Takaful and Re_Takaful: Principles and Operations
| Title: | Takaful and Re_Takaful: Principles and Operations |
|---|---|
| Code: | MFP 226 |
| Credits: | 15 |
| Tutor: | Iqbal Asaria |
| Description: | This module aims to outline the principles of Takaful (Islamic Insurance) and Re-Takaful (Islamic Re-Insurance) and explain how they are applied in practice. The scope and significance of Takaful is situated within the wider Islamic Finance provision. The affinity between mutual/co-operative insurance and Takaful is explored and contrasted with the practice of conventional insurance. The emerging practice of Takaful and Re-Takaful in a number of juristictions will be studied to underpin the theorrtical understanding of the subject. |
| Status: | Optional |
| Prerequisites: | None |
| Restrictions: | None |
| Content Summary: | 1. Principles and practice of Insurance and Re-Insurance 2. Co-Operative and Mutual Insurance provision 3. Takaful as a key component of Is;amic financial provision 4. Principles of Takaful/Re-Takaful and Takaful models 5. The enhanced role of the Shariah Scholars in Takaful/Re-Takaful provision 6. Regulatory issues relating to Takaful/Re-Takaful operations 7. The global Takaful market with special emphasis on Takaful operations in Malaysia and GCC countries 8. Micro Takaful provision to complement microfinance 9. Asset management for Takaful/Re-Takaful 10. Challenges facingTakaful/Re-Takaful operators |
| Learning Outcomes: | Knowledge and Understanding
On successful completion of this module students should be able to: l. Appreciate the scope, significance, methodology and major structural themes of Islamic Insurance and Re-Insurance 2. Appreciate the difference between Islamic and conventional insurance 3. Understand the affinity between Takaful/Te-Takaful and Mutual and/or Co-Operative Insurance provision 4. Critically examine the principles and rational for dealing with underwriting surplus in Takaful/Re-Takaful operations 5. Appreciate the scope of the Takaful/Re-Takaful market and the challenges faced in tapping into to it 6. Understand the key role of Takaful/Re-Takaful in the provision of a comprehensive Islamic financial product site 7. Appreciate the enhanced role of the Shariah Scholar in resolving shareholder/contributor conflicts of interest in Takaful/Re-Takaful operations
Skills By the end of this module students should have developed skills in: 1. Ways of implementing Islamic moral values in terms of the provision of Takaful/Re-Takaful (Islamic Insurance/Re-Insurance) 2. Approaches to working within the established regulatory structures to provide Islamic financial products 3. Understanding the affinities of insurance/re-insurance provision in Islamic, ethical and mutual models 4. Understanding approaches towards affinity and shared interest community based provision of socially useful products 5. Appreciating the importance of efficient Takaful provision in realising socio-economic goals of Muslim societies |
| Delivery: | Each student should participate in 150 hours of effort, including lecturers (6 hours), seminars (6 hours), tutorials (6 hours), plus personal guided study (132 hours) |
| Assessment: | Examination 2.5 hours, (standard , closed) 30% |
| Indicative Resources: | Dr. Engku Rabiah Adawiah Engku Ali and Hassan Scott P. Ordierno, (2008), CERT Publications, Malaysia. Journals/Articles |
