An Introduction to Islamic Finance: Theory and Practice

224 AN INTRODUCTION TO ISLAMIC FINANCE

element of gambling. While Shari’ah scholars are still divided on the

issue, growing numbers are turning in favor of life insurance. Takaful

companies need to educate their potential customers well with regard

to Shari’ah - related issues, taking care not to deliver this education in a

way that can be perceived as marketing or advertising. Similarly, they

need to educate conventional customers about the benefi ts of takaful to

attract their business.

ENDNOTES

1. Aizenman (2008).


2. Gassner (2009).


3. Dar and Presley (2000).


4. See Iqbal and Karim (2010) and Askari et al. (2008).


5. See Obaidullah and Abdul Latiff (2008).


6. Ernst & Young (2010).


7. PriceWaterhouseCoopers (2008).


8. For instance, under the Malaysian Takaful Act 1984, the legal defi nition of a
   takaful scheme is based on the concept of solidarity and brotherhood, which
   provides mutual fi nancial aid and assistance to the participants in cases of need,
   whereby the participants agree mutually to contribute for that purpose.


9. Ernst &Young (2009).