FatwaPerakTransactions & Finance
Mohon penjelasan penuh berhubung isu takaful dan insurans
What is the difference between takaful and conventional insurance, and what is the Islamic ruling on each?
Short answer
Conventional insurance is prohibited because it is mixed with riba.
A reference, not a fatwa. First sentence of the summary below — read the original fatwa and consult your state authority before acting.
- Authority
- Perak State Mufti Department
- Status
- Opinion (irsyad)
- Series
- Soal Jawab
- Topic
- Transactions & Finance
No evidence of gazettement in the source — this is not a gazetted fatwa.
Summary
Conventional insurance is prohibited because it is mixed with riba. In 1979 the National Fatwa Committee ruled that life insurance as run by most insurance companies is a defective transaction, as its contract contains gharar (uncertainty), gambling elements and riba. Takaful is regarded as the replacement for conventional insurance because it is founded on the practice of tabarru', and a 2008 muzakarah decided that its concept and implementation in Malaysia conform to Islamic law.
Written in our own words from the original fatwa — check the source before acting on it.
Muzakarah Jawatankuasa Fatwa Majlis Kebangsaan Bagi Hal Ehwal Ugama Islam Malaysia kali ke 80 yang bersidang pada 1 – 3 Februari 2008 telah memutuskan bahawa konsep dan pelaksanaan takaful di Malaysia adalah bertepatan dengan Syariat Islam.
Read the full fatwa on the Perak website (new tab)
How to cite
Cite the original fatwa and its authority. Rujuk Fatwa is only where you found it.
Perak State Mufti Department. “Mohon penjelasan penuh berhubung isu takaful dan insurans”, date not stated. https://mufti.perak.gov.my/component/content/article/soal-jawab?catid=2#discounts-6. Found via Rujuk Fatwa: https://rujukfatwa.com/en/fatwa/difference-and-ruling-takaful-insurance/