Why is it important that both Muslims and non-Muslims use Takaful? Essay

Both Muslims and non-Muslims can use Takaful. It is noticeable importance. Takaful can be marketed to Muslims and non-Muslims as an exact athical structure. The economic decline is speedy becoming a worldwide economic affliction. In 1930, this economic crisis is the worst in the United States. This catastrophe creates opportunities for the insurance industry. In middle of the global economic catastrophe, takaful is appointed to continue applying on upward business development. Even facing economic catastrophe, the low market get through physically in the Shari'ah insurance or known as takaful opportunity which creates an attractive opportunity to continue to prosper (Ahmad, 2009). In Islamic principle of investment is tailgated by risk. Takaful is to the modern concept of insurance in Islam where the insurance is free from interest and gambling (Saleh, 1986). Prevalent is the instrument of ethical nature in takaful but the insurance in the conventional form lacks this characteristic. The takaful ethical nature will be srutinized in depth. Takaful cover both Muslims and non-Muslims globally. The principle of takaful is sharing risk or each other's burden and use the fairness concept. This will amplify protection and preservation of the community to the less fortunate members.
CONVENTIONAL INSURANCE
An agreement where an insurer undertakes a policyholder of money as an allowance of a specified event on the occurrence is known as conventional insurance. The specified event must have some element of uncertainty about it. Modern conventional insurance contracts are rejected in Islam where that insurance has certain elements which directly contradict the rules and laws of Shari'ah. They are including gharar known as ambiguity or uncertainty, al-maisir known as gambling and riba known as "interest", where there is making money on money. Takaful is restricted to an interest-free system while almost conventional insurers invest in interest-bearing assets. A takaful entity must guard or ensure the policyholder and shareholder funds are invested in assets and not contradict with the rules of Shari'ah such as riba. The basic principle of the Islamic economic is an impartial distribution of wealth and a system where people are encouraged to donate or contribute the money for mutual help for needy. The Islamic economic system affrays the agglomeration of wealth. The Islamic rule of possession gained through someone's death or we call it as inheritance supports for the fluctuate and distribution of wealth. It classifies the estate of the deceased to the large range of beneficiaries, where not enhance a heir to the exclusion of all others. The applicant in a family takaful scheme is a trustee and the policy needs to distribute to all the heirs. Financial responsibilities are joint to help each other by takaful scheme where provides mutual financial assistance and aid to the members of the takaful scheme. It applied the concept of sharing of an individual's loss. Takaful is the implementation as an alternative to the conventional insurance system. This is an Islamic way of mutual aid and assistance to deal with uncertainties of life where it from conventional insurance.