Some
people claim that the operation of takaful today does not follow the principle
of takaful whereby takaful seems to be a medium for investment. The underlying
principle of takaful is social welfare. What is your opinion?
It is a requirement by law that all takaful operators
must establish a Shariah Committee (SC) comprising of several Shariah experts
to oversee and confirm that all business operational of takaful is within
acceptable Shariah principles. In
addition, Bank Negara Malaysia had also established a Shariah council known as Shariah
Advisory Council (SAC) which oversee the entire Islamic finance industry (IFI) in
terms of their Shariah compliant. In
other words, all SCs within IFI are bound under the directive of the SAC. Thus, takaful operators are confined under a comprehensive
Shariah regulatory framework system where the primary objective is to ensure
that the possibility of non-Shariah element is totally eliminated. Comparatively, there is no such system exist
within the conventional insurance industry.
As such, there is unlikely that the takaful operators do not follow the Shariah
principles particularly the principles of takaful. The law further prescribes that in the event
of any discovery of non-Shariah compliant, the management including the Board and
SC are required to take necessary steps to rectify the situation within the
shortest and reasonable period possible.
Most takaful products mainly family takaful contains
the element of investment as one of the features. Family takaful products usually offer
protection as well as savings therefore the element of investment is crucial in
the product features. On the other hand,
all general takaful products do not contain any investment element as the
feature of the products is solely for protection. Thus, investment is one of the key features
offered by family takaful products where all investment activities must comply
with the necessary Shariah principles particularly the element of riba.
