Evolution of Takāful insurance

Generally, insurance as a concept is an alien economic tool in Islamic jurisprudence. Prior to theHanafī jurist Ibn CAbidīn (died: 1252 A.H), there was any scholastic discussion on insurance andits related terminologies even though Kafalah (guaranty) as a contractual transaction isnoticeably present in Islamic transactional law. Ibnu cAbidīn was the pioneer jurist to haveexercised his legal verdict on the case and adjudged insurance impermissible (Salūs, 1986, p,164). Until after a century, the legal status quo of insurance remains as adjudged by this scholaruntil it was later opened to a scholastic discussion when some jurist seemed unsupportive to theformal judgment. In May 1965, the Islamic research center held in Cairo tabled for juristicdiscussion- among others- the legality of the prevailing commercial and conventional insurance.The conference with its majority participants ruled the commercial insurance impermissible anddevised therein another Sharī’ah compliant module that is latterly known as a Takāful orTa’awun insurance. (Salūs, 1986, p, 164). Researches later continued rereading and reappraisingthe commercial insurance and the majority of the jurists still opined its impermissibility until 1972 that a group of scholars attended a conference held in the Libya University discussingamong other topics the commercial insurance in Islamic jurisprudence. Even though the majorityof the attendees unanimously agreed to utilize other means of commercial insurance except liveinsurance, they still believed an alternative insurance that is Sharī’ah compliant be devised. until1976 that an international conference on Islamic economics was held in Makkah which had inattendance more than two hundred scholars, professors and experts of Islamic economics andfinance who agreed to the fact that commercial insurance does not represent the Islamic principleof solidarity and mutual association and that a committee of experts be charged to devise out aSharī’ah compliant module of insurance that is devoid of interest and speculation and will at thesame time connote the Islamic recipe that will substitute the conventional commercial insurance(Salūs, 1986,164). From this synoptic overview, it is deduced that the practical evolution of theTakāful insurance could be linked to the early seventies of the twentieth century having its mainstart point in the gulf countries such as Saudi Arabia, Bahrain etcetera and spreading acrossAsian countries where Malaysia assumes both the pioneering and the leading position followedby Indonesia Pakistan etcetera. The spread and entrenchment later got to Egypt ,MaghrebAlgeria and other countries in the northern zones of Africa not leaving behind- even with slowwheeling- countries in the sub-Saharan zones such as Kenya and Nigeria. According to aresearch (“Emergence and evolution,” 2017). Takāful insurance is currently operational in morethan 75 countries. The research also affirmed that starting from 2006; Takāful insurance has beengathering momentum spreading to other areas in Africa and even in Europe where a bigcommunity of Muslim people has settled down.