“Understanding Takaful for Ulama & Shari’ah Scholars” – IBA

The IBA, Centre for Excellence in Islamic Finance, (IBA CEIF) in collaboration with Pak Qatar Takaful conducted a webinar on: “Understanding Takaful for Ulama & Shari’ah Scholars” by Mufti Muhammad Hassaan Kaleem, Chairman Shari’ah Board, Pak-Qatar Takaful & Member Shari’ah Board, Dubai Islamic Bank. The session was moderated by Mr. Ahmed Ali Siddiqui, Director IBA CEIF and SEVP & Group Head Shari’ah Compliance, Meezan Bank Ltd.

In this session Mufti Muhammad Hassaan Kaleem, (Chairman Shari’ah Board, Pak-Qatar Takaful Member Shari’ah Board Dubai Islamic Bank), mentioned the Shari’ah related issues pertaining to Insurance due to which Insurance is considered as prohibited in Islam. When in the 1970s the concept was discussed by Shari’ah scholars it was pointed out that the concept of mutual insurance is close to Islamic concepts and can be adopted after making certain modifications. Takaful or Islamic alternative of Insurance is done on basis of Modaraba, Wakala or Waqf Wakala.

In Pakistan Waqf Wakala model has been adopted as the concept of Waqf has the legal status of a legal person and is a perpetual entity. Both General Takaful Companies as well as Life Takaful companies (known as family takaful companies in Pakistan) use the Waqf Wakala Model. The Waqf which are thereby created are a form of Cash waqf whereby the principal amounts remain, and their investments are utilized.

A brief Q& A session also took place whereby the queries of the participants were answered.

The recording of the webinar can be accessed at: https://youtu.be/0AyeHi61b5c

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