; tab-stops: list 18.0pt; text-indent: -18pt;">
<!--[if !supportLists]--><span style="color: #741b47;"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-style: normal; mso-bidi-font-family: "Bookman Old Style"; mso-bidi-font-style: italic; mso-fareast-font-family: "Bookman Old Style";"><span style="mso-list: Ignore;">2.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><!--[endif]--><span dir="LTR"></span><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-style: normal; mso-bidi-font-style: italic;">That’s the one reason
why they are more interested in conventional insurance. <o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoBodyTextIndent" style="line-height: normal; margin: 0cm 0cm 0pt 18pt; mso-list: l1 level1 lfo16; tab-stops: list 18.0pt; text-indent: -18pt;">
<!--[if !supportLists]--><span style="color: #741b47;"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-style: normal; mso-bidi-font-family: "Bookman Old Style"; mso-bidi-font-style: italic; mso-fareast-font-family: "Bookman Old Style";"><span style="mso-list: Ignore;">3.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><!--[endif]--><span dir="LTR"></span><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-style: normal; mso-bidi-font-style: italic;">Therefore, Takaful
agent needs to increase promotion and give detail information about the Takaful
policy and procedure, which is totally based on the shariah rulings.<o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoBodyTextIndent" style="line-height: normal; margin: 0cm 0cm 0pt 18pt; mso-list: l1 level1 lfo16; tab-stops: list 18.0pt; text-indent: -18pt;">
<!--[if !supportLists]--><span style="color: #741b47;"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-style: normal; mso-bidi-font-family: "Bookman Old Style"; mso-bidi-font-style: italic; mso-fareast-font-family: "Bookman Old Style";"><span style="mso-list: Ignore;">4.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span></b><!--[endif]--><span dir="LTR"></span><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-style: normal; mso-bidi-font-style: italic;">Beside the pamphlet or brochure provided, Takaful
is encourage including the detail and attractive information via the Internet.<b style="mso-bidi-font-weight: normal;"><u><o:p></o:p></u></b></span></span></div>
<span style="color: #741b47;">
<span lang="EN-US" style="color: magenta; font-family: "Bookman Old Style","serif"; text-decoration: none; text-underline: none;"><strong><u></u></strong></span></span><br />
<span lang="EN-US" style="color: magenta; font-family: "Bookman Old Style","serif"; text-decoration: none; text-underline: none;"><strong><span style="color: #741b47;">PRACTICAL SCENARIO 3<o:p></o:p></span></strong></span><br />
<span style="color: #741b47;">
</span><br />
<div class="MsoBodyTextIndent" style="line-height: normal; margin: 0cm 0cm 0pt;">
<span style="color: #741b47;"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><em>Issue:</em></span></b><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-style: normal; mso-bidi-font-style: italic;"><span style="mso-spacerun: yes;">
</span>No claim until the end of maturity period<o:p></o:p></span></b></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><span style="color: #741b47;">En. Ahmad is one of the Takaful
participants in Motor Takaful. He should renew the policy for every year in 10
years. Fortunately, he does not make any claim until the end of year 10<sup><span style="font-size: x-small;">th</span></sup>
due to there be nothing happen on his vehicle. So, how Takaful categorizes this
case. Is it any benefit received by En.Ahmad in this situation?<o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span style="color: black;"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><o:p> </o:p></span><span lang="EN-US" style="color: magenta; font-family: "Bookman Old Style","serif"; text-decoration: none; text-underline: none;"><strong><span style="background-color: #741b47;">Application<o:p></o:p></span></strong></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><span style="color: #741b47;">Takaful provides the benefits for all
participants. There are two types of products; Family Takaful and General
Takaful. These two products have their own pricing procedure including how to
claim the amount if there is no risk occur until the end of maturity period.<o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><span style="color: #741b47;">For example, in motor insurance policy
in General Takaful, if the participant does not make any claim until at the end
of maturity period, he/she will get two benefits called; No Claim Benefit (NCB)
and Bonus.<o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><span style="color: #741b47;">The calculation has
been stated below which apply by Actuaries Department.<i style="mso-bidi-font-style: normal;"><o:p></o:p></i></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span style="color: #741b47;"><i style="mso-bidi-font-style: normal;"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><o:p> </o:p></span></i><i style="mso-bidi-font-style: normal;"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";">1.No Claim Benefit (NCB)<o:p></o:p></span></i></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span style="color: #741b47;"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><o:p> </o:p></span><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";">All countries have stated the law that
all insurance company should give NCB to the participant whom does not face
with any risk after the end of maturity period. They are given a discount off
at each time of their renewal.<o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><span style="color: #741b47;">As an illustration; <o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span style="color: #741b47;"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><o:p> </o:p></span><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><span style="mso-tab-count: 1;"> </span>Year<span style="mso-tab-count: 2;"> </span>Contribution
Amount<span style="mso-tab-count: 1;"> </span>Discount<span style="mso-tab-count: 1;"> </span>Total Pmt<o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><span style="color: #741b47;"><span style="mso-tab-count: 1;"> </span>1<span style="mso-tab-count: 2;"> </span>RM1000<span style="mso-tab-count: 3;"> </span><span style="mso-spacerun: yes;"> </span>-<span style="mso-tab-count: 2;"> </span>RM1000<o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><span style="color: #741b47;"><span style="mso-tab-count: 1;"> </span>2<span style="mso-tab-count: 2;"> </span>RM1000<span style="mso-tab-count: 3;"> </span><span style="mso-spacerun: yes;"> </span>25%<span style="mso-tab-count: 2;"> </span>RM750<o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt 18pt; text-align: justify; text-indent: 18pt;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><span style="color: #741b47;">3<span style="mso-tab-count: 2;"> </span>RM1000<span style="mso-tab-count: 3;"> </span><span style="mso-spacerun: yes;"> </span>30%<span style="mso-tab-count: 2;"> </span>RM700<o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt 18pt; text-align: justify; text-indent: 18pt;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><o:p><span style="color: #741b47;"> </span></o:p></span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<i style="mso-bidi-font-style: normal;"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><span style="color: #741b47;">Hadith: “ Muslims bound with the conditions, if it exceed the condition,
Muslims are permitted…”<o:p></o:p></span></span></i></div>
<span style="color: #741b47;">
<i style="mso-bidi-font-style: normal;"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"></span></i></span><br />
<i style="mso-bidi-font-style: normal;"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><span style="color: #741b47;">2.Bonus<o:p></o:p></span></span></i><br />
<span style="color: #741b47;">
</span><br />
<div class="MsoBodyTextIndent2" style="line-height: normal; margin: 0cm 0cm 0pt; text-indent: 0cm;">
<span style="color: #741b47;"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><o:p> </o:p></span><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";">Bonus is given to participant whose did not make any claim
until at the end of the maturity period. Actually, it is belong to the Takaful
Operator and not necessarily to give to the participant. It just as a gift or
appreciation to the participant.<o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><span style="color: #741b47;">Bonus Calculation:<o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoBodyText" style="margin: 0cm 0cm 0pt;">
<span style="color: #741b47;"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><o:p><strong><em> </em></strong></o:p></span><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><strong><em><span style="mso-spacerun: yes;"> </span>[Surplus Money – (Management
Cost + General Expense)] – Zakat = Net Profit<o:p></o:p></em></strong></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span style="color: #741b47;"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><o:p> </o:p></span><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";">For example:<o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><span style="color: #741b47;">The balances from
PSA amounted RM100. Management Cost=RM 30. General Expense = RM 10, and Zakat
is 1% from the balance. Therefore;<o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><span style="color: #741b47;">[RM 100 – ( RM 30 +
RM 10 )] – RM 6 = RM 54<o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><span style="color: #741b47;">So, RM 54 is known
as net profit where, some of the proportion will be distributed as bonus to
participant.<o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span style="color: #741b47;"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><o:p> </o:p></span><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";">The bonus can be
concluded as a sadaqah as stated in Quran, Al-Baqarah (276)<a href="file:///C:/Users/User/Desktop/MY%20DOCUMENTS/My%20DOCUMENTS%20(February%2001,%202013)/My%20IP/IP%20of%20Masum/Intellectual%20Properties%20(IP)/e-LEARNING%20Project/e-Learning%20(Materials)/Actuarial%20Science%20[30]/Pricings.doc#_ftn7" name="_ftnref7" style="mso-footnote-id: ftn7;" title=""><span class="MsoFootnoteReference"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[7]</span></span><!--[endif]--></span></span></a><o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><span style="color: #741b47;"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"> </span></span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span style="color: #741b47;"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><div class="MsoNormal" dir="RTL" style="direction: rtl; margin: 0in 0in 8pt; text-align: center; unicode-bidi: embed;">
<span class="apple-style-span"><span dir="LTR" style="color: #004080; font-family: "AGA Arabesque"; font-size: 14pt; line-height: 107%; mso-ascii-font-family: Tahoma; mso-bidi-font-family: "DecoType Naskh Variants"; mso-char-type: symbol; mso-hansi-font-family: Tahoma; mso-symbol-font-family: "AGA Arabesque";"><span style="mso-char-type: symbol; mso-symbol-font-family: "AGA Arabesque";">}</span></span></span><span class="apple-style-span"><span lang="AR-SA" style="color: #004080; font-family: "DecoType Naskh Variants"; font-size: 14pt; line-height: 107%; mso-ascii-font-family: Tahoma; mso-hansi-font-family: Tahoma;">يَمْحَقُ اللَّهُ الرِّبَا وَيُرْبِي
الصَّدَقَاتِ </span></span><span class="apple-style-span"><span lang="AR-SA" style="color: #004080; font-family: "Times New Roman","serif"; font-size: 14pt; line-height: 107%;">ۗ</span></span><span class="apple-style-span"><span lang="AR-SA" style="color: #004080; font-family: "DecoType Naskh Variants"; font-size: 14pt; line-height: 107%; mso-ascii-font-family: Tahoma; mso-hansi-font-family: Tahoma;"> وَاللَّهُ
لَا يُحِبُّ كُلَّ كَفَّارٍ أَثِيمٍ</span></span><span dir="LTR"></span><span dir="LTR"></span><span class="apple-style-span"><span dir="LTR" style="color: #004080; font-family: "AGA Arabesque"; font-size: 14pt; line-height: 107%; mso-ascii-font-family: Tahoma; mso-bidi-font-family: "DecoType Naskh Variants"; mso-char-type: symbol; mso-hansi-font-family: Tahoma; mso-symbol-font-family: "AGA Arabesque";"><span dir="LTR"></span><span dir="LTR"></span><span style="mso-char-type: symbol; mso-symbol-font-family: "AGA Arabesque";">{</span></span></span><span class="apple-style-span"><span dir="LTR" style="color: #004080; font-family: "Tahoma","sans-serif"; font-size: 14pt; line-height: 107%; mso-bidi-font-family: "DecoType Naskh Variants";"><o:p></o:p></span></span></div>
<span style="color: black; font-family: Times New Roman;">
</span></span></span><span style="color: #741b47;"><i style="mso-bidi-font-style: normal;"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";">“God will deprive usury of all blessing, but will give increase for
deeds of charity, for He loveth not creatures ungrateful and wicked”.<o:p></o:p></span></i></span><br /></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoHeading7" style="margin: 0cm 0cm 0pt; text-indent: 0cm;">
<span lang="EN-US" style="color: magenta; font-family: "Bookman Old Style","serif"; text-decoration: none; text-underline: none;"><strong><span style="color: #741b47;">RECOMMENDATION<o:p></o:p></span></strong></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span style="color: #741b47;"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><o:p> </o:p></span><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; mso-bidi-font-family: "Bookman Old Style"; mso-fareast-font-family: "Bookman Old Style";"><span style="mso-list: Ignore;">1.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><!--[endif]--><span dir="LTR"></span><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";">Takaful is
recommended to give the some proportion from net profit to the customers.<o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt 18pt; mso-list: l3 level1 lfo15; tab-stops: list 18.0pt; text-align: justify; text-indent: -18pt;">
<!--[if !supportLists]--><span style="color: #741b47;"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; mso-bidi-font-family: "Bookman Old Style"; mso-fareast-font-family: "Bookman Old Style";"><span style="mso-list: Ignore;">2.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><!--[endif]--><span dir="LTR"></span><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><span style="mso-spacerun: yes;"> </span>The offer is qualified for those who did not
make any claim until at the end of the maturity period. <o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt 18pt; mso-list: l3 level1 lfo15; tab-stops: list 18.0pt; text-align: justify; text-indent: -18pt;">
<!--[if !supportLists]--><span style="color: #741b47;"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; mso-bidi-font-family: "Bookman Old Style"; mso-fareast-font-family: "Bookman Old Style";"><span style="mso-list: Ignore;">3.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><!--[endif]--><span dir="LTR"></span><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";">Takaful should give
this bonus not as a choice that has been practiced before. <o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt 18pt; mso-list: l3 level1 lfo15; tab-stops: list 18.0pt; text-align: justify; text-indent: -18pt;">
<!--[if !supportLists]--><span style="color: #741b47;"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; mso-bidi-font-family: "Bookman Old Style"; mso-fareast-font-family: "Bookman Old Style";"><span style="mso-list: Ignore;">4.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><!--[endif]--><span dir="LTR"></span><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";">The bonus is
assuming as gift or reward on participant’s contribution. <o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt 18pt; mso-list: l3 level1 lfo15; tab-stops: list 18.0pt; text-align: justify; text-indent: -18pt;">
<!--[if !supportLists]--><span style="color: #741b47;"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; mso-bidi-font-family: "Bookman Old Style"; mso-fareast-font-family: "Bookman Old Style";"><span style="mso-list: Ignore;">5.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><!--[endif]--><span dir="LTR"></span><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";">Even there is no
bonus given, Takaful should offer any special facilities benefits for instance;
Offer the discount payment in other products package.<o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span style="color: #a64d79;"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><o:p> </o:p></span><span lang="EN-US" style="color: magenta; font-family: "Bookman Old Style","serif"; text-decoration: none; text-underline: none;"><strong>PRACTICAL SCENARIO 4<o:p></o:p></strong></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><span style="color: #741b47;">En. Hisham makes a
personal loan in Bank Rakyat amounted RM 10 000. He should pay back his loan
within 7 years with the rate 7.7%. He is required to take a life insurance in
Family Takaful. Now he is 45 years old (1957). What amount on his insurance?<o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span style="color: #741b47;"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><o:p> </o:p></span></span><span style="color: #741b47;"><span lang="EN-US" style="color: magenta; font-family: "Bookman Old Style","serif"; text-decoration: none; text-underline: none;"><strong>Application:<o:p></o:p></strong></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span style="color: #741b47;"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><o:p> </o:p></span><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";">Calculation:<o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt 36pt; mso-list: l0 level1 lfo3; tab-stops: list 36.0pt; text-align: justify; text-indent: -36pt;">
<!--[if !supportLists]--><span style="color: #741b47;"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; mso-bidi-font-family: "Bookman Old Style"; mso-fareast-font-family: "Bookman Old Style";"><span style="mso-list: Ignore;">i)<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><!--[endif]--><span dir="LTR"></span><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";">Find the group of
age of En. Hisham <o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify; text-indent: 36pt;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><span style="color: #741b47;">103 – 57
= 46<o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify; text-indent: 36pt;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><span style="color: #741b47;">(Group of
age is 46)<o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt 36pt; mso-list: l0 level1 lfo3; tab-stops: list 36.0pt; text-align: justify; text-indent: -36pt;">
<!--[if !supportLists]--><span style="color: #741b47;"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; mso-bidi-font-family: "Bookman Old Style"; mso-fareast-font-family: "Bookman Old Style";"><span style="mso-list: Ignore;">ii)<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><!--[endif]--><span dir="LTR"></span><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";">Refer to the rate
given in Takaful Scheme in Family Takaful Scheme<o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt 36pt; text-align: justify;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><span style="color: #741b47;">Let say,
the rate given is 38.77%, <o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><span style="color: #741b47;">iii)<span style="mso-tab-count: 1;"> </span>The amount of insurance is:<o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt 36pt; text-align: justify;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><span style="color: #741b47;">38.77 x
10 000 = RM 387700<o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt 36pt; text-align: justify;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><span style="color: #741b47;">387700/1000
= RM 388<o:p></o:p></span></span></div>
<span style="color: #741b47;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"></span></span><br />
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><span style="color: #741b47;">Bank
Rakyat has paid the amount of RM388 to Takaful insurance on behalf of
En.Hisham. Bank Rakyat can make a claim from Takaful if there is anything
happen on En.Hisham in future such as death. This is one<span style="mso-tab-count: 1;"> </span> of a sample of calculation in determining of pricing in Takaful
policy.<o:p></o:p></span></span><br />
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><span style="color: #741b47;">Then, in Takaful operation, this amount
(RM388) will be divided in to two accounts; PSA which is based on Tabarru’ fund
and PA which based on Mudharabah. The claim can be made only from PA.<o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span style="color: #741b47;"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><o:p> </o:p></span><span lang="EN-US" style="color: magenta; font-family: "Bookman Old Style","serif"; text-decoration: none; text-underline: none;"><strong>PRACTICAL SCENARIO 5<o:p></o:p></strong></span></span></div>
<span style="color: #741b47;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-style: normal; mso-bidi-font-style: italic;"></span></span><br />
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-style: normal; mso-bidi-font-style: italic;"><span style="color: #741b47;">Mr. Jamsuri is taking
Family Takaful Plan and the maturity period is 30 years.<span style="mso-spacerun: yes;"> </span>If now his age is 25 years old and
contributes every months about RM 16.90 in the policy. So, if anything happens,
he has guaranteed by the Takaful company of having coverage that cause of
permanently disable, accident, hospital benefits and ‘khairat’ of family.
However, he still don’t understand where is his fund has being allocated and
the different with conventional insurance.<o:p></o:p></span></span><br />
<span style="color: #741b47;">
</span><br />
<div class="MsoHeading7" style="margin: 0cm 0cm 0pt; text-indent: 0cm;">
<span lang="EN-US" style="color: magenta; font-family: "Bookman Old Style","serif"; text-decoration: none; text-underline: none;"><strong><span style="color: #741b47;">Application:<o:p></o:p></span></strong></span></div>
<span style="color: #741b47;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-style: normal; font-weight: normal;"><span style="mso-tab-count: 1;"> </span><o:p></o:p></span></span><br />
<span style="color: #741b47;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-style: normal; font-weight: normal;">In general, payment made by policyholder in conventional
insurance will be credited into the general insurance account for the general
insurance and life insurance account of fund for life insurance policy. However
it is different with Takaful policy whereas there are two accounts are taking
places; Tabbaru’ and Mudharabah. <o:p></o:p></span></span><br />
<span style="color: #741b47;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-style: normal; mso-bidi-font-style: italic;"></span></span><br />
<span style="color: #741b47;"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-style: normal; mso-bidi-font-style: italic;">The person who
contributes in the policy is called participant. The Takaful Company only acted
as operator who is manages the fund. Tabbarru’ fund is a participant special
account which treated as public fund. All funds that credited into this account
are considered as donation and can’t be claimed unless the participant falls
into a needy group. Fund in the Tabbaru will be allocated into four categories:
reserved claim, incurred but not recorder, retakaful and unearned premium.
However in Mudharabah, the fund will treat as participant’s saving. The
operator has given right by the participant to invest the mone</span><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><em>y. As a
result, both parties will allocate the </em></span><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-style: normal; mso-bidi-font-style: italic;">profit gains from the investment into the ration
that agreed. Therefore, it is called profit and loss sharing account.<o:p></o:p></span></span><br />
<span style="color: #741b47;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-style: normal; mso-bidi-font-style: italic;"></span></span><br />
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-style: normal; mso-bidi-font-style: italic;"><span style="color: #741b47;">In the Mr. Jamsuri
case, as at his age, the operator will credited his money into Tabbaru’ fund
about 8.3% and also in the Mudharabah fund. This amount is credited purposely
for death and permanently disable.</span></span><br />
<span style="mso-ignore: vglayout;"><span style="color: #741b47;"></span><br />
<span style="color: #741b47;"></span><br />
<span style="color: #741b47;"></span><br />
<span style="color: #741b47;">
</span><span style="color: #741b47;">
</span><span style="color: #741b47;">
</span><span style="color: #741b47;">
</span><span style="color: #741b47;">
</span><span style="color: #741b47;">
</span><span style="color: #741b47;">
</span><span style="color: #741b47;">
</span></span><br />
<span style="mso-ignore: vglayout;"></span><br />
<span style="mso-ignore: vglayout;"></span><br />
<span style="mso-ignore: vglayout;"></span><br />
<span style="mso-ignore: vglayout;"><table align="left" cellpadding="0" cellspacing="0"><tbody>
<tr><td height="16" style="background-color: transparent; border: rgb(0, 0, 0);" width="275"></td></tr>
<tr><td style="background-color: transparent; border: rgb(0, 0, 0);"></td><td bgcolor="white" height="55" style="background: white; border: 0.75pt solid black; vertical-align: top;" width="96"><!--[endif]--><!--[if !mso]--><span style="left: 0pt; mso-ignore: vglayout; position: absolute; z-index: 251669504;"><span style="color: #741b47;">
</span><span style="color: #741b47;">
</span><span style="color: #741b47;">
</span><span style="color: #741b47;">
</span><span style="color: #741b47;">
</span></span><br />
<span style="left: 0pt; mso-ignore: vglayout; position: absolute; z-index: 251669504;"></span><br />
<span style="left: 0pt; mso-ignore: vglayout; position: absolute; z-index: 251669504;"></span><br />
<span style="left: 0pt; mso-ignore: vglayout; position: absolute; z-index: 251669504;"></span><br />
<span style="left: 0pt; mso-ignore: vglayout; position: absolute; z-index: 251669504;"><table cellpadding="0" cellspacing="0"><tbody>
<tr><td style="background-color: transparent; border: rgb(0, 0, 0);"><!--[endif]--><span style="color: #741b47;">
</span><br />
<div class="shape" style="padding: 4.35pt 7.95pt;" v:shape="_x0000_s1032">
<span style="color: #741b47;">
</span><br />
<div class="MsoBodyText3" style="margin: 0cm 0cm 0pt;">
<strong><span style="color: #741b47;">RM 16.90</span></strong></div>
<span style="color: #741b47;">
</span></div>
<span style="color: #741b47;">
<!--[if !mso]--></span></td></tr>
</tbody></table>
<span style="color: #741b47;">
</span></span><!--[endif]--><!--[if !mso & !vml]--><span style="color: #741b47;"> <!--[endif]--><!--[if !vml]--></span><br /></td></tr>
</tbody></table>
<div class="MsoBodyTextIndent" style="margin: 0cm 0cm 0pt 36pt;">
<em><span style="color: #741b47;">
</span></em></div>
</span><br />
<div class="MsoBodyTextIndent" style="margin: 0cm 0cm 0pt 36pt;">
<!--[endif]--><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><o:p><em><span style="color: #741b47;"> </span></em></o:p></span></div>
<span style="color: #741b47;">
<br clear="ALL" style="mso-ignore: vglayout;" />
</span><br />
<div class="MsoBodyTextIndent" style="margin: 0cm 0cm 0pt 36pt;">
<!--[if gte vml 1]><v:line id="_x0000_s1033"
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from="126pt,12.05pt" to="207pt,24.3pt" o:allowincell="f">
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to="346.5pt,24.3pt" o:allowincell="f">
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style='position:absolute;left:0;text-align:left;margin-left:297pt;
margin-top:26.4pt;width:148.5pt;height:63pt;z-index:251668480' o:allowincell="f">
<v:textbox>
<![if !mso]>
<table cellpadding=0 cellspacing=0 width="100%">
<tr>
<td><![endif]>
<div>
<p class=MsoNormal align=center style='text-align:center'>
<span lang=EN-US
style='font-size:9.0pt;mso-bidi-font-size:12.0pt;font-family:"Arial","sans-serif";
mso-bidi-font-family:"Times New Roman"'>TABBARRU’ FUND<o:p></o:p></span></p>
<p class=MsoNormal align=center style='text-align:center'>
<span lang=EN-US
style='font-size:9.0pt;mso-bidi-font-size:12.0pt;font-family:"Arial","sans-serif";
mso-bidi-font-family:"Times New Roman"'>(PARTICIPANT SPECIAL ACCOUNT)<o:p></o:p></span></p>
</div>
<![if !mso]></td>
</tr>
</table>
<![endif]></v:textbox>
</v:oval><![endif]--><!--[if !vml]--><span style="height: 90px; left: 0px; margin: 35px auto auto 395px; mso-ignore: vglayout; position: absolute; width: 204px; z-index: 251668480;"><span style="color: #741b47;"><img alt="Oval: TABBARRU’ FUND
(PARTICIPANT SPECIAL ACCOUNT)
" height="90" src="file:///C:/Users/User/AppData/Local/Temp/msohtmlclip1/01/clip_image006.gif" v:shapes="_x0000_s1031" width="204" /></span></span><!--[endif]--><!--[if gte vml 1]><v:oval id="_x0000_s1030"
style='position:absolute;left:0;text-align:left;margin-left:18pt;margin-top:26.4pt;
width:175.5pt;height:63pt;z-index:251667456' o:allowincell="f">
<v:textbox>
<![if !mso]>
<table cellpadding=0 cellspacing=0 width="100%">
<tr>
<td><![endif]>
<div>
<p class=MsoNormal align=center style='text-align:center'>
<span lang=EN-US
style='font-size:9.0pt;mso-bidi-font-size:12.0pt;font-family:"Arial","sans-serif";
mso-bidi-font-family:"Times New Roman"'>MUDHARABAH<o:p></o:p></span></p>
<p class=MsoNormal align=center style='text-align:center'>
<span lang=EN-US
style='font-size:9.0pt;mso-bidi-font-size:12.0pt;font-family:"Arial","sans-serif";
mso-bidi-font-family:"Times New Roman"'>FUND<o:p></o:p></span></p>
<p class=MsoBodyText2>
<span style='font-size:9.0pt;mso-bidi-font-size:12.0pt;
font-family:"Arial","sans-serif";mso-bidi-font-family:"Times New Roman"'>(PARTICIPANT<span
style='mso-spacerun:yes'> </span>ACCOUNT)<o:p></o:p></span></p>
</div>
<![if !mso]></td>
</tr>
</table>
<![endif]></v:textbox>
</v:oval><![endif]--><!--[if !vml]--><span style="height: 90px; left: 0px; margin: 35px auto auto 23px; mso-ignore: vglayout; position: absolute; width: 240px; z-index: 251667456;"><span style="color: #741b47;"><img alt="Oval: MUDHARABAH
FUND
(PARTICIPANT ACCOUNT)
" height="90" src="file:///C:/Users/User/AppData/Local/Temp/msohtmlclip1/01/clip_image007.gif" v:shapes="_x0000_s1030" width="240" /></span></span><!--[endif]--><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><em><span style="color: #741b47;"><span style="mso-tab-count: 3;"> </span><span style="mso-spacerun: yes;"> </span>91.7%<span style="mso-spacerun: yes;"> </span>8.3%<o:p></o:p></span></em></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoBodyTextIndent" style="margin: 0cm 0cm 0pt 36pt;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><o:p><em><span style="color: #741b47;"> </span></em></o:p></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoBodyTextIndent" style="margin: 0cm 0cm 0pt 36pt;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><o:p><em><span style="color: #741b47;"> </span></em></o:p></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify; text-indent: 36pt;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><o:p><span style="color: #741b47;"> </span></o:p></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify; text-indent: 36pt;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><span style="color: #741b47;"><span style="mso-tab-count: 1;"> </span>RM 15.49<span style="mso-spacerun: yes;">
</span>RM 1.40<o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span style="color: #741b47;"><!--[if gte vml 1]><v:line id="_x0000_s1035"
style='position:absolute;left:0;text-align:left;z-index:251672576' from="90pt,1.15pt"
to="90pt,25.65pt" o:allowincell="f">
<v:stroke dashstyle="1 1" endarrow="block"/>
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z-index:251674624' o:allowincell="f">
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<![if !mso]>
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<tr>
<td><![endif]>
<div>
<p class=MsoNormal style='text-align:justify'>
<span lang=EN-US
style='font-size:10.0pt;mso-bidi-font-size:12.0pt;font-family:"Arial","sans-serif";
mso-bidi-font-family:"Times New Roman"'>This amount will be treated based
on profit and loss sharing account. Let say, the ration will be 60:40. </span><span
lang=EN-US style='font-size:10.0pt;mso-bidi-font-size:12.0pt'><o:p></o:p></span></p>
</div>
<![if !mso]></td>
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text-align:left;z-index:251673600' from="378pt,1.15pt" to="378pt,25.65pt"
o:allowincell="f">
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text-align:left;margin-left:261pt;margin-top:26.75pt;width:184.5pt;height:61.25pt;
z-index:251675648'>
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<![if !mso]>
<table cellpadding=0 cellspacing=0 width="100%">
<tr>
<td><![endif]>
<div>
<p class=MsoNormal style='margin-left:288.0pt;text-indent:-288.0pt'>
<span
lang=EN-US style='font-size:10.0pt;mso-bidi-font-size:12.0pt;font-family:
"Arial","sans-serif";mso-bidi-font-family:"Times New Roman"'>In this fund,
the money will fall into<o:p></o:p></span></p>
<p class=MsoNormal style='margin-left:288.0pt;text-indent:-288.0pt'>
<span
lang=EN-US style='font-size:10.0pt;mso-bidi-font-size:12.0pt;font-family:
"Arial","sans-serif";mso-bidi-font-family:"Times New Roman"'><span
style='mso-spacerun:yes'> </span>four categories, which are: <o:p></o:p></span></p>
<p class=MsoNormal>
<span lang=EN-US style='font-size:10.0pt;mso-bidi-font-size:
12.0pt;font-family:"Arial","sans-serif";mso-bidi-font-family:"Times New Roman"'><span
style='mso-spacerun:yes'> </span>Retakaful, IBNR, claimed reserve and
unearned premium.</span><span lang=EN-US style='font-size:10.0pt;
mso-bidi-font-size:12.0pt'><o:p></o:p></span></p>
</div>
<![if !mso]></td>
</tr>
</table>
<![endif]></v:textbox>
</v:rect><![endif]--><!--[if !vml]--></span><br /></div>
<span style="mso-ignore: vglayout;"></span><br />
<span style="mso-ignore: vglayout;"></span><br />
<span style="mso-ignore: vglayout;"></span><br />
<span style="mso-ignore: vglayout;"></span><br />
<span style="mso-ignore: vglayout;"><div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span style="color: #741b47;">
</span></div>
<span style="color: #741b47;">
</span><span style="color: #741b47;">
</span><span style="color: #741b47;">
</span><span style="color: #741b47;">
</span><span style="color: #741b47;">
</span><span style="color: #741b47;">
</span><span style="color: #741b47;">
</span><span style="color: #741b47;">
</span><span style="color: #741b47;">
</span><span style="color: #741b47;">
</span><span style="color: #741b47;">
</span><span style="color: #741b47;">
</span><span style="color: #741b47;">
</span><table align="left" cellpadding="0" cellspacing="0"><tbody>
<tr><td height="1" style="background-color: transparent; border: rgb(0, 0, 0);" width="23"></td><td style="background-color: transparent; border: rgb(0, 0, 0);" width="228"></td><td style="background-color: transparent; border: rgb(0, 0, 0);" width="96"></td><td style="background-color: transparent; border: rgb(0, 0, 0);" width="252"></td></tr>
<tr><td height="120" style="background-color: transparent; border: rgb(0, 0, 0);"></td><td align="left" style="background-color: transparent; border: rgb(0, 0, 0);" valign="top"><span style="color: #741b47;"><img height="120" src="file:///C:/Users/User/AppData/Local/Temp/msohtmlclip1/01/clip_image008.gif" v:shapes="_x0000_s1035 _x0000_s1037" width="228" /></span></td><td style="background-color: transparent; border: rgb(0, 0, 0);"></td><td align="left" style="background-color: transparent; border: rgb(0, 0, 0);" valign="top"><span style="color: #741b47;"><img height="120" src="file:///C:/Users/User/AppData/Local/Temp/msohtmlclip1/01/clip_image009.gif" v:shapes="_x0000_s1036 _x0000_s1038" width="252" /></span></td></tr>
</tbody></table>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span style="color: #741b47;">
</span></div>
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<!--[endif]--><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><o:p><span style="color: #741b47;"> </span></o:p></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><o:p><span style="color: #741b47;"> </span></o:p></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><o:p><span style="color: #741b47;"> </span></o:p></span></div>
<span style="color: #741b47;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><span style="mso-spacerun: yes;"></span></span></span><br />
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><span style="color: #741b47;"><span style="mso-spacerun: yes;"> </span>If there is a profit incurred in the
Mudharabah fund, which is about RM 1. Therefore, according to the portion of
60:40, the company will enjoy 60% of the profit that will become an earning for
the Takaful Company. The participant has right on the whole amount in the
Mudharabah fund whereas they can take back their money and not necessary to pay
back. However, it is so different in conventional insurance, the policyholder
did not has any right to get the money unless they borrow from the insurance
company. The money must to pay back with interest charge on it. This is
unlawful in Islamic principles. It is also differs in term of<span style="mso-spacerun: yes;"> </span>accounting whereas in Takaful used cash
accounting and conventional insurance used several methods such as cash
accrual, deferred and embedded values<i style="mso-bidi-font-style: normal;">.<o:p></o:p></i></span></span><br />
<span style="color: #741b47;">
<span lang="EN-US" style="color: magenta; font-family: "Bookman Old Style","serif"; text-decoration: none; text-underline: none;"><strong><u></u></strong></span></span><br />
<span lang="EN-US" style="color: magenta; font-family: "Bookman Old Style","serif"; text-decoration: none; text-underline: none;"><strong><span style="color: #741b47;">RECOMMENDATION<o:p></o:p></span></strong></span><br />
<span style="color: #741b47;">
</span><br />
<div class="MsoBodyTextIndent" style="line-height: normal; margin: 0cm 0cm 0pt;">
<span style="color: #741b47;"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-style: normal; mso-bidi-font-family: "Bookman Old Style"; mso-bidi-font-style: italic; mso-fareast-font-family: "Bookman Old Style";"><span style="mso-list: Ignore;">1.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><!--[endif]--><span dir="LTR"></span><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-style: normal; mso-bidi-font-style: italic;">The operator should
brief the participant regarding the allocation of the fund and explain how it
is lawful according to the Islamic principles. <o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoBodyTextIndent" style="line-height: normal; margin: 0cm 0cm 0pt 18pt; mso-list: l4 level1 lfo14; tab-stops: list 18.0pt; text-indent: -18pt;">
<!--[if !supportLists]--><span style="color: #741b47;"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-style: normal; mso-bidi-font-family: "Bookman Old Style"; mso-bidi-font-style: italic; mso-fareast-font-family: "Bookman Old Style";"><span style="mso-list: Ignore;">2.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><!--[endif]--><span dir="LTR"></span><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-style: normal; mso-bidi-font-style: italic;">If there is
misunderstanding occurs, it may affect the trust and reflect with bad
reputation. To avoid all these, it is important to the operator to tell where
their money flow in the Takaful. It is because in conventional, the money is
clearly credited into one account and the contract is base on buy and sell
contract.<o:p></o:p></span></span></div>
<span style="color: #741b47;">
<span lang="EN-US" style="color: magenta; font-family: "Bookman Old Style","serif"; text-decoration: none; text-underline: none;"><strong><u></u></strong></span></span><br />
<span lang="EN-US" style="color: magenta; font-family: "Bookman Old Style","serif"; text-decoration: none; text-underline: none;"><strong><span style="color: #741b47;">CONCLUSION<o:p></o:p></span></strong></span><br />
<span style="color: #741b47;">
</span><br />
<div class="MsoBodyText" style="margin: 0cm 0cm 0pt;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-style: normal; font-weight: normal;"><span style="color: #741b47;">The role of actuary in Takaful
is to approve the costing proposal that prepared by the actuary department in
Takaful Company. The actuary department is responsible in calculating cost for
new product by referring to mobility rates, mortality rates, projector
investment return, information from marketing research as well as needs of the
society, providing a value product to the company, submitting the proposal of
costing for the management approval and finally submitting to the actuary and
Bank Negara Malaysia for final approval.<o:p></o:p></span></span></div>
<span style="color: #741b47;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-style: normal; font-weight: normal;"></span></span><br />
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-style: normal; font-weight: normal;"><span style="color: #741b47;">In others way, factors that
influence the actuary department in preparing department are rates of death in
certain time, mortality rate and mobility rate, information from the existing
products that quite similar (comparison), retakaful rate and expectation of
Profit. <o:p></o:p></span></span><br />
<span style="color: #741b47;">
</span><br />
<div class="MsoBodyText" style="margin: 0cm 0cm 0pt;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-style: normal; font-weight: normal;"><span style="color: #741b47;">The process of pricing is
starting with the conducting research on the need of the society by the
marketing department. Then, the actuary will make a comparison with the
information from the marketing department with the expecting profit that will
gains from the policy in able to prepare a proposal of costing. The purpose of
the costing is used in determine the right pricing rate for the new products.
The proposal will be submitted to the management department and then to the
actuary in the consultant company for the approval. After getting the approval,
Bank Negara <st1:country-region w:st="on"><st1:place w:st="on">Malaysia</st1:place></st1:country-region>
will filing the documents and approving the proposal. The IT department will
creates s system for the new product before it is launches in the market. <o:p></o:p></span></span></div>
<span style="color: #741b47;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif";"><span style="color: #741b47;">Pricing procedures
in Takaful based on the concept of mutual cooperation between each other, which
has been stated in the Quranic ayah. Pricing procedure include in term of
claim, calculation basis, bonus and payment. There are two types of pricing
technique, which are based on theory of compound interest and time consideration
in transaction. All of the pricing components in Takaful should be free from
elements of riba’ and gharar. Therefore, as a Muslim we should wisely select
the relevant scheme which give us dual beneficial in the world and hereafter.<o:p></o:p></span></span></div>
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<a href="file:///C:/Users/User/Desktop/MY%20DOCUMENTS/My%20DOCUMENTS%20(February%2001,%202013)/My%20IP/IP%20of%20Masum/Intellectual%20Properties%20(IP)/e-LEARNING%20Project/e-Learning%20(Materials)/Actuarial%20Science%20[30]/Pricings.doc#_ftnref1" name="_ftn1" style="mso-footnote-id: ftn1;" title=""><span class="MsoFootnoteReference"><span lang="EN-US"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-size: 12.0pt; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: #741b47;">[1]</span></span></span><!--[endif]--></span></span></span></a><span lang="EN-US"><span style="color: #741b47; font-size: x-small;"> Holy Quran, Al-Baqarah:278</span></span></div>
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<a href="file:///C:/Users/User/Desktop/MY%20DOCUMENTS/My%20DOCUMENTS%20(February%2001,%202013)/My%20IP/IP%20of%20Masum/Intellectual%20Properties%20(IP)/e-LEARNING%20Project/e-Learning%20(Materials)/Actuarial%20Science%20[30]/Pricings.doc#_ftnref2" name="_ftn2" style="mso-footnote-id: ftn2;" title=""><span class="MsoFootnoteReference"><span lang="EN-US"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-size: 12.0pt; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: #741b47;">[2]</span></span></span><!--[endif]--></span></span></span></a><span lang="EN-US"><span style="color: #741b47; font-size: x-small;"> Holy Quran Al-Maidah:3</span></span></div>
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<a href="file:///C:/Users/User/Desktop/MY%20DOCUMENTS/My%20DOCUMENTS%20(February%2001,%202013)/My%20IP/IP%20of%20Masum/Intellectual%20Properties%20(IP)/e-LEARNING%20Project/e-Learning%20(Materials)/Actuarial%20Science%20[30]/Pricings.doc#_ftnref3" name="_ftn3" style="mso-footnote-id: ftn3;" title=""><span class="MsoFootnoteReference"><span lang="EN-US"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-size: 12.0pt; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: #741b47;">[3]</span></span></span><!--[endif]--></span></span></span></a><span lang="EN-US"><span style="color: #741b47; font-size: x-small;"> Holy Quran, Al-Maidah:3</span></span></div>
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<a href="file:///C:/Users/User/Desktop/MY%20DOCUMENTS/My%20DOCUMENTS%20(February%2001,%202013)/My%20IP/IP%20of%20Masum/Intellectual%20Properties%20(IP)/e-LEARNING%20Project/e-Learning%20(Materials)/Actuarial%20Science%20[30]/Pricings.doc#_ftnref5" name="_ftn5" style="mso-footnote-id: ftn5;" title=""><span class="MsoFootnoteReference"><span lang="EN-US"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-size: 12.0pt; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: #741b47;">[5]</span></span></span><!--[endif]--></span></span></span></a><span lang="EN-US"><span style="color: #741b47; font-size: x-small;"> ibid 3:77</span></span></div>
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<a href="file:///C:/Users/User/Desktop/MY%20DOCUMENTS/My%20DOCUMENTS%20(February%2001,%202013)/My%20IP/IP%20of%20Masum/Intellectual%20Properties%20(IP)/e-LEARNING%20Project/e-Learning%20(Materials)/Actuarial%20Science%20[30]/Pricings.doc#_ftnref6" name="_ftn6" style="mso-footnote-id: ftn6;" title=""><span class="MsoFootnoteReference"><span lang="EN-US"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-size: 12.0pt; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: #741b47;">[6]</span></span></span><!--[endif]--></span></span></span></a><span lang="EN-US"><span style="color: #741b47; font-size: x-small;"> Holy Quran</span></span></div>
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<a href="file:///C:/Users/User/Desktop/MY%20DOCUMENTS/My%20DOCUMENTS%20(February%2001,%202013)/My%20IP/IP%20of%20Masum/Intellectual%20Properties%20(IP)/e-LEARNING%20Project/e-Learning%20(Materials)/Actuarial%20Science%20[30]/Pricings.doc#_ftnref7" name="_ftn7" style="mso-footnote-id: ftn7;" title=""><span class="MsoFootnoteReference"><span lang="EN-US"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-size: 12.0pt; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><span style="color: #741b47;">[7]</span></span></span><!--[endif]--></span></span></span></a><span lang="EN-US"><span style="color: #741b47; font-size: x-small;"> Holy Quran Al-Baqarah:276</span></span></div>
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Mohd. Ma'sum Billahhttp://www.blogger.com/profile/14029507777590329011noreply@blogger.com0tag:blogger.com,1999:blog-7101557101807536516.post-62380019323618110062013-08-05T17:39:00.002-07:002013-08-05T17:50:55.250-07:00International Islamic Financial and Halal Corporate Knowledge Hub ?<br />
<b><span style="color: #0070c0; font-family: "Verdana","sans-serif"; font-size: 14pt; line-height: 115%;">Preview<span style="mso-spacerun: yes;">
</span></span></b><b><span style="color: #c0504d; font-family: "Verdana","sans-serif"; font-size: 14pt; line-height: 115%; mso-themecolor: accent2;"><o:p></o:p></span></b><br />
<span style="color: #002060; font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;"></span></span><br />
<span style="color: #002060; font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">The annual growth rate of the modern Islamic
financial products and services across the world as at 2013 is 20.4%
(indicative), but undesirably noted here that, the adequate <i>Shari’ah</i>
justified knowledge, research, solutions and development to support the above
growth<span style="mso-spacerun: yes;"> </span>are yet far behind. As a result,
the Islamic financial and <i>Halal</i> industries globally are facing the
shortage and short-coming of <i>Shari’ah</i> equipped required professionals,
research and solutions so to facilitate the operations with excellent results. </span></span><br />
<span style="color: #002060; font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;"><o:p></o:p></span></span><br />
<span style="color: #002060; font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">Thus, it is an urgent step to focus on the knowledge
culture specializing in applied Islamic finance & <i>Halal</i> business
towards creating dynamic professionals, researchers and solution providers in
facilitating the industries accurately by know-how and what within the right
spirit of <i>Shari’ah </i>principles, standard system, policies and acceptable
mechanisms.<o:p></o:p></span></span><br />
<br />
<span style="color: #002060; font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">The contemporary world recognizes Malaysia as
among the leading providers of Islamic financial & <i>Halal</i> business
products and services besides its education and professional offerings. To keep
up such image with sustainability Malaysia has the potential to lead the
applied Islamic financial & <i>Halal</i> corporate human capital
development, research and<span style="mso-spacerun: yes;"> </span>industrial
solutions.<o:p></o:p></span></span><br />
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt; text-align: justify;">
<span style="color: #002060; font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">The above mission may truly be achieved though
the establishment of <b>“International Islamic Financial & Halal Corporate
Knowledge Hub Malaysia”</b>, so to centralize the applied Islamic financial
& <i>Halal</i> corporate education & research development in view of
preparing internationally acceptable academics, professionals, researchers
& solution providers thus, may effectively meet the global industrial &
academic expectation in reality. <o:p></o:p></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt; text-align: justify;">
<b><span style="color: #0070c0; font-family: "Verdana","sans-serif"; font-size: 14pt; line-height: 115%;">Prime Objectives<span style="mso-spacerun: yes;">
</span></span></b><b><span style="color: #c0504d; font-family: "Verdana","sans-serif"; mso-themecolor: accent2;"><o:p></o:p></span></b></div>
<span style="color: #002060; font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">1.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><!--[endif]--><span dir="LTR"></span><span style="color: #002060; font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">Creating <b>Malaysia, the “International
Islamic Financial & <i>Halal </i>Corporate Knowledge Hub”</b> by leading
applied Islamic Financial and <i>Halal </i>Corporate Education & Research in
preparing right Professionals to meet the contemporary global industrial demands.</span></span><br />
<div class="MsoListParagraphCxSpFirst" style="margin: 0cm 0cm 0pt 36pt; mso-list: l19 level1 lfo32; text-align: justify; text-indent: -18pt;">
<span style="color: #002060; font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;"><o:p></o:p></span></span> </div>
<span style="color: #002060; font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">2.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><!--[endif]--><span dir="LTR"></span><span style="color: #002060; font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">To open up a standardized (<b>Centralized</b>)
opportunity for every Higher Learning Institutions of Malaysia with applied
Islamic Financial & <i>Halal </i>Corporate <b>Education & Research </b>by
establishment and duly implementation through:<o:p></o:p></span></span><br />
<span style="color: #002060; font-size: 10pt; line-height: 115%;"><o:p><span style="font-family: Calibri;"> </span></o:p></span><br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0cm 0cm 0pt 72pt; mso-add-space: auto; mso-list: l32 level1 lfo34; text-align: justify; text-indent: -36pt;">
<!--[if !supportLists]--><span style="color: #002060; font-size: 10pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">(i)</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><!--[endif]--><span dir="LTR"></span><span style="color: #002060; font-size: 10pt; line-height: 115%;"><span style="font-family: Calibri;">A globally (ISO) standard applied
Islamic Financial and <i>Halal</i> Corporate <b>Education</b> Centre (by
adapting CPBL model) in view of contributing towards a sustainable Human
capital (professional) development scheme across the world.<o:p></o:p></span></span></div>
<br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0cm 0cm 0pt 72pt; mso-add-space: auto; mso-list: l32 level1 lfo34; text-align: justify; text-indent: -36pt;">
<!--[if !supportLists]--><span style="color: #002060; font-size: 10pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">(ii)</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><!--[endif]--><span dir="LTR"></span><span style="color: #002060; font-size: 10pt; line-height: 115%;"><span style="font-family: Calibri;">Enrichment of applied <b>Research </b>culture
(by adapting CPBR model) so to contribute with adequate references for the
industries, professionals, academia, regulators, government, NGO and those of
interested and involved ones in the Islamic finance & <i>Halal </i>business
in the contemporary practicality. <b><o:p></o:p></b></span></span></div>
<br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0cm 0cm 0pt 72pt; mso-add-space: auto; mso-list: l32 level1 lfo34; text-align: justify; text-indent: -36pt;">
<!--[if !supportLists]--><span style="color: #002060; font-size: 10pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">(iii)</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><!--[endif]--><span dir="LTR"></span><span style="color: #002060; font-size: 10pt; line-height: 115%;"><span style="font-family: Calibri;">Providing appropriate <b>Solutions</b> (by
adapting CPBS model) through professional consultancy, advisory and solution
providing to corporate as well as intellectual problems faced by the academia,
professionals, practitioners, regulators, government, NGO and the industries of
Islamic financial<span style="mso-spacerun: yes;"> </span>& <i>Halal </i>Business
environment globally.<b><o:p></o:p></b></span></span></div>
<br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0cm 0cm 0pt 72pt; mso-add-space: auto; mso-list: l32 level1 lfo34; text-align: justify; text-indent: -36pt;">
<!--[if !supportLists]--><span style="color: #002060; font-size: 10pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">(iv)</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><!--[endif]--><span dir="LTR"></span><span style="color: #002060; font-size: 10pt; line-height: 115%;"><span style="font-family: Calibri;">Exploring and sharing accurate knowledge
and information through effective <b>Events</b> (conference, seminar, summit,
convention, colloquium, workshop, symposium and professional & industrial
training) on day to day issues involving Islamic finance Halal business. <b><o:p></o:p></b></span></span></div>
<br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0cm 0cm 0pt 72pt; mso-add-space: auto; mso-list: l32 level1 lfo34; text-align: justify; text-indent: -36pt;">
<!--[if !supportLists]--><span style="color: #002060; font-size: 10pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">(v)</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><!--[endif]--><span dir="LTR"></span><span style="color: #002060; font-size: 10pt; line-height: 115%;"><span style="font-family: Calibri;">Developing standard <b>System</b>,
policies, guidelines, structure, model, reformation structure, transformation
paradigm and soft-ware solution (by adapting CPBS) on Islamic Financial & <i>Halal</i>
business products and services for the governments NGO, regulators, industries,
professionals and operators in different parts of the contemporary world.</span></span></div>
<div class="MsoListParagraphCxSpMiddle" style="margin: 0cm 0cm 0pt 72pt; mso-add-space: auto; mso-list: l32 level1 lfo34; text-align: justify; text-indent: -36pt;">
<span style="color: #002060; font-size: 10pt; line-height: 115%;"><span style="font-family: Calibri;"><b><o:p></o:p></b></span></span> </div>
<span style="color: #002060; font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">3.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><!--[endif]--><span dir="LTR"></span><span style="color: #002060; font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">To contribute towards <b>producing able
Professionals</b> to meet the local, regional and global demands in the Islamic
financial & <i>Halal</i> corporate industries as to human resources,
qualified professionals, practitioners and subject experts are concerned.<o:p></o:p></span></span><br />
<br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0cm 0cm 0pt 36pt; text-align: justify;">
<span style="color: #002060; font-size: 8pt; line-height: 115%;"><o:p><span style="font-family: Calibri;"> </span></o:p></span><span style="color: #002060; font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">4.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><!--[endif]--><span dir="LTR"></span><span style="color: #002060; font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">To attract the global Islamic financial
& <i>Halal</i> business industries to <b>appreciate Malaysia as the leader</b>
in Islamic financial & <i>Halal</i> corporate Education & Research with
standard mechanisms.<o:p></o:p></span></span></div>
<br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0cm 0cm 0pt 36pt;">
<span style="color: #002060; font-size: 8pt; line-height: 115%;"><o:p><span style="font-family: Calibri;"> </span></o:p></span><span style="color: #002060; font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">5.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><!--[endif]--><span dir="LTR"></span><span style="font-family: Calibri;"><span style="color: #002060; font-size: 12pt; line-height: 115%;">To
<b>attract the investors</b> to invest in Malaysia for the standard Education,
Research & Solutions in the applied Islamic finance & <i>Halal</i>
business.</span><b><span style="color: #002060; font-size: 14pt; line-height: 115%;"><o:p></o:p></span></b></span></div>
<b><span style="color: #0070c0; font-family: "Verdana","sans-serif"; font-size: 13pt; line-height: 115%;"></span></b><br />
<b><span style="color: #0070c0; font-family: "Verdana","sans-serif"; font-size: 13pt; line-height: 115%;">What Niche
for Malaysia with the Scheme (K-Hub) whilst the Operation in Nature Exists at
Home & Abroad as well?</span></b><br />
<span style="font-family: Calibri;"><b><span style="color: #002060; font-size: 12pt; line-height: 115%;"> <span style="mso-spacerun: yes;"> </span></span></b></span><span style="color: #002060; font-size: 12pt; line-height: 115%;"><o:p><span style="font-family: Calibri;"> </span></o:p></span><br />
<span style="color: #002060; font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">It is an undeniable fact that, some selected
Islamic banking, finance & commerce related knowledge based programs and
activities are offered and or undertaken by individuals, institutions and
organizations in different parts of the world including in Malaysia, which may
be estimated at about 30% of the total demands of the global industries.</span></span><br />
<span style="color: #002060; font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;"><o:p></o:p></span></span><br />
<span style="color: #002060; font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">Despite such a phenomena, the existing
offerings & activities with knowledge and information in the specialized
sectors of Islamic finance and business have not sufficiently been claiming to
meet the global industrial demands as to required qualified professionals to
support the industrial growth through the right <i>Shari’ah</i> trained corporate-professionals.<o:p></o:p></span></span><br />
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt; text-align: justify;">
<span style="font-family: Calibri;"><span style="color: #002060; font-size: 12pt; line-height: 115%;">Malaysia has been known with appreciation by
the world of Islamic corporate knowledge to have been playing a potential role
with utmost concern in preparing the professionals with knowledge and due
experiences to support the Islamic financial and corporate industries across
the world. Despite such continuing effort, its realisation is only at an
average level as compared to what the annual industrial growth at 20.4% and its
parallel professional demands in supporting the industries globally. Furthermore,
the programs and the activities offered and undertaken by the local
institutions have not also been comprehensive enough in covering all practical
subjects, components or sectors with detail <i>Shari’ah</i> justified solutions
so to meet the corporate demands in managing the industries with right
directions as required by the <i>Shari’ah</i> standard.</span><b><span style="color: #002060; font-size: 14pt; line-height: 115%;"><o:p></o:p></span></b></span></div>
<span style="font-family: Calibri;"><span style="font-size: 12pt; line-height: 115%;">Therefore, it is timely for the <b>government of Malaysia</b>
in its talented capacity to take an effective immediate opportunity to lead the
Islamic corporate-human capital & professional development scheme with
applied knowledge, research & talents in view of producing talented
professionals and industrial solutions for the Islamic financial and corporate
industries as per today’s global demands, through the establishment of a first <span style="color: black; mso-themecolor: text1;">ever</span><span style="color: #4bacc6; mso-themecolor: accent5;"><span style="mso-spacerun: yes;"> </span><b>“International
Islamic Financial & <i>Halal</i> Corporate Knowledge Hub, Malaysia”</b></span><b><span style="color: #0070c0;"> </span></b><span style="color: #002060;">and its
micro-operation by the Malaysian Universities and Higher Learning institutions by
establishing the</span><b><span style="color: #0070c0;"> </span><span style="color: #00b050;">“International Centre for Excellent in Applied Islamic
Finance & <i>Halal </i>Business”.</span></b></span><b><span style="color: #00b050; font-size: 14pt; line-height: 115%;"><o:p></o:p></span></b></span><br />
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt; text-align: justify;">
<span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">Such noble initiative may rank <b><span style="color: #4f81bd; mso-themecolor: accent1;">Malaysia, the pioneer & the leader in producing
right Professionals, Research, Talents & Solutions in meeting the demands
of the Islamic financial & <i>Halal </i>corporate industries across the
contemporary world with quality of high- achievership,</span></b> <i>EnSha
Allah (swt). <o:p></o:p></i></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<b><span style="color: #0070c0; font-family: "Verdana","sans-serif"; font-size: 14pt; line-height: 115%;">Centralizing the Scheme (K-Hub)</span></b><b><span style="color: #943634; font-family: "Verdana","sans-serif"; mso-themecolor: accent2; mso-themeshade: 191;"><span style="mso-spacerun: yes;">
</span></span></b></div>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="color: #002060; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><!--[endif]--><span dir="LTR"></span><span style="color: #002060;"><span style="font-family: Calibri;">An
opportunity with encouragement in standardised <b>applied Islamic financial
& <i>Halal </i>corporate Education, Research & Solutions</b> <b>providing</b>
will be opened to all Universities & Higher learning institutions of
Malaysia by the establishment of the <b>“International Centre for Excellent in
Applied Islamic Financial & <i>Halal</i> Business <span style="mso-spacerun: yes;"> </span>Malaysia” </b>respectively under the flagship
of “<b>International Islamic Financial & <i>Halal</i> Corporate Knowledge
Hub</b>”, by centralizing at the Ministry of Education (MoE).</span></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<b><span style="color: #0070c0; font-family: "Verdana","sans-serif"; font-size: 14pt; line-height: 115%;">Standardization (System & Policies)</span></b><b><span style="color: #0070c0; font-family: "Arial Black","sans-serif"; font-size: 14pt; line-height: 115%;"> <span style="mso-spacerun: yes;"> </span></span></b></div>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="color: #632423; font-size: 13pt; line-height: 115%; mso-themecolor: accent2; mso-themeshade: 128;"><span style="font-family: Calibri;">All Standards & Policies shall be Compliant with MQA / ISO and other International Standards by adapting corporate problem based learning (CPBL), corporate problem based research (</span><span style="font-family: Calibri;">CPBR)</span><!--[endif]--><span style="font-family: Calibri;"> and cased solution (CPBS)</span><!--[endif]--><span style="font-family: Calibri;"> models.</span></span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<b><span style="color: #0070c0; font-family: "Verdana","sans-serif"; font-size: 14pt; line-height: 115%; mso-fareast-language: EN-GB; mso-no-proof: yes;"><span style="color: #3d85c6;">Quality Assurance (MQA / ISO)</span><span style="mso-spacerun: yes;"> </span></span></b></div>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<b><span style="color: #0070c0; font-family: "Arial Black","sans-serif"; font-size: 12pt; line-height: 115%;"><o:p> </o:p></span></b><span style="font-family: Calibri;"><span style="color: #002060; font-size: 14pt; line-height: 115%;">The total policies, planning, structure, activities, functions and culture of the <b>“International Islamic Financial& <i>Halal</i> Corporate Knowledge Hub”</b> and its Micro-operating Component with the lead operators (Universities & Higher learning institutions of Malaysia) <b>“International Centre for Excellent in Applied Islamic Finance & <i>Halal</i> Business Malaysia”</b> shall be</span><span style="color: black; font-size: 14pt; line-height: 115%; mso-themecolor: text1;"> </span><span style="color: #e36c0a; font-size: 14pt; line-height: 115%; mso-themecolor: accent6; mso-themeshade: 191;">globally acceptable standard.</span></span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<br /></div>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
</div>
Mohd. Ma'sum Billahhttp://www.blogger.com/profile/14029507777590329011noreply@blogger.com0tag:blogger.com,1999:blog-7101557101807536516.post-25910828020173113162013-07-13T02:25:00.004-07:002013-07-13T02:25:45.069-07:00Islamic Credit Card? a need of day to day life<strong><span style="color: #38761d;"></span></strong><br />
<strong><span style="color: #38761d;">Islamic Credit Card? an easy go.....</span></strong><a href="http://islamicmortgages.co.uk/index.php?id=262">http://islamicmortgages.co.uk/index.php?id=262</a>Mohd. Ma'sum Billahhttp://www.blogger.com/profile/14029507777590329011noreply@blogger.com0tag:blogger.com,1999:blog-7101557101807536516.post-21940229539506122882013-05-31T18:34:00.001-07:002013-05-31T18:34:18.202-07:00LIBOR & the Reaction of Islamic Finance? an interview<strong><span style="color: #38761d;">LIBOR & the Reaction of Islamic Finance:</span></strong><br />
<br />
<a href="http://applied-islamicfinance.com/pdf/mediaviews/CommentsonLIBORinIBF.pdf">http://applied-islamicfinance.com/pdf/mediaviews/CommentsonLIBORinIBF.pdf</a>Mohd. Ma'sum Billahhttp://www.blogger.com/profile/14029507777590329011noreply@blogger.com0tag:blogger.com,1999:blog-7101557101807536516.post-47211692543440523152013-05-31T04:10:00.003-07:002013-05-31T04:10:39.142-07:00Applied Islamic e-Commerce: Law & Practices (Book)<strong><span style="color: #38761d;">Applied Islamic e-Commerce: Law & Practices</span></strong><br />
<span style="color: #990000;">(<em>by: Mohd. Ma'sum Billah</em>)</span><br />
<span style="color: #990000;"></span><br />
<span style="color: #990000;"><a class="twitter-timeline-link" href="http://www.sweetandmaxwellasia.com.my/products/prod_spec.asp?ProdId=2004&cvalue=a25a54a125a49"><span style="color: #0099b9;">http://www.sweetandmaxwellasia.com.my/products/prod_spec.asp?ProdId=2004&cvalue=a25a54a125a49</span></a></span>Mohd. Ma'sum Billahhttp://www.blogger.com/profile/14029507777590329011noreply@blogger.com0tag:blogger.com,1999:blog-7101557101807536516.post-23894141190877708722013-05-31T04:03:00.003-07:002013-05-31T04:03:59.082-07:00Applied Islamic Law of Trade & Finance (Book) <strong><span style="color: #38761d;">Applied Islamic Law of Trade & Finance</span></strong> <br />
(<em><span style="color: #990000;">by: Mohd. Ma'sum Billah</span></em>)<br />
<br />
<a class="twitter-timeline-link" data-expanded-url="http://www.carswell.com/product-detail/applied-islamic-law-of-trade-and-finance-a-selection-of-contemporary-practical-issues-3rd-edition/" dir="ltr" href="http://t.co/sOgyuGbNzR" rel="nofollow" target="_blank" title="http://www.carswell.com/product-detail/applied-islamic-law-of-trade-and-finance-a-selection-of-contemporary-practical-issues-3rd-edition/"><span style="color: #0099b9;"><span class="invisible">http://www.</span><span class="js-display-url">carswell.com/product-detail</span><span class="invisible">/applied-islamic-law-of-trade-and-finance-a-selection-of-contemporary-practical-issues-3rd-edition/</span><span class="tco-ellipsis"><span class="invisible"> </span>…</span></span></a>Mohd. Ma'sum Billahhttp://www.blogger.com/profile/14029507777590329011noreply@blogger.com0tag:blogger.com,1999:blog-7101557101807536516.post-30714439637174763202013-05-31T03:50:00.001-07:002013-05-31T04:53:12.325-07:00Applied Islamic Finance (Book) <strong><span style="color: #38761d;">Applied Islamic Finance: Law & Practices from Global Perspective</span></strong><br />
(<em><span style="color: #990000;">By: Mohd. Ma'sum Billah</span></em>)<br />
<br />
<a class="twitter-timeline-link" href="http://www.wildy.com/isbn/9789832631989/applied-islamic-finance-law-and-practice-from-a-global-perspective"><span style="color: #0099b9;">http://www.wildy.com/isbn/9789832631989/applied-islamic-finance-law-and-practice-from-a-global-perspective</span></a>Mohd. Ma'sum Billahhttp://www.blogger.com/profile/14029507777590329011noreply@blogger.com0tag:blogger.com,1999:blog-7101557101807536516.post-11689042022070045922013-04-20T21:36:00.001-07:002013-04-20T21:36:15.767-07:00Islamic Finance-a Peace Making Mission for all Humanity?<span class="userContent" data-ft="{"tn":"K"}"></span><br />
<span class="userContent" data-ft="{"tn":"K"}"><strong><span style="color: #38761d;"> <span class="userContent" data-ft="{"tn":"K"}">ISLAMIC FINANCE?</span></span></strong></span><br />
<span class="userContent" data-ft="{"tn":"K"}"><span class="userContent" data-ft="{"tn":"K"}"><br /> <span style="color: #b45f06;">(i) offers sustainable opportunities;<br /> (ii) with risk sharing cooperative culture;<br /> (iii) within the holistic spirit of 'brotherhood';<br /> (iv) for all humanity in no issue of one's religion, race, colour, gender, nationality or status;<br /> (v) consistent with universal (natural) socio-economic & cultural value;<br /> (vi) contributes towards creating an enterprising & an entrepreneur based global community with peace, progress & prosperity.</span> </span></span><br />
<span class="userContent" data-ft="{"tn":"K"}"><span class="userContent" data-ft="{"tn":"K"}"> <strong><span style="color: #3d85c6;">-MB-</span></strong></span><br /> </span>Mohd. Ma'sum Billahhttp://www.blogger.com/profile/14029507777590329011noreply@blogger.com0tag:blogger.com,1999:blog-7101557101807536516.post-58645435885872272382013-04-19T06:55:00.001-07:002013-05-31T18:55:41.362-07:00Harmonizing Shari'ah Scholars & Lawyers in Modern Corporatization<strong><span style="color: #38761d;"></span></strong><br />
Interview of Prof. Dr. Mohd. Ma'sum Billah<br />
by: <strong><span style="color: #38761d;">BUSINESS ISLAMICA (Dubai) /</span></strong><br />
<a class="twitter-timeline-link" href="http://businessislamica.com/2012/07/12/the-relationship-between-scholars-and-lawyers-and-how-to-optimalize-shariah-boards-part-ii/"><span style="color: #0099b9;">http://businessislamica.com/2012/07/12/the-relationship-between-scholars-and-lawyers-and-how-to-optimalize-shariah-boards-part-ii/</span></a><br />
<br />
Also.......<br />
<span style="background-color: #38761d;"><strong>By ISFIN:</strong></span><br />
<br />
<a href="http://www.isfin.net/content/interview-dr-mohammed-masum-billah-shariah-scholar-relationship-between-scholars-and-lawyers">http://www.isfin.net/content/interview-dr-mohammed-masum-billah-shariah-scholar-relationship-between-scholars-and-lawyers</a>Mohd. Ma'sum Billahhttp://www.blogger.com/profile/14029507777590329011noreply@blogger.com0tag:blogger.com,1999:blog-7101557101807536516.post-4495985137880871882013-04-02T18:51:00.002-07:002013-04-02T18:51:23.144-07:00Supremacy of Islam as appreciated by other Faiths today?
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: Calibri;"><span style="color: #38761d;">The “SUPREMACY of ISLAM” as truly admitted by other FAITHS
today</span>...(<span style="color: blue;"><em>view the below link</em></span>).<span style="mso-spacerun: yes;">
</span><span style="color: #990000;">What an unfortunate for some born-Muslims who proudly claim to be atheists?</span></span></div>
<span style="font-family: Calibri;"><a href="https://www.facebook.com/photo.php?v=552332518133383&set=vb.100000699202516&type=2&theater">https://www.facebook.com/photo.php?v=552332518133383&set=vb.100000699202516&type=2&theater</a></span><br />
Mohd. Ma'sum Billahhttp://www.blogger.com/profile/14029507777590329011noreply@blogger.com0tag:blogger.com,1999:blog-7101557101807536516.post-71882987522699194622013-04-01T19:52:00.001-07:002013-04-01T19:52:17.791-07:00Interview by Global Islamic Finance Magazine <span class="userContent"><strong><span style="color: #38761d;">INTERVIEW</span></strong> of Prof. Dr. Mohd. Ma'sum Billah </span><br />
<span class="userContent">by: </span><br />
<span class="userContent"><strong><span style="color: #990000;">Global Islamic Finance Magazine</span></strong> </span><br />
<span class="userContent">(<span style="color: #0b5394;">Leading Islamic Finance Intelligence Since 2007</span>).</span><br />
<span class="userContent"></span><br />
<span class="userContent">The issue of <strong><span style="color: #38761d;">Franchising of Islamic Financial Products & Services</span></strong> with Global Approach.</span><br />
<span class="userContent"></span><br />
<span class="userContent">The detail of the interview can be browsed through the following link:</span><br />
<span class="userContent"> <a href="http://www.globalislamicfinancemagazine.com/?com=news_list&nid=2152" rel="nofollow nofollow" target="_blank"><span>http://</span><wbr></wbr><span class="word_break"></span><span>www.globalislamicfinancemagazin</span><wbr></wbr><span class="word_break"></span>e.com/?com=news_list&nid=2152</a></span>Mohd. Ma'sum Billahhttp://www.blogger.com/profile/14029507777590329011noreply@blogger.com0tag:blogger.com,1999:blog-7101557101807536516.post-13604734425730661662013-03-21T23:44:00.004-07:002013-03-21T23:49:42.421-07:00Islamic Project Finance? Corporate Issues & Solutions <pre style="mso-line-height-alt: 14.4pt; text-align: center;"><tt><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="color: #333333; font-family: "Bookman Old Style","serif"; font-size: 10pt;"><span style="color: #990000;">Issue 1:<o:p></o:p></span></span></b></tt></pre>
<pre style="line-height: 14.4pt;"><tt><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-size: 10pt;"><span style="color: #990000;">An Executive understanding of Islamic project finance and how would it be different from other type of finance?<o:p></o:p></span></span></tt></pre>
<pre style="line-height: 14.4pt;"><tt><span lang="EN-US" style="color: #333333; font-family: "Bookman Old Style","serif"; font-size: 10pt;"><o:p> </o:p></span></tt><tt><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="color: #333333; font-family: "Bookman Old Style","serif"; font-size: 10pt;">Solution:<o:p></o:p></span></b></tt></pre>
<pre style="line-height: 14.4pt;"><tt><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="color: #333333; font-family: "Bookman Old Style","serif"; font-size: 10pt;"><o:p> </o:p></span></b></tt><tt><span lang="EN-US" style="color: #333333; font-family: "Bookman Old Style","serif"; font-size: 10pt; mso-bidi-font-family: "Bookman Old Style"; mso-fareast-font-family: "Bookman Old Style";"><span style="mso-list: Ignore;">i.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span></tt><span dir="LTR"></span><tt><span lang="EN-US" style="color: #333333; font-family: "Bookman Old Style","serif"; font-size: 10pt;">Any legitimate project recognized by the <i style="mso-bidi-font-style: normal;">Shari’ah</i> Principles required to be financed for a further development.<o:p></o:p></span></tt></pre>
<pre style="line-height: 14.4pt; margin-left: 54pt; mso-list: l4 level1 lfo1; tab-stops: 45.8pt list 54.0pt left 91.6pt 137.4pt 183.2pt 229.0pt 274.8pt 320.6pt 366.4pt 412.2pt 458.0pt 503.8pt 549.6pt 595.4pt 641.2pt 687.0pt 732.8pt; text-align: justify; text-indent: -36pt;"><tt><span lang="EN-US" style="color: #333333; font-family: "Bookman Old Style","serif"; font-size: 10pt; mso-bidi-font-family: "Bookman Old Style"; mso-fareast-font-family: "Bookman Old Style";"><span style="mso-list: Ignore;">ii.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span></tt><span dir="LTR"></span><tt><span lang="EN-US" style="color: #333333; font-family: "Bookman Old Style","serif"; font-size: 10pt;"><span style="mso-spacerun: yes;"> </span>The Owner or the authorized developer of the Project may apply for Islamic justified Financing Facilities to any Islamic financial institution.<o:p></o:p></span></tt></pre>
<pre style="line-height: 14.4pt; margin-left: 54pt; mso-list: l4 level1 lfo1; tab-stops: 45.8pt list 54.0pt left 91.6pt 137.4pt 183.2pt 229.0pt 274.8pt 320.6pt 366.4pt 412.2pt 458.0pt 503.8pt 549.6pt 595.4pt 641.2pt 687.0pt 732.8pt; text-align: justify; text-indent: -36pt;"><tt><span lang="EN-US" style="color: #333333; font-family: "Bookman Old Style","serif"; font-size: 10pt; mso-bidi-font-family: "Bookman Old Style"; mso-fareast-font-family: "Bookman Old Style";"><span style="mso-list: Ignore;">iii.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span></tt><span dir="LTR"></span><tt><span lang="EN-US" style="color: #333333; font-family: "Bookman Old Style","serif"; font-size: 10pt;">Islamic Financial Institution concern may approve the application considering the following components: <o:p></o:p></span></tt></pre>
<pre style="line-height: 14.4pt; margin-left: 18pt; text-align: justify;"><tt><span lang="EN-US" style="color: #333333; font-family: "Bookman Old Style","serif"; font-size: 10pt;"><span style="mso-spacerun: yes;"> </span><o:p></o:p></span></tt></pre>
<pre style="line-height: 14.4pt; margin-left: 111pt; mso-list: l0 level1 lfo2; tab-stops: 45.8pt 91.6pt list 111.0pt left 137.4pt 183.2pt 229.0pt 274.8pt 320.6pt 366.4pt 412.2pt 458.0pt 503.8pt 549.6pt 595.4pt 641.2pt 687.0pt 732.8pt; text-align: justify; text-indent: -18pt;"><tt><span lang="EN-US" style="color: #333333; font-family: Wingdings; font-size: 10pt; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;"><span style="mso-list: Ignore;">§<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span></tt><span dir="LTR"></span><tt><span lang="EN-US" style="color: #333333; font-family: "Bookman Old Style","serif"; font-size: 10pt;">Either JV with equity participation (using <i style="mso-bidi-font-style: normal;">Mudharabah</i> or <i style="mso-bidi-font-style: normal;">Musharakah</i> or any other <i style="mso-bidi-font-style: normal;">Shari’ah</i> approved instruments), or Debt financing (using the BBA or <i style="mso-bidi-font-style: normal;">Murabahah</i> or <i style="mso-bidi-font-style: normal;">Tawarruk</i> as the case may be, that is: a resale on credit with differed settlement by installment within an agreed period of time).<o:p></o:p></span></tt></pre>
<pre style="line-height: 14.4pt; margin-left: 111pt; mso-list: l0 level1 lfo2; tab-stops: 45.8pt 91.6pt list 111.0pt left 137.4pt 183.2pt 229.0pt 274.8pt 320.6pt 366.4pt 412.2pt 458.0pt 503.8pt 549.6pt 595.4pt 641.2pt 687.0pt 732.8pt; text-align: justify; text-indent: -18pt;"><tt><span lang="EN-US" style="color: #333333; font-family: Wingdings; font-size: 10pt; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;"><span style="mso-list: Ignore;">§<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span></tt><span dir="LTR"></span><tt><span lang="EN-US" style="color: #333333; font-family: "Bookman Old Style","serif"; font-size: 10pt;">In a debt financing arrangement, the title of the project may be required by the Financier to be held as a securitization on collateral basis till the debt is fully settled.<o:p></o:p></span></tt></pre>
<pre style="line-height: 14.4pt; margin-left: 93pt; text-align: justify;"><tt><span lang="EN-US" style="color: #333333; font-family: "Bookman Old Style","serif"; font-size: 10pt;"><o:p> </o:p></span></tt></pre>
<pre style="line-height: 14.4pt; margin-left: 54pt; mso-list: l4 level1 lfo1; tab-stops: 45.8pt list 54.0pt left 91.6pt 137.4pt 183.2pt 229.0pt 274.8pt 320.6pt 366.4pt 412.2pt 458.0pt 503.8pt 549.6pt 595.4pt 641.2pt 687.0pt 732.8pt; text-align: justify; text-indent: -36pt;"><tt><span lang="EN-US" style="color: #333333; font-family: "Bookman Old Style","serif"; font-size: 10pt; mso-bidi-font-family: "Bookman Old Style"; mso-fareast-font-family: "Bookman Old Style";"><span style="mso-list: Ignore;">iv.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span></tt><span dir="LTR"></span><tt><span lang="EN-US" style="color: #333333; font-family: "Bookman Old Style","serif"; font-size: 10pt;">It shall be noted that, in any Islamic project financing, profit guarantee, any form of usury or <i style="mso-bidi-font-style: normal;">Shari’ah</i> contrary element shall not be acceptable per se.<o:p></o:p></span></tt></pre>
<pre style="line-height: 14.4pt; margin-left: 54pt; mso-list: l4 level1 lfo1; tab-stops: 45.8pt list 54.0pt left 91.6pt 137.4pt 183.2pt 229.0pt 274.8pt 320.6pt 366.4pt 412.2pt 458.0pt 503.8pt 549.6pt 595.4pt 641.2pt 687.0pt 732.8pt; text-align: justify; text-indent: -36pt;"><tt><span lang="EN-US" style="color: #333333; font-family: "Bookman Old Style","serif"; font-size: 10pt; mso-bidi-font-family: "Bookman Old Style"; mso-fareast-font-family: "Bookman Old Style";"><span style="mso-list: Ignore;">v.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span></tt><span dir="LTR"></span><tt><span lang="EN-US" style="color: #333333; font-family: "Bookman Old Style","serif"; font-size: 10pt;">An Islamic Project financing is different from other types of financing in terms of basically the requirement of securitization (title) on collateral basis against the sound settlement of the debt. <span style="mso-spacerun: yes;"> </span><o:p></o:p></span></tt></pre>
<pre style="line-height: 14.4pt;"><tt><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="color: #333333; font-family: "Bookman Old Style","serif"; font-size: 10pt;"><o:p> </o:p></span></b></tt><tt><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="color: #333333; font-family: "Bookman Old Style","serif"; font-size: 10pt;"><o:p> </o:p></span></b></tt><tt><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="color: #333333; font-family: "Bookman Old Style","serif"; font-size: 10pt;"><span style="color: #990000;">Issue 2:<o:p></o:p></span></span></b></tt></pre>
<pre style="line-height: 14.4pt; text-indent: -36pt;"><span style="color: #990000;"><tt><span lang="EN-US" style="color: #333333; font-family: "Bookman Old Style","serif"; font-size: 10pt;"><span style="mso-tab-count: 1;"> </span></span></tt></span><tt><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-size: 10pt;"><span style="color: #990000;">What sectors usually apply project finance?<o:p></o:p></span></span></tt></pre>
<pre style="line-height: 14.4pt;"><tt><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="color: #333333; font-family: "Bookman Old Style","serif"; font-size: 10pt;"><o:p> </o:p></span></b></tt><tt><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="color: #333333; font-family: "Bookman Old Style","serif"; font-size: 10pt;">Solution:</span></b></tt><tt><span lang="EN-US" style="color: #333333; font-family: "Bookman Old Style","serif"; font-size: 10pt;"><o:p> </o:p></span></tt></pre>
<pre style="line-height: 14.4pt; margin-left: 54pt; mso-list: l6 level1 lfo3; tab-stops: 45.8pt list 54.0pt left 91.6pt 137.4pt 183.2pt 229.0pt 274.8pt 320.6pt 366.4pt 412.2pt 458.0pt 503.8pt 549.6pt 595.4pt 641.2pt 687.0pt 732.8pt; text-align: justify; text-indent: -36pt;"><tt><span lang="EN-US" style="color: #333333; font-family: "Bookman Old Style","serif"; font-size: 10pt; mso-bidi-font-family: "Bookman Old Style"; mso-fareast-font-family: "Bookman Old Style";"><span style="mso-list: Ignore;">i.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span></tt><span dir="LTR"></span><tt><i style="mso-bidi-font-style: normal;"><span lang="EN-US" style="color: #333333; font-family: "Bookman Old Style","serif"; font-size: 10pt;">Shari’ah</span></i></tt><tt><span lang="EN-US" style="color: #333333; font-family: "Bookman Old Style","serif"; font-size: 10pt;"> Justified and Legally recognized Real Estate development related projects.<o:p></o:p></span></tt></pre>
<pre style="line-height: 14.4pt; margin-left: 54pt; mso-list: l6 level1 lfo3; tab-stops: 45.8pt list 54.0pt left 91.6pt 137.4pt 183.2pt 229.0pt 274.8pt 320.6pt 366.4pt 412.2pt 458.0pt 503.8pt 549.6pt 595.4pt 641.2pt 687.0pt 732.8pt; text-align: justify; text-indent: -36pt;"><tt><span lang="EN-US" style="color: #333333; font-family: "Bookman Old Style","serif"; font-size: 10pt; mso-bidi-font-family: "Bookman Old Style"; mso-fareast-font-family: "Bookman Old Style";"><span style="mso-list: Ignore;">ii.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span></tt><span dir="LTR"></span><tt><span lang="EN-US" style="color: #333333; font-family: "Bookman Old Style","serif"; font-size: 10pt;"><span style="mso-spacerun: yes;"> </span><i style="mso-bidi-font-style: normal;">Shari’ah</i> Justified and Legally recognized Mining, Plants, Installations, Explorations and or alike related projects.<o:p></o:p></span></tt></pre>
<pre style="line-height: 14.4pt; margin-left: 54pt; mso-list: l6 level1 lfo3; tab-stops: 45.8pt list 54.0pt left 91.6pt 137.4pt 183.2pt 229.0pt 274.8pt 320.6pt 366.4pt 412.2pt 458.0pt 503.8pt 549.6pt 595.4pt 641.2pt 687.0pt 732.8pt; text-align: justify; text-indent: -36pt;"><tt><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="color: #333333; font-family: "Bookman Old Style","serif"; font-size: 10pt; mso-bidi-font-family: "Bookman Old Style"; mso-fareast-font-family: "Bookman Old Style";"><span style="mso-list: Ignore;">iii.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span></b></tt><span dir="LTR"></span><tt><i style="mso-bidi-font-style: normal;"><span lang="EN-US" style="color: #333333; font-family: "Bookman Old Style","serif"; font-size: 10pt;">Any other Shari’ah</span></i></tt><tt><span lang="EN-US" style="color: #333333; font-family: "Bookman Old Style","serif"; font-size: 10pt;"> Justified and legally recognized Projects either commercially or socially or Public beneficial related projects. <b style="mso-bidi-font-weight: normal;"><o:p></o:p></b></span></tt></pre>
<pre style="line-height: 14.4pt; margin-left: 18pt; text-align: justify;"><tt><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="color: #333333; font-family: "Bookman Old Style","serif"; font-size: 10pt;"><span style="color: #990000;">Issue 3:<o:p></o:p></span></span></b></tt></pre>
<pre style="line-height: 14.4pt; text-indent: -36pt;"><span style="color: #990000;"><tt><span lang="EN-US" style="color: #333333; font-family: "Bookman Old Style","serif"; font-size: 10pt;"><span style="mso-tab-count: 1;"> </span></span></tt></span><tt><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-size: 10pt;"><span style="color: #990000;">In the past 2 years, which Islamic project finance deal would you categorized as a landmark deal. Why?<o:p></o:p></span></span></tt></pre>
<pre style="line-height: 14.4pt;"><tt><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="color: #333333; font-family: "Bookman Old Style","serif"; font-size: 10pt;"><o:p> </o:p></span></b></tt><tt><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="color: #333333; font-family: "Bookman Old Style","serif"; font-size: 10pt;">Solution:<o:p></o:p></span></b></tt></pre>
<pre style="line-height: 14.4pt; margin-left: 18pt; text-align: justify;"><tt><span lang="EN-US" style="color: #333333; font-family: "Bookman Old Style","serif"; font-size: 10pt;"><span style="mso-spacerun: yes;"> </span>i. WPI (IDR) project in JB, <st1:place w:st="on"><st1:country-region w:st="on">Malaysia</st1:country-region></st1:place> (Planning stage);<o:p></o:p></span></tt></pre>
<pre style="line-height: 14.4pt; margin-left: 18pt; text-align: justify;"><tt><span lang="EN-US" style="color: #333333; font-family: "Bookman Old Style","serif"; font-size: 10pt;"> ii. Pavillion project financed by KFH near Bukit Bintang KL, <st1:country-region w:st="on"><st1:place w:st="on">Malaysia</st1:place></st1:country-region>.<o:p></o:p></span></tt></pre>
<pre style="line-height: 14.4pt; margin-left: 54pt; mso-list: l6 level1 lfo3; tab-stops: 45.8pt list 54.0pt left 91.6pt 137.4pt 183.2pt 229.0pt 274.8pt 320.6pt 366.4pt 412.2pt 458.0pt 503.8pt 549.6pt 595.4pt 641.2pt 687.0pt 732.8pt; text-align: justify; text-indent: -36pt;"><tt><span lang="EN-US" style="color: #333333; font-family: "Bookman Old Style","serif"; font-size: 10pt; mso-bidi-font-family: "Bookman Old Style"; mso-fareast-font-family: "Bookman Old Style";"><span style="mso-list: Ignore;">iv.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span></tt><span dir="LTR"></span><st1:place w:st="on"><st1:placename w:st="on"><tt><span lang="EN-US" style="color: #333333; font-family: "Bookman Old Style","serif"; font-size: 10pt;">Dubai</span></tt></st1:placename><tt><span lang="EN-US" style="color: #333333; font-family: "Bookman Old Style","serif"; font-size: 10pt;"> <st1:placetype w:st="on">Tower</st1:placetype></span></tt></st1:place><tt><span lang="EN-US" style="color: #333333; font-family: "Bookman Old Style","serif"; font-size: 10pt;">, UAE (in Progress).<o:p></o:p></span></tt></pre>
<pre style="line-height: 14.4pt; margin-left: 54pt; mso-list: l6 level1 lfo3; tab-stops: 45.8pt list 54.0pt left 91.6pt 137.4pt 183.2pt 229.0pt 274.8pt 320.6pt 366.4pt 412.2pt 458.0pt 503.8pt 549.6pt 595.4pt 641.2pt 687.0pt 732.8pt; text-align: justify; text-indent: -36pt;"><tt><span lang="EN-US" style="color: #333333; font-family: "Bookman Old Style","serif"; font-size: 10pt; mso-bidi-font-family: "Bookman Old Style"; mso-fareast-font-family: "Bookman Old Style";"><span style="mso-list: Ignore;">v.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span></tt><span dir="LTR"></span><tt><span lang="EN-US" style="color: #333333; font-family: "Bookman Old Style","serif"; font-size: 10pt;">Few Hotels in Mekkah, KSA.<o:p></o:p></span></tt></pre>
<pre style="line-height: 14.4pt; margin-left: 18pt; text-align: justify;"><tt><span lang="EN-US" style="color: #333333; font-family: "Bookman Old Style","serif"; font-size: 10pt;"><o:p> </o:p></span></tt></pre>
<pre style="line-height: 14.4pt; margin-left: 54pt; mso-list: l6 level1 lfo3; tab-stops: 45.8pt list 54.0pt left 91.6pt 137.4pt 183.2pt 229.0pt 274.8pt 320.6pt 366.4pt 412.2pt 458.0pt 503.8pt 549.6pt 595.4pt 641.2pt 687.0pt 732.8pt; text-align: justify; text-indent: -36pt;"><tt><span lang="EN-US" style="color: #333333; font-family: "Bookman Old Style","serif"; font-size: 10pt; mso-bidi-font-family: "Bookman Old Style"; mso-fareast-font-family: "Bookman Old Style";"><span style="mso-list: Ignore;">vi.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span></tt><span dir="LTR"></span><tt><span lang="EN-US" style="color: #333333; font-family: "Bookman Old Style","serif"; font-size: 10pt;">A few other projects financed by IDB, KFH, Dubai Islamic Bank, Dallah al Barakah, RHB, Islamic, CIMB, and so on.<o:p></o:p></span></tt></pre>
<pre style="line-height: 14.4pt; text-align: justify;"><tt><span lang="EN-US" style="color: #333333; font-family: "Bookman Old Style","serif"; font-size: 10pt;"><o:p> </o:p></span></tt></pre>
<pre style="line-height: 14.4pt; margin-left: 18pt; text-align: justify;"><tt><span lang="EN-US" style="color: #333333; font-family: "Bookman Old Style","serif"; font-size: 10pt;">Islamic project financing (with risk sharing by opposing the risk transferring concept and also being incorporated with Divine ethical standard on the holistic approach of brotherhood with care and concern)is more attractive as compared to the conventional ones, which are generally adapted on the risk transferring concept.<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span><o:p></o:p></span></tt></pre>
<pre style="line-height: 14.4pt;"><tt><span lang="EN-US" style="color: #333333; font-family: "Bookman Old Style","serif"; font-size: 10pt;"><o:p> </o:p></span></tt><tt><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="color: #333333; font-family: "Bookman Old Style","serif"; font-size: 10pt;"><span style="color: #990000;">Issue 4:<o:p></o:p></span></span></b></tt></pre>
<pre style="line-height: 14.4pt; text-indent: -27pt;"><tt><span lang="EN-US" style="color: #333333; font-family: "Bookman Old Style","serif"; font-size: 10pt;"><span style="mso-tab-count: 1;"><span style="color: #990000;"> </span><span style="color: #990000;"> </span><span style="color: #990000;">Inter</span></span></span></tt><tt><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-size: 10pt;"><span style="color: #990000;">ms of market practice, what is the most common Shari’ah Contract utilized for a project finance deal (Ijarah, Musharakah etc). Why is that so?<o:p></o:p></span></span></tt></pre>
<pre style="line-height: 14.4pt; text-indent: -27pt;"><tt><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-size: 10pt;"><o:p> </o:p></span></tt><tt><span lang="EN-US" style="color: black; font-family: "Bookman Old Style","serif"; font-size: 10pt;"><span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span></span></tt><tt><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="color: #333333; font-family: "Bookman Old Style","serif"; font-size: 10pt;">Solution:<o:p></o:p></span></b></tt></pre>
<pre style="line-height: 14.4pt; margin-left: 54pt; mso-list: l2 level1 lfo4; tab-stops: 45.8pt list 54.0pt left 91.6pt 137.4pt 183.2pt 229.0pt 274.8pt 320.6pt 366.4pt 412.2pt 458.0pt 503.8pt 549.6pt 595.4pt 641.2pt 687.0pt 732.8pt; text-indent: -36pt;"><tt><span lang="EN-US" style="color: black; font-family: "Bookman Old Style","serif"; font-size: 10pt; mso-bidi-font-family: "Bookman Old Style"; mso-fareast-font-family: "Bookman Old Style";"><span style="mso-list: Ignore;">i.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span></tt><span dir="LTR"></span><tt><i style="mso-bidi-font-style: normal;"><span lang="EN-US" style="color: black; font-family: "Bookman Old Style","serif"; font-size: 10pt;">Musharakah Mutanaqisah</span></i></tt><tt><span lang="EN-US" style="color: black; font-family: "Bookman Old Style","serif"; font-size: 10pt;"> (Diminishing Partnership).<o:p></o:p></span></tt></pre>
<pre style="line-height: 14.4pt; margin-left: 54pt; mso-list: l2 level1 lfo4; tab-stops: 45.8pt list 54.0pt left 91.6pt 137.4pt 183.2pt 229.0pt 274.8pt 320.6pt 366.4pt 412.2pt 458.0pt 503.8pt 549.6pt 595.4pt 641.2pt 687.0pt 732.8pt; text-indent: -36pt;"><tt><span lang="EN-US" style="color: black; font-family: "Bookman Old Style","serif"; font-size: 10pt; mso-bidi-font-family: "Bookman Old Style"; mso-fareast-font-family: "Bookman Old Style";"><span style="mso-list: Ignore;">ii.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span></tt><span dir="LTR"></span><tt><i style="mso-bidi-font-style: normal;"><span lang="EN-US" style="color: black; font-family: "Bookman Old Style","serif"; font-size: 10pt;">Ijarah </span></i></tt><tt><span lang="EN-US" style="color: black; font-family: "Bookman Old Style","serif"; font-size: 10pt;">(Leasing)<o:p></o:p></span></tt></pre>
<pre style="line-height: 14.4pt; margin-left: 54pt; mso-list: l2 level1 lfo4; tab-stops: 45.8pt list 54.0pt left 91.6pt 137.4pt 183.2pt 229.0pt 274.8pt 320.6pt 366.4pt 412.2pt 458.0pt 503.8pt 549.6pt 595.4pt 641.2pt 687.0pt 732.8pt; text-indent: -36pt;"><tt><i style="mso-bidi-font-style: normal;"><span lang="EN-US" style="color: black; font-family: "Bookman Old Style","serif"; font-size: 10pt; mso-bidi-font-family: "Bookman Old Style"; mso-fareast-font-family: "Bookman Old Style";"><span style="mso-list: Ignore;">iii.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span></i></tt><span dir="LTR"></span><tt><i style="mso-bidi-font-style: normal;"><span lang="EN-US" style="color: black; font-family: "Bookman Old Style","serif"; font-size: 10pt;">Istisna</span></i></tt><tt><span lang="EN-US" style="color: black; font-family: "Bookman Old Style","serif"; font-size: 10pt;">’ (Manufacturing).<i style="mso-bidi-font-style: normal;"><o:p></o:p></i></span></tt></pre>
<pre style="line-height: 14.4pt; margin-left: 54pt; mso-list: l2 level1 lfo4; tab-stops: 45.8pt list 54.0pt left 91.6pt 137.4pt 183.2pt 229.0pt 274.8pt 320.6pt 366.4pt 412.2pt 458.0pt 503.8pt 549.6pt 595.4pt 641.2pt 687.0pt 732.8pt; text-indent: -36pt;"><tt><span lang="EN-US" style="color: black; font-family: "Bookman Old Style","serif"; font-size: 10pt; mso-bidi-font-family: "Bookman Old Style"; mso-fareast-font-family: "Bookman Old Style";"><span style="mso-list: Ignore;">iv.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span></tt><span dir="LTR"></span><tt><i style="mso-bidi-font-style: normal;"><span lang="EN-US" style="color: black; font-family: "Bookman Old Style","serif"; font-size: 10pt;">al-Ijarah Tantahi Bi al Tamleek </span></i></tt><tt><span lang="EN-US" style="color: black; font-family: "Bookman Old Style","serif"; font-size: 10pt;">(Leasing Leading to (ownership)<o:p></o:p></span></tt></pre>
<pre style="line-height: 14.4pt; margin-left: 18pt;"><tt><span lang="EN-US" style="color: black; font-family: "Bookman Old Style","serif"; font-size: 10pt;">The above instruments are commonly adapted in Islamic project financing have been evidentially proven the risk minimization with better benefits for all the parties concerned.</span></tt><tt><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="color: #333333; font-family: "Bookman Old Style","serif"; font-size: 10pt;"><span style="mso-spacerun: yes;"> </span><o:p></o:p></span></b></tt></pre>
<pre style="line-height: 14.4pt;"><tt><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="color: #333333; font-family: "Bookman Old Style","serif"; font-size: 10pt;"><o:p> </o:p></span></b></tt><tt><span lang="EN-US" style="color: #333333; font-family: "Bookman Old Style","serif"; font-size: 10pt;"><o:p> </o:p></span></tt><tt><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-size: 10pt;"><span style="color: #990000;">Issue 5:<o:p></o:p></span></span></b></tt></pre>
<pre style="line-height: 14.4pt;"><tt><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-size: 10pt;"><span style="color: #990000;">Is there any difference between the Malaysian and GCC market in Terms of contract utilized for project finance?<o:p></o:p></span></span></tt></pre>
<pre style="line-height: 14.4pt;"><tt><span lang="EN-US" style="color: #333333; font-family: "Bookman Old Style","serif"; font-size: 10pt;"><o:p> </o:p></span></tt><tt><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="color: #333333; font-family: "Bookman Old Style","serif"; font-size: 10pt;">Solution:<o:p></o:p></span></b></tt></pre>
<pre style="line-height: 14.4pt;"><tt><span lang="EN-US" style="color: #333333; font-family: "Bookman Old Style","serif"; font-size: 10pt;">In most cases the application of Islamic project financing mechanisms adapted in <st1:place w:st="on"><st1:country-region w:st="on">Malaysia</st1:country-region></st1:place> and GCC are quite similar except in the following avenues:<o:p></o:p></span></tt></pre>
<pre style="line-height: 14.4pt;"><tt><span lang="EN-US" style="color: #333333; font-family: "Bookman Old Style","serif"; font-size: 10pt;"><o:p> </o:p></span></tt></pre>
<pre style="line-height: 14.4pt; margin-left: 45pt; mso-list: l1 level1 lfo5; tab-stops: list 45.0pt left 91.6pt 137.4pt 183.2pt 229.0pt 274.8pt 320.6pt 366.4pt 412.2pt 458.0pt 503.8pt 549.6pt 595.4pt 641.2pt 687.0pt 732.8pt; text-indent: -18pt;"><tt><span lang="EN-US" style="color: #333333; font-family: "Bookman Old Style","serif"; font-size: 10pt; mso-bidi-font-family: "Bookman Old Style"; mso-fareast-font-family: "Bookman Old Style";"><span style="mso-list: Ignore;">i.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span></tt><span dir="LTR"></span><st1:country-region w:st="on"><tt><span lang="EN-US" style="color: #333333; font-family: "Bookman Old Style","serif"; font-size: 10pt;">Malaysia</span></tt></st1:country-region><tt><span lang="EN-US" style="color: #333333; font-family: "Bookman Old Style","serif"; font-size: 10pt;"> adapts <i style="mso-bidi-font-style: normal;">Bai’ al- Dayeen</i> (Debt Trading) and <i style="mso-bidi-font-style: normal;">Bay’ al- Ina’</i> (Buy back <st1:city w:st="on"><st1:place w:st="on">Sale</st1:place></st1:city>).<o:p></o:p></span></tt></pre>
<pre style="line-height: 14.4pt; margin-left: 65.25pt; mso-list: l1 level1 lfo5; tab-stops: 45.8pt list 65.25pt left 91.6pt 137.4pt 183.2pt 229.0pt 274.8pt 320.6pt 366.4pt 412.2pt 458.0pt 503.8pt 549.6pt 595.4pt 641.2pt 687.0pt 732.8pt; text-indent: -36pt;"><tt><span lang="EN-US" style="color: black; font-family: "Bookman Old Style","serif"; font-size: 10pt; mso-bidi-font-family: "Bookman Old Style"; mso-fareast-font-family: "Bookman Old Style";"><span style="mso-list: Ignore;">ii.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span></tt><span dir="LTR"></span><tt><span lang="EN-US" style="color: #333333; font-family: "Bookman Old Style","serif"; font-size: 10pt;">In the GCC on the other hand,<i style="mso-bidi-font-style: normal;"> Bai’ al- Dayeen</i> (Debt Trading) and <i style="mso-bidi-font-style: normal;">Bay’ al- Ina’</i> (Buy back <st1:city w:st="on"><st1:place w:st="on">Sale</st1:place></st1:city>) adapted in any transaction are strongly opposed. Alternatively in the GCC the doctrine of al-Tawarruk (Special Purpose Vehicle) is adapted in most of the Debt financing arrangements including Project Financing besides recognizing and applying </span></tt><tt><i style="mso-bidi-font-style: normal;"><span lang="EN-US" style="color: black; font-family: "Bookman Old Style","serif"; font-size: 10pt;">Musharakah Mutanaqisah</span></i></tt><tt><span lang="EN-US" style="color: black; font-family: "Bookman Old Style","serif"; font-size: 10pt;"> (Diminishing Partnership).<o:p></o:p></span></tt></pre>
<pre style="line-height: 14.4pt; margin-left: 29.25pt;"><tt><span lang="EN-US" style="color: #333333; font-family: "Bookman Old Style","serif"; font-size: 10pt;"> <o:p></o:p></span></tt></pre>
<pre style="line-height: 14.4pt;"><tt><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-size: 10pt;"><span style="color: #990000;">Issue 6:<o:p></o:p></span></span></b></tt></pre>
<pre style="line-height: 14.4pt;"><tt><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-size: 10pt;"><span style="color: #990000;">Do you observe an increasing trend of Islamic project finance in the market? Why or why not?<o:p></o:p></span></span></tt></pre>
<pre style="line-height: 14.4pt;"><tt><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="color: #333333; font-family: "Bookman Old Style","serif"; font-size: 10pt;"><o:p> </o:p></span></b></tt><tt><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="color: #333333; font-family: "Bookman Old Style","serif"; font-size: 10pt;">Solution:<o:p></o:p></span></b></tt></pre>
<pre style="line-height: 14.4pt; margin-left: 36pt; mso-list: l3 level1 lfo6; mso-text-indent-alt: -9.0pt; tab-stops: list 36.0pt left 45.8pt 91.6pt 137.4pt 183.2pt 229.0pt 274.8pt 320.6pt 366.4pt 412.2pt 458.0pt 503.8pt 549.6pt 595.4pt 641.2pt 687.0pt 732.8pt; text-align: justify; text-indent: -36pt;"><tt><span lang="EN-US" style="color: #333333; font-family: "Bookman Old Style","serif"; font-size: 10pt; mso-bidi-font-family: "Bookman Old Style"; mso-fareast-font-family: "Bookman Old Style";"><span style="mso-list: Ignore;"><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span>I.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span></tt><span dir="LTR"></span><tt><span lang="EN-US" style="color: #333333; font-family: "Bookman Old Style","serif"; font-size: 10pt;">There is an increasing trend of Islamic project financing<span style="mso-spacerun: yes;"> </span>in GCC, UAE, Malaysia, OIC<span style="mso-spacerun: yes;"> </span>Countries as well as some other parts of the world especially through the arrangement of REITs, issuance of <i style="mso-bidi-font-style: normal;">Sukuk</i>, venture capitalizing and also <i style="mso-bidi-font-style: normal;">Mosharakah Mutanaqisah</i> (Diminishing Partnership) and so on.<o:p></o:p></span></tt></pre>
<pre style="line-height: 14.4pt; margin-left: 36pt; mso-list: l3 level1 lfo6; mso-text-indent-alt: -9.0pt; tab-stops: list 36.0pt left 45.8pt 91.6pt 137.4pt 183.2pt 229.0pt 274.8pt 320.6pt 366.4pt 412.2pt 458.0pt 503.8pt 549.6pt 595.4pt 641.2pt 687.0pt 732.8pt; text-align: justify; text-indent: -36pt;"><tt><span lang="EN-US" style="color: #333333; font-family: "Bookman Old Style","serif"; font-size: 10pt; mso-bidi-font-family: "Bookman Old Style"; mso-fareast-font-family: "Bookman Old Style";"><span style="mso-list: Ignore;"><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span>II.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span></tt><span dir="LTR"></span><tt><span lang="EN-US" style="color: #333333; font-family: "Bookman Old Style","serif"; font-size: 10pt;">This is perhaps because of, rational risk management mechanisms with sharing concept, sustainable profit return, transparence transaction and flexible options enjoined by all parties in the contract.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></tt></pre>
<pre style="line-height: 14.4pt;"><tt><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="color: #333333; font-family: "Bookman Old Style","serif"; font-size: 10pt;"><o:p> </o:p></span></b></tt><tt><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-size: 10pt;"><span style="color: #990000;">Issue 7:<o:p></o:p></span></span></b></tt></pre>
<pre style="line-height: 14.4pt;"><tt><span lang="EN-US" style="color: blue; font-family: "Bookman Old Style","serif"; font-size: 10pt;"><span style="color: #990000;">Would you highlight two issues and challenges in Islamic project finance and how do you overcome these?<o:p></o:p></span></span></tt></pre>
<pre style="line-height: 14.4pt;"><tt><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="color: #333333; font-family: "Bookman Old Style","serif"; font-size: 10pt;"><o:p> </o:p></span></b></tt><tt><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="color: #333333; font-family: "Bookman Old Style","serif"; font-size: 10pt;">Solution:<o:p></o:p></span></b></tt></pre>
<span lang="EN-US" style="mso-ascii-font-family: "Times New Roman"; mso-ascii-theme-font: major-bidi; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: major-bidi; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-bidi; mso-hansi-font-family: "Times New Roman"; mso-hansi-theme-font: major-bidi;"><span style="mso-list: Ignore;"><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span>I.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span dir="LTR"></span><span lang="EN-US" style="mso-ascii-font-family: "Times New Roman"; mso-ascii-theme-font: major-bidi; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: major-bidi; mso-hansi-font-family: "Times New Roman"; mso-hansi-theme-font: major-bidi;">Lack of Proper skill in underwriting the deal
by considering the relevant risk factors;<o:p></o:p></span><br />
<span lang="EN-US" style="mso-ascii-font-family: "Times New Roman"; mso-ascii-theme-font: major-bidi; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: major-bidi; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-bidi; mso-hansi-font-family: "Times New Roman"; mso-hansi-theme-font: major-bidi;"><span style="mso-list: Ignore;"><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span>II.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span dir="LTR"></span><span lang="EN-US" style="mso-ascii-font-family: "Times New Roman"; mso-ascii-theme-font: major-bidi; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: major-bidi; mso-hansi-font-family: "Times New Roman"; mso-hansi-theme-font: major-bidi;">Poor time management and applying irrelevant
skill in completing and managing the project.<o:p></o:p></span><br />
<span lang="EN-US" style="mso-ascii-font-family: "Times New Roman"; mso-ascii-theme-font: major-bidi; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: major-bidi; mso-hansi-font-family: "Times New Roman"; mso-hansi-theme-font: major-bidi;"><span style="mso-spacerun: yes;"> </span>The
above challenges may be overcome through the smart professionalism,
cooperation, good faith and trustworthiness with ethical standard at all levels
of activities.<o:p></o:p></span><br />
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt 36pt; mso-list: l5 level1 lfo7; mso-text-indent-alt: -9.0pt; tab-stops: list 36.0pt; text-indent: -36pt;">
<span lang="EN-US" style="font-family: "Bookman Old Style","serif"; mso-bidi-font-family: "Bookman Old Style"; mso-fareast-font-family: "Bookman Old Style";"><span style="mso-list: Ignore;"><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
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Mohd. Ma'sum Billahhttp://www.blogger.com/profile/14029507777590329011noreply@blogger.com0tag:blogger.com,1999:blog-7101557101807536516.post-45270209337520084632013-03-05T01:32:00.003-08:002013-03-05T01:38:17.211-08:00Steps for the Establishment of 'Takaful Operation'<span class="Apple-style-span" style="-webkit-border-horizontal-spacing: 0px; -webkit-border-vertical-spacing: 0px; -webkit-text-decorations-in-effect: none; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px; border-collapse: separate; color: black; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px;"><span class="Apple-style-span" style="font-family: "times new roman", "new york", times, serif; font-size: 13px;"><span id="yui_3_7_2_17_1362473233775_99"><span style="color: #6aa84f;"><span><strong><span style="font-size: small;">The establishment
of any "Takaful Operation" in any Jurisdiction, the following steps
may be followed:<o:p></o:p></span></strong></span></span></span></span></span><br />
<span class="Apple-style-span" style="-webkit-border-horizontal-spacing: 0px; -webkit-border-vertical-spacing: 0px; -webkit-text-decorations-in-effect: none; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px; border-collapse: separate; color: black; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px;"><span class="Apple-style-span" style="font-family: "times new roman", "new york", times, serif; font-size: 13px;"><span id="yui_3_7_2_17_1362473233775_99"><span style="color: #6aa84f;"><div id="yui_3_7_2_17_1362473233775_49" style="background-color: transparent; color: black; font-family: "times new roman", "new york", times, serif; font-size: 13px; font-style: normal; margin: 0px;">
<span style="color: black; font-size: small;">
</span><br />
<span><span style="font-size: small;">
<strong><span style="color: #cc0000;">Pre-licensing
Steps:</span></strong></span></span><span style="color: black; font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><o:p></o:p></span><br />
<span style="color: black; font-size: small;">
</span><span style="font-size: small;"><span style="color: #0060bf; font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">1. Project paper.</span></span><br />
<span style="font-size: small;"><span style="color: #0060bf; font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">2. Funding
(Confirmation).</span><span style="font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><o:p></o:p></span></span><br />
<span style="color: black; font-size: small;">
</span><span style="font-size: small;"><span style="color: #0060bf; font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">3. Project Plan.</span><span style="font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><o:p></o:p></span></span><br />
<span style="color: black; font-size: small;">
</span><span style="font-size: small;"><span style="color: #0060bf; font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">4. Training Manual (to train a
management team before the license is obtained).</span><span style="font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><o:p></o:p></span></span><br />
<span style="color: black; font-size: small;">
</span><span style="font-size: small;"><span style="color: #0060bf; font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">5. Policies & Guidelines (<i>Shari'ah</i>
Standard of <em>Takaful</em>).</span><span style="font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><o:p></o:p></span></span><br />
<span style="color: black; font-size: small;">
</span><span style="font-size: small;"><span style="color: #0060bf; font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">6. Corporate Manual.</span><span style="font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><o:p></o:p></span></span><br />
<span style="color: black; font-size: small;">
</span><span style="font-size: small;"><span style="color: #0060bf; font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">7. Workshop (to train the
management team).</span><span style="font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><o:p></o:p></span></span><br />
<span style="color: black; font-size: small;">
</span><span style="font-size: small;"><span style="color: #0060bf; font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">8. National Conference (for
Public awareness).</span><span style="font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><o:p></o:p></span></span><br />
<span style="color: black; font-size: small;">
</span><span><br /><span style="font-size: small;">
<strong><span style="color: #cc0000;">Post-licensing
Steps:</span></strong></span></span><span style="color: black; font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><o:p></o:p></span><br />
<span style="color: black; font-size: small;">
</span><span style="font-size: small;"><span style="color: #0060bf; font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">1. System (Software).</span><span style="font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><o:p></o:p></span></span><br />
<span style="color: black; font-size: small;">
</span><span style="font-size: small;"><span style="color: #0060bf; font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">2. Forms & Procedures.</span><span style="font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><o:p></o:p></span></span><br />
<span style="color: black; font-size: small;">
</span><span style="font-size: small;"><span style="color: #0060bf; font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">3. Website.</span><span style="font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><o:p></o:p></span></span><br />
<span style="color: black; font-size: small;">
</span><span style="font-size: small;"><span style="color: #0060bf; font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">4. Marketing Plan</span><span style="font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><o:p></o:p></span></span><br />
<span style="color: black; font-size: small;">
</span><span style="font-size: small;"><span style="color: #0060bf; font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">5. Business Plan (5 years).</span><span style="font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><o:p></o:p></span></span><br />
<span style="color: black; font-size: small;">
</span><span style="font-size: small;"><span style="color: #0060bf; font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">6. Products.</span><span style="font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><o:p></o:p></span></span><br />
<span style="color: black; font-size: small;">
</span><span style="font-size: small;"><span style="color: #0060bf; font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">7. Office.</span><span style="font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><o:p></o:p></span></span><br />
<span style="color: black; font-size: small;">
</span><span style="font-size: small;"><span style="color: #0060bf; font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">8. Recruitment.</span><span style="font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><o:p></o:p></span></span><br />
<span style="color: black; font-size: small;">
</span><span style="font-size: small;"><span style="color: #0060bf; font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">9. Launching.</span><span style="font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><o:p></o:p></span></span><br />
<span style="color: black; font-size: small;">
</span><span style="font-size: small;"><span style="color: #0060bf; font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">10. Commencement of Operation.</span><span style="font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><o:p></o:p></span></span><br />
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<span class="Apple-style-span" id="yui_3_7_2_17_1362473233775_194"></span> </div>
</span></span><br />Mohd. Ma'sum Billahhttp://www.blogger.com/profile/14029507777590329011noreply@blogger.com0tag:blogger.com,1999:blog-7101557101807536516.post-61220551436537259962013-02-27T01:21:00.005-08:002013-02-27T01:21:48.936-08:00FOREX ? the shari'ah alternative...<br />The modern application of Forex involves the element of <em>Riba'</em> (usury), though some '<em>Ulama </em>approve it based on <em>Dharurah</em> (necessity).<br />
<br />
The <em>Shari'ah</em> alternative is with screening mechanism based on the <em>Shari'ah </em>principles of "<em>Shuftazah</em> (exchange), <em>Hawalah</em> (transfer), <em>Ju'alah</em> (reward) & <em>Ujrah</em> (service charge)" - MB Mohd. Ma'sum Billahhttp://www.blogger.com/profile/14029507777590329011noreply@blogger.com1tag:blogger.com,1999:blog-7101557101807536516.post-16179929896416360312013-02-17T18:31:00.004-08:002013-02-17T22:26:38.876-08:00Global Islamic Fund Management? its modern world view<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: left;">
<span lang="EN-US">Islam is a an integrated
holistic system with universal character revealed by <em>Allah SWT</em> for the benefit
and protection of all creatures. Islam does not separate <i style="mso-bidi-font-style: normal;">ibadah</i> (worship) from socio-eco-political faculties of life. It is
derived from the meaning of Islam as <em>ad-deen.
Ad-deen</em> can be understood as a significant way of life and faith to <em>Allah SWT.</em></span></div>
<div style="text-align: left;">
</div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US">The purpose of
human’s creation is to make a fullest submission to almighty <em>Allah SWT</em>. This obligation is not limited either
by the time or by the place, but it covers all aspects of human life. Every
activity of human being which is within the limit of <em>Shari’ah</em> is measured as
<em>ibadah</em>. The activities of <em>ibadah</em> will be rewarded by <em>Allah SWT.</em></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US">Today, Muslim is the
second larger group of religions after Christian. They have a lot of
wealth to invest. However, there are a few of Islamic counters offered for
Muslim. This scenario gives a bad impact to Muslim because Muslim' daily
activities should be within the limit of <em>Shari’ah</em>. Otherwise, it will be
rejected by the <em>Allah SWT</em> and the doers may be considered as ignorant. </span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US">Islamic fund
management is a solution for Muslim investors. This solution gives more chances
for Muslim to invest in accordance to the <em>Shari’ah</em>. This fund is basically similar
to the conventional fund except in the compliances with the <em>Shari’ah</em> rules and
regulations. For an Islamic fund, it is prohibited to invest in the companies
which involve in the <em>haram</em> (prohibited)<em> </em>activities such as gambling, alcoholic business, pornographic,
usury based <em>(ribawi)</em> institutions and the companies which financed by <em>ribawi</em> institutions. </span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US"><o:p> </o:p></span><span lang="EN-US">These strict
rules and regulations enshrined by Islam is purposely to ensure that Muslim operate
within the limit of <em>Shari’ah.</em> In <em>al-Quran 2:275,</em> <em>Allah SWT</em> has mentioned as all b</span><span lang="EN-US">usinesses are
<em>halal</em> (lawful) but any transaction which is based on <em>riba</em> is considered
<em>haram</em>. When an activity is considered <em>haram</em> it will be rejected by <em>Allah</em> <em>SWT</em> and
will fall among sinful acts. </span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US">Every investment
deal is not free from risks. In Islamic fund, there are risks. The risks in
Islamic fund are various depending on counters chosen by the investors. Islam
accepts risk as its own but rejects any kind of speculations. This is because
speculation may bring to the gharar and maisir.<span style="mso-spacerun: yes;">
</span>These two principles are among the haram which are clearly highlighted
by Islamic scholars. These concepts also may lead the stronger people depress
those weak.</span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US">As the time
changes, Islamic fund becomes a popular investment opportunity. This was proved
by the increasing in the number of Islamic counters. The growths of the Islamic
counters were occurred in every part of the world. As examples Saudi American
Bank in <st1:country-region w:st="on">Saudi Arabia</st1:country-region>, Bank
Islam Malaysia Berhad in <st1:place w:st="on"><st1:country-region w:st="on">Malaysia</st1:country-region></st1:place>
and many more.</span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US">At last, Islamic
fund is an alternative especially for Muslims at large and generally for the
whole population. The fund is purposely to enhance the economic status of the
ummah. At the same time, it will purify and get closer the Muslims to their
Creator. The fund will give the chance for a Muslims to avoid themselves
enrolled in haram’s counter. From the points, the activities of Islamic fund
are a Fardhu Kifayah. For the Muslims, they have to support this sacred
activity. Although, the efficiency of the organization is still debatable but
the task of Muslims to support the organization are still there. Allah SWT has
encouraged the Muslims to support the good deeds and prohibit the bad deeds. </span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US"><o:p> </o:p></span><b style="mso-bidi-font-weight: normal;"><span lang="EN-US">Management Mechanism of Islamic Fund</span></b></div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US"></span></b> </div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US"></span></b><span lang="EN-US"><o:p> </o:p></span><v:line from="1in,3pt" id="_x0000_s1036" style="left: 0px; position: absolute; text-align: left; z-index: 251639808;" to="243pt,3pt">
<v:stroke endarrow="block">
</v:stroke></v:line><span lang="EN-US">INVESTOR<span style="mso-tab-count: 3;"> </span>money (investment)<span style="mso-tab-count: 1;"> </span>FUND<span style="mso-tab-count: 2;"> </span></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<v:line from="45pt,7.2pt" id="_x0000_s1039" style="left: 0px; position: absolute; text-align: left; z-index: 251642880;" to="45pt,34.2pt">
<v:stroke endarrow="block">
</v:stroke></v:line><v:line from="54pt,7.2pt" id="_x0000_s1037" style="flip: x; left: 0px; position: absolute; text-align: left; z-index: 251640832;" to="261pt,7.2pt">
<v:stroke endarrow="block">
</v:stroke></v:line><span lang="EN-US"><span style="mso-tab-count: 4;"> </span></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US"><span style="mso-tab-count: 4;"> </span>Investment
gain</span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<v:oval filled="f" id="_x0000_s1038" style="height: 27pt; left: 0px; margin-left: -9pt; margin-top: 6.6pt; position: absolute; text-align: left; width: 108pt; z-index: 251641856;"><span lang="EN-US"><o:p> </o:p></span></v:oval><span lang="EN-US">Attitude of
investor</span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US"><o:p> </o:p></span><span lang="EN-US">*attitudes of
the investor are being discussed in the text</span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US"><o:p> </o:p></span><span lang="EN-US">Investment is an
activity involving a portion of money to allocate to the certain types of
business and seeking for profit. The investors will not do anything related to
the operation of the company. Since the investors are not involved in managing
the operating of the company, so he is not entitled for any salaries or wages,
he is only entitled for the profit gained by the company. Thus, the investors
have to have certain expertise in choosing which companies those have bright
prospect in gaining the profit.</span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US"><o:p> </o:p></span><span lang="EN-US">In this section,
the paper will discuss some pillars of wisdom in investing the money. The
pillars were taken from the idea of conventional fund management but have been
taken into consideration by the writer regarding the Islamic point of view. The
writer tried to view them in the Islamic point of view. The pillars are:</span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US"><o:p> </o:p></span><span lang="EN-US"><span style="mso-list: Ignore;">1)<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span dir="LTR"></span><span lang="EN-US">Successful
investing involves doing just a few things right and avoiding serious mistakes.
It means an investor has to beware. He has to plan and do the homework
regarding the strength, weaknesses, opportunities, and threats of the prospect
organization. He or she also has to know the activities of the company. He has
to know whether the company pros or cons the Islamic shari’ah. He has to be
careful in each step he moves. He has to avoid any serious mistake that will
give big impact to his investment.</span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US"><o:p> </o:p></span><span lang="EN-US"><span style="mso-list: Ignore;">2)<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span dir="LTR"></span><span lang="EN-US">When there
are multiple solutions to the problem, choose the simplest one. Sometimes, an
investor will face a serious problem. This problem is usually difficult to
solve. Once the problem is clearly defined, there are multiple solutions to
this problem. So, the investor wills again facing the problem in choosing the
solution. Based on the prudent concept, the writer suggests the investor to
choose the simplest one. As an example, if an investor confuse whether to invest
in highly risk company or low risk company, the high risk company offered 5%
rate of return but low risk company only offer 2.5% rate of return, based on
this principle, the investor has to rely on the investment which is more
guaranteed.</span></div>
<br />
<span lang="EN-US"><span style="mso-list: Ignore;">3)<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span dir="LTR"></span><span lang="EN-US">Try to earn
money every time even it is small. The investor has not left his money idle. He
has to gain something even the gaining is too small. In Islam the idle money is
entitled for zakat if it is over the certain limit or nisab and being passed
the haul or period of time. The idle is zakatable because Islam encouraged the
ummah to activate his wealth. And later he the wealthy peoples are being able
to help the poor.</span><br />
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US"><o:p> </o:p></span><span lang="EN-US"><span style="mso-list: Ignore;">4)<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span dir="LTR"></span><span lang="EN-US">Today is
better than yesterday. This is the principle of the Muslims. A Muslim must be
today is better than yesterday. Based on this principle, an investor who has
been in investment field so long has to be more expert in choosing the
companies to invest. So, the Muslim investors are logically being able to gain
more after some time in investment field.</span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US"><o:p> </o:p></span><span lang="EN-US"><span style="mso-list: Ignore;">5)<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span dir="LTR"></span><span lang="EN-US">An
investor has to diversify his investment. In investment, an investor is better
to invest in various types of businesses. He has to invest in multiple types of
risk businesses. Rather than stick on only one type of business. This is
because the diversification will help the investor balances his risk. In short,
an investor who invests in three companies will have more chances to balance
the risks rather than the investor who only invests in one company. The lost of
a company can be covered by the profit of the other two companies. However, for
single company the lost will solely from that company and there is no company
which is available to bring the investor to the equilibrium point or more.</span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US"><o:p> </o:p></span><span lang="EN-US"><span style="mso-list: Ignore;">6)<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span dir="LTR"></span><span lang="EN-US">Cost-benefit
analysis is the best in determining which companies are the best places to
invest. Cost-benefit analysis is prepared by taking into consideration all the
costs those be incurred when the investor invests. These costs will be deducted
from the expecting benefits those be receipt after the investment. If the
receipt is higher than the expense so the investor may decide to invest, if not
is vice versa.</span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US"><o:p> </o:p></span><span lang="EN-US"><span style="mso-list: Ignore;">7)<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span dir="LTR"></span><span lang="EN-US">Know the
operating of the business. Before investing in any business, an investor is
required to know at least basic information regarding the activity of the
business he or she wants to invest. This is to ensure that, an investor wills
not do the blind imitation and blind investment. The blind investment may lead
to the loss of capital. This lost of capital can be avoided if the investors do
the homework in studying the prospect types of the businesses. He or she can
rely on the current users’ behaviors, environments, status of the economy and
other financial and non-financial data. He or she also can rely his or hers
assumption based on the rating provided by rating agencies such as RAM in <st1:place w:st="on"><st1:country-region w:st="on">Malaysia</st1:country-region></st1:place>.</span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US"><o:p> </o:p></span><span lang="EN-US"><span style="mso-list: Ignore;">8)<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span dir="LTR"></span><span lang="EN-US">The
investors have to have balance estimation. It means, not to be overestimates
and be underestimates. Usually, the investors will do the prior estimation
before doing any analysis and later accept or reject to invest. This prior
estimation is so important whether the investors will choose it or not for
further analysis. Overestimates and underestimates will lead the investor to
the state of frustration if he or she failed to achieve his or hers estimation.</span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US"><o:p> </o:p></span><span lang="EN-US"><span style="mso-list: Ignore;">9)<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span dir="LTR"></span><span lang="EN-US">Beware of
the last year achievement. An investor should not totally depend to the last
year achievement of the company. The situation and environment are always kept
on changing. Therefore the past year achievement is only the basis. It can be
used as a rough glance, not totally depend on it. The past achievement is good
for checking the reliability of the internal control of the management, but it
is not good to measure the future prospect.</span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US"><o:p> </o:p></span><span lang="EN-US"><span style="mso-list: Ignore;">10)<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span dir="LTR"></span><span lang="EN-US">The
financial market is related to the fears, hopes, knowledge and greed of all
investors everywhere. The environment situation moulds the feeling of all
investors. Sometimes the feeling may boost the market and lead the market be
bullish, if not the market will lead to bearish. For Muslim investors, all of
these feeling should not be there. This is because; they will lead to serious
speculation which is haram.</span></div>
<br />
<span lang="EN-US">11)<span style="mso-tab-count: 1;"> </span>An investor
should have long term planning. To be as a good investor, he or she to have
long term planning. The investors should not grab a chance which is short term
based. This is because patience and consistency are valuable assets for the
intelligent investors</span><br />
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US"><o:p> </o:p></span><b style="mso-bidi-font-weight: normal;"><span lang="EN-US">Classes of Investors</span></b></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US">THE
TYPES OF THE INVESTORS</span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US">AGGRESSIVE<span style="mso-tab-count: 2;"> </span>MODERATE<span style="mso-tab-count: 2;"> </span>CONSERVATIVE<span style="mso-tab-count: 1;"> </span><span style="mso-tab-count: 1;"> </span></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt 72pt; text-align: justify; text-indent: 36pt;">
<span lang="EN-US">EXTREMELY CONSERVATIVE<b style="mso-bidi-font-weight: normal;"><u><o:p></o:p></u></b></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US">Actually, the
types of funds to invest are depending on the objective of the investors. The
investors have to decide how big the risks they are going to accept. The
acceptance is based on how much and how long they are going to accept the
risks. The ultimate purpose of investment is the income the investors are going
to receive. </span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US">Here, the writer
will state four basic types of investors who are dealing with the risks for the
investment; aggressive, moderate, conservative, and extremely conservative.
Aggressive investor is the person who is not interested to the current income
but he is interested to the capital appreciation; capital appreciation is the
value increases when the company’s capital growth as the impact of the
company’s business success. This type of person is willing to accept high
market risk.</span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US">The second
groups of investors are who willing to accept moderate market risk. He or she
views current income as a subordinate to capital appreciation. For them,
current income is a second important receipt after capital appreciation.</span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US"><o:p> </o:p></span><span lang="EN-US">The third groups
of peoples are conservative. The conservative is the person who is willing to
accept only limited market risk. For them, current income is highly important
rather than capital appreciation. Meanwhile, extremely conservative are not
willing to accept any risk. He or she tries to greatly reduce the market risk
and extremely increase the market return or current income. He is not
interested most on capital appreciation.</span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US">For further
discussion, the writer is going to state about the acceptable risk for the
investment. The level of acceptable risk is referred as <i style="mso-bidi-font-style: normal;">risk tolerance</i>. The risk tolerances for the investors are differed
among the investors.<span style="mso-spacerun: yes;"> </span>Usually, the
investors will determine the risk tolerance based on the individual’s current
economic circumstances. The best measurement for risk tolerance is <i style="mso-bidi-font-style: normal;">sleep quotient</i>; sleep quotient is the
level of risk that a person thinks it is disturbing.<span style="mso-spacerun: yes;"> </span>If a person feels that he or she is not
comforted with the highly risky investment, he or she may start selling them
and move to the lower risky fund or counter.</span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US"><o:p> </o:p></span><span lang="EN-US">It is simple to
say that, investment is the activity that involved most with the matter of
faith. The fluctuation of economics situation is determined by the environment
scenario. No one knows about the future economics scenario. There are many
external scenarios which will affect the economics fluctuation. Therefore the
investors have to be braved enough in practicing their investment.</span></div>
<br />
<strong>Shari'ah Investment Paradigm</strong><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US"></span> </div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US">Saving refers to
a part of money that is not spent on consumption. Meanwhile investment refers
to the expenditure that is not for the consumption but for the purpose of
capital appreciation, and on creation of a new capital. The idle money cannot
be considered as an investment. This is because the idle money will loose it
purchasing power. Study has proven that the idle money will loose 93% of the
purchasing power over the last 200 years.</span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US">Islam encourages
Muslims to stream their income to the certain areas. The areas are defined by
Islamic priority. If the income or money is kept idle, this money is punished
by Allah SWT through the obligation to pay the zakat. This is because in the
idle money is the right of the eight asnaf (the zakat beneficiaries). </span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US"><o:p> </o:p></span><span lang="EN-US">There are two
types of investment available for an investor. They can invest in physical
assets and financial assets.<span style="mso-spacerun: yes;"> </span>The
physical assets are gold, coins, and other touchable assets. Meanwhile,
financial assets are stocks, bonds, mutual fund and etc. Between these two
assets, financial assets are preferable to invest in. This is the effect of the
liquidity of the investment. The investment in the financial assets is more
liquid differ to the physical assets. An investor can easily pull out his or
hers capital in the financial assets. He or she can sell easily his or hers
stock certificate to the other buyers through the investment agents or stock
brokers.</span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US"><o:p> </o:p></span><span lang="EN-US">What is the
stock? Stocks are the shares of the company that have being apportioned into
the units. The amount of the capital contributed by an investor is determined
by the numbers of units of company’s share. The vote power to the company also
determined by the number of shares. The dividend and the disbursement of the
income also distributed based on the number of units share hold by an investor.</span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US">Meanwhile, the
stocks of the company is divided into two types, one is ordinary and the other
one preference. The difference between two is the preference holders are
entitled for fix receipt over the years, regardless the company makes profit or
loss. Meanwhile the ordinary is determined by the decision of the management of
the company.</span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US"><o:p> </o:p></span><span lang="EN-US">The fix return
receipt from an investment of stock preference is haram according to the Islamic
scholars. This is because of the concept of justice in Islam. In stock
preference, the investor has being promised to receive a certain fix rate
annually. In other words, the future dividends are determined prior to the
determination of the profit of the year. Therefore, Islam views stock
preference as haram since it involves with the uncertainty. The amount receipt
from stock preference is considered as <i style="mso-bidi-font-style: normal;">riba
al-fadhl</i>. As a solution, Muslim may invest in the common stock.</span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US"><o:p> </o:p></span><span lang="EN-US">In other points,
an investor may reduce the liability of the investment through diversification.
Diversification means an investor invests in diverse industries and companies
rather than in the related companies and groups. Let say, if an investor
invests in the crude oil company which the company facing the economic downturn
in that particular year, at the same time he or she also invests in the motor
industries which is used oil as the main power. As the effect of
un-diversification, (not diversified the investment) the investor will stand
facing the high risk problem. However, this kind of problem can be avoided by
practicing the diversification. Diversifying the investment in various
industries may help the investor to reduce the risk. Although he or she will
incur loss in crude oil investment but this loss can be covered by the profit
he or she gains from an investment of the other unrelated industries.</span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US"><o:p><strong> Islamic Fund vs. Mutual Fund</strong></o:p></span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US"><o:p> </o:p></span></div>
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</v:stroke></v:line><span lang="EN-US">Mutual fund is
the company that pools the money to invest in various counters and to buy the
portfolio of the securities. The managements of the company consist of the
investment expert. They have enough knowledge in studying the power of the
company and in planning the prospect of the future earning of the company.</span><br />
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US"><o:p> </o:p></span><span lang="EN-US">The money that
pooled by the company is invested in buying various portfolios securities on
behalf of the whole group. All portfolio securities are eligible for the
conventional mutual fund. However, the scanning must be done for an Islamic
fund. The purpose of the scanning is to check the compliances of the operation
with the sharia’ah. The Syari’ah Supervisory Board of the company does the
scanning.</span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US">In conventional
mutual fund, the investors will share the profits and losses earned from the
investment. The ratio of the profit and loss is based on the amount of shares
they invested. Meanwhile, in Islamic fund investment, the profit and shares is
distributed based on modes of investment agreed by the investors; among the
modes of investment are <i>Ijarah fund, equity fund, commodity fund, murabahah
fund, mixed fund </i>and many more.</span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US"><o:p> </o:p></span><span lang="EN-US"><span style="font-size: small;"><strong>Dynamism in the Best Performance of Fund</strong></span></span></div>
<br />
<div class="MsoBodyText" style="margin: 0cm 0cm 0pt;">
<span lang="EN-US"><o:p> </o:p></span><span lang="EN-US">Gaining the highest revenue from the
investment is the main objective of all investors. They hope that the fund
management company will invest properly their money. Although, the investment
and analysis were doing by the company, the investor also may prepare their own
analysis.</span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US"><o:p> </o:p></span><span lang="EN-US">The academician,
money managers, and thoughtful individual investors have draft some formulas in
selecting the best performing fund. They agreed that the assets should be
measured based on risk and rate of return.</span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US">According to the
study the rate of return is a mix of any change in market value, any dividends,
interests, and other receive from the investment. All of these are expressed in
a percentage gain. After calculating the rate of return, the next is measuring
the level of risk. Based on the same study, the risk could be measured by
several different statistics. One of these statistics is beta coefficient. Beta
coefficient is a ratio of the average performance of a given stock or mutual
fund relative to that of some of market average. As an example, if a beta
coefficient of Company A is 2.0, it would indicate that the mutual fund tends
to move twice as rapidly as general market.</span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US">In viewing to
use this statistics, we have to find the company, which offers the Beta
coefficient equal to zero, or zero risk company. Then we have to know the rate
of return of the invested company. Let say the company’s rate of return is 5%
and the beta is 0. Therefore, an investor may select the other risky fund,
which offers the rate of return higher than 5%. </span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US"><o:p> </o:p></span><span lang="EN-US">The next step is
an investor has to find the second higher risky than zero risk fund. Let say
the beta is 1 and the rate of return is 10%. An investor may invest is such 10%
but he or she has to face one level higher risk in gaining 10% rate of return.
If there is a fund, which offers higher rate of return than 10% but lower risk
(<1), or in other words, the rate of return is more than 10% per unit of
risk is called as outperformed the market and called as under performed if it
is vice versa. </span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<b><span lang="EN-US">Rationality for the Investors in Outsourcing Funds</span></b></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<b><span lang="EN-US"><o:p> </o:p></span></b><span lang="EN-US">There are a number of investors who pass
out totally the job of investment to the investment company. This kind of
investors normally did not care much on the revenue he or she going to gain.
However, there are also investors who are very meticulous in every cent he or
she invests. For these groups of people, they will try to evaluate the
performance of the portfolios by their own. </span></div>
<br />
<div class="MsoBodyText" style="margin: 0cm 0cm 0pt;">
<span lang="EN-US"><o:p> </o:p></span><span lang="EN-US">There are a
number of reasons why the investors try to avoid doing evaluation of the
invested portfolio. Here we are going to discuss a few reasons why an investor
prefers to outsource the evaluation to the outside advisors. Basically there
are four reasons why the investors try to avoid from evaluating the investment
by their own; a desire to avoid fiduciary responsibilities, a lack of time, a
lack of interest, an inability to control emotions, and insufficient knowledge.</span></div>
<ul>
<li><div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US"><o:p> </o:p></span><span lang="EN-US"><em>Fiduciary responsibilities</em></span></div>
</li>
</ul>
<span lang="EN-US"><span style="mso-spacerun: yes;"> </span>There are some people who
have surplus money. They have an intention to invest their money but they do
not have enough time to invest their money by their own. They are the people
who have expertise in managing the money. However, they have other priorities
to do. </span><br />
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt 18pt; text-align: justify;">
<span lang="EN-US">The group consists of a son, daughter, spouse, or other relative who
inherit the wealth of a late family, the individuals on the board of directors
of a school, mosque, or any foundation, and the trustees for retirement plans.
All of them do not have much interest on the activity of investment. Therefore,
the outsourcings of the investment activities are better for them.</span></div>
<ul>
<li><div class="MsoNormal" style="margin: 0cm 0cm 0pt 18pt; text-align: justify;">
<span lang="EN-US"><o:p> </o:p></span><span lang="EN-US"><em>Lack of time</em> </span></div>
</li>
</ul>
<span lang="EN-US">This is the second group of investor who frequently seek outside
assistance. He or she does not have enough time to manage the investment
activities. Although they are the people who may do the excellent job but the
time constraint limit them from doing so. They realize that their time is
better spent focusing upon their business or career.</span><span lang="EN-US"><o:p> </o:p></span><br />
<br />
<ul style="margin-top: 0cm;" type="disc">
<li class="MsoNormal" style="margin: 0cm 0cm 0pt; mso-list: l1 level1 lfo2; tab-stops: list 36.0pt; text-align: justify;"><span lang="EN-US"><em>Lack of interest</em></span></li>
</ul>
<span lang="EN-US">This is the third group of investor who simply lack the interest to
actively manage their own investment. As an example, upon retiring, many people
choose to enjoy their time by traveling, recreation, family, friends, and other
activities. At this time the income become the secondary motive of their life. </span><span lang="EN-US"><o:p> </o:p></span><br />
<br />
<ul style="margin-top: 0cm;" type="disc">
<li class="MsoNormal" style="margin: 0cm 0cm 0pt; mso-list: l1 level1 lfo2; tab-stops: list 36.0pt; text-align: justify;"><span lang="EN-US"><em>Inability to control emotions</em></span></li>
</ul>
<span lang="EN-US">For the investors who fail to control their emotions are most in
need of an outside advisor. This is because an emotion plays the important role
in controlling the activity of a person. The investors may do the wrong doing
if they make the decision based on their emotion. In order to avoid the risk,
the investors may choose the outside advisors as their investment agents.</span><span lang="EN-US"><o:p> </o:p></span><br />
<br />
<ul style="margin-top: 0cm;" type="disc">
<li class="MsoNormal" style="margin: 0cm 0cm 0pt; mso-list: l1 level1 lfo2; tab-stops: list 36.0pt; text-align: justify;"><span lang="EN-US"><em>Insufficient knowledge</em></span></li>
</ul>
<span lang="EN-US">An investor is the outsider who has surplus money but not necessary
he or she must have sufficient knowledge. However in recent situation,
knowledge becomes a main pillar in investment. This is due to the complexity of
the transaction. </span><br />
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt 18pt; text-align: justify;">
<span lang="EN-US">For the insufficient knowledge investors, they may assign the task
to the outside advisors. This is because the outside advisors are the expert in
this field.</span></div>
<span lang="EN-US"><o:p> </o:p></span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US">Final Remarks</span></b></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US"><o:p> </o:p></span><span lang="EN-US">Islamic fund is
an alternative for an Islamic investor. The purpose of this fund is to
encourage Muslims to activate their wealth and avoiding from being idle. As we
all know that Islam will penalize the idle wealth by the obligation of zakat
payment. The most major question is whether the fund is truly complying with
the shari’ah or not. </span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US"><o:p> </o:p></span><span lang="EN-US">In this century,
Muslim held surplus money for the consumption. However their wealth is not
properly invested in Islamic manner. Therefore the existence of Islamic fund is
the best solution for these investors.</span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; text-align: justify;">
<span lang="EN-US">As the addition,
the cooperation between the wealthy and the knowledgeable Muslims may empower
the society. The developed Muslim society is the final result of this
cooperation.</span></div>
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Mohd. Ma'sum Billahhttp://www.blogger.com/profile/14029507777590329011noreply@blogger.com0