The objective of the paper is to set parameters for the application of wadi'ah concept in family takaful which is the alternative of guaranteed benefits (non-participating benefits) of life insurance for family takaful. The paper uses analytical and evaluative approach to set parameters to ensure Shari'ah compliancy of the product and therefore, classical and modern Islamic jurisprudence literatures has been reviewed. The wadi'ah-based family takaful product allows various forms of guaranteed benefits (non-participating benefits) to be offered to participants in a manner similar to their conventional counterparts. However, there are some guidelines that should be followed. Every contract should be executed separately to avoid Shari'ah prohibition. Different types of funds need to be separated as well. Takaful Operators (TOs) can provide guaranteed cash surrender benefits only from the Participants' Wadi'ah Fund (PWF). Finally, Takaful Operators (TOs) should be transparent in the dripping process and charges. Takaful Operators (TOs) should be transparent in taking charges for managing wadi'ah funds, sharing investment profit ratio under mudarabah contract and sharing surplus from the tabarru' fund. The study would serve the needs of the takaful industry, particularly family takaful, in order for them to avoid Shari'ah compliance risk. Key words: Takaful, wadi'ah, tabarru', Participants' Wadi'ah Fund, Shari'ah Parameter
Shari'ah parameters for the application of Wadi'ah concept in traditional family takaful products
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Tanggal Publikasi: 1 Okt 2012
Dusuki, Asyraf Wajdi, et al. "Shari'ah parameters for the application of wadi'ah concept in traditional family takaful products." Advances in Natural and Applied Sciences, vol. 6, no. 8, Oct. 2012, pp. 1414+. Gale Academic OneFile, link.gale.com/apps/doc/A324761117/AONE?u=anon~4109b0f1&sid=googleScholar&xid=604cc4f5. Accessed 2 Aug. 2023.