Takaful or Islamic Insurance: Part A

Conceptual Explanation

The concept of takaful or Islamic insurance is to encourage individuals to help one another. Thus, the concept manifests the principle of mutual help or indemnity. Interestingly, those who enter into takaful contract are actually considered as an insurer and insured person at the same time. Not only that they contribute some amount of money to help another person involved in the contract, but at the same time they are also entitled to receive assistance from those involved in the contract.

Historical Explanation
There were two situations which indicate that takaful or Islamic insurance was actually practised by the previous Muslim communities. The first situation concerned the practice of ‘aqilah or blood money and qasamah or collective blood money. For instance, when a member of Family A committed a murder against a member of Family B, the murderer could not be found, normally Family A would pay Family B qasamah. The second situation concerned the practice of the second righteous caliph of Islam, ‘Umar al-Khattab (r.a). During his caliphate, there were dawawin or agencies such as post office, military, and merchant. For instance, in military each officer was required to make contribution every month through deduction of monthly salaries in order to help those who were injured or dead in battlefields.

Fatwa or Religious Decree
There is fatwa or religious decree indicating that conventional insurance is prohibited under the Islamic law. For instance, conventional life insurance was prohibited under the Islamic law through a fatwa issued in 1972 based on a reason that the insurance embraces the element of gharar or uncertainty which generally invalidates a contract.

Legal Authority

Legal authorities for takaful or Islamic insurance are based on evidence from the Holy Qur’an through al-Ma’idah, verse 2, the practice of the second righteous caliph of Islam, ‘Umar al-Khattab (r.a), and various fatwa or religious decree.

Basic Features of Islamic Banking

A review of Islamic banking in Malaysia reveals specific features which are different to conventional banking. The first feature is interest free. Interest (al-riba) is totally prohibited under the Islamic law. Nevertheless, the Islamic law recognises contract of sale (al-bay’). Thus, the Holy Qur’an for instance clearly recognises contract of sale and prohibit interest (wa ahal Allah al-bay’ wa harram al-riba). This is different to conventional banking which recognises interest for instance in money-lending. The second feature is free of uncertainty. Uncertainty (al-gharar) in contract is prohibited under the Islamic law based on evidence from the Holy Qur’an and the Sunnah. For instance, one of the Sunnah indicates that the Prophet Muhammad (s.a.w) prohibited contract of sale of fishes in the sea without firstly ascertaining the amount due to uncertainty. Thus, such contract may involve negative elements such as fraud, misrepresentation, and undue influence. The third feature is profit and loss sharing. Profit and loss sharing can be proved by referring to the management of Islamic banking. The management provides products which involve profit and loss sharing such as al-wadi’ah, al-mudharabah, and al-bay’ al-muajjal. For instance, in al-mudharabah it involves profit and loss sharing between the investor (rab al-mal) and the manager (al-mudharib). The fourth feature is fixed in payment. For instance, in one of the Islamic banking products known as deferred payment sale (al-bay’ bi thaman ajil), the profit margin must be fixed unless there are exceptional circumstances allowed under the Islamic law. Nevertheless, under conventional banking the margin is not fixed and changeable based on current worldwide economic turbulent. The fifth feature is free of lender borrower relationship as adopted by conventional banking. This is to ensure that Islamic banking is interest free. Thus, a new relationship may be created as allowed under the Islamic law such as investor manager relationship. In short, the above features are changeable and can be varied to suit times and changes because the Islamic Banking Act allows such change and variety. Nevertheless, features under conventional banking are fixed and cannot be changed because the Banking and Financial Institution Act prohibits such change and variety.

Indahnya Menjadi Sufi

JALAN SUFI

Sufi menghilang daripada dirinya dan hadir bersama Tuhan
Hujwiri

Sesuatu yang kita tunjukkan tidak dapat ditemukan dengan keinginan, tetapi hanya para pencari yang menemukannya
Imam Abu Yazid al-Bustami r.a

Sufi berbuat sesuai dengan apa pun yang paling tepat pada waktu itu
Amr Ibn Uthman al-Makki

Seorang pencari pergi memohon panduan pada seorang guru di jalan sufi. Guru itu menyarankan: Jika kamu tidak pernah menempuh jalan cinta, pergilah dan jatuh cintalah; lalu datanglah kembali dan lihatlah kami
Jami'

Jika kata-kata keluar dari hati, ia akan masuk ke hati, tetapi jika ia keluar dari mulut, ia tidak akan melampaui telinga
Al-Suhrawardi

Adalah keperluan untuk mempunyai seorang pemandu dalam perjalana spiritual. Pilihlah seorang guru, sebab tanpa orang itu perjalanan ini penuh dengan cubaan, ketakutan, dan bahaya. Tanpa pengawal, kamu akan hilang di tengah jalan yang telah anda tempuh. Jangan pergi sendirian di jalan itu.
Maulana Rumi

HIDUP DI DUNIA

Hidup Sehari-hari

Lihatlah apa yang engkau kerjakan,
Sebab itulah nilai dirimu,
Buruh sejati tidak bererti puasa dan bukan juga solat.
Al-Ansari

Jiwa harus berperhatian dengan jasad, seperti seorang yang menunaikan ibadah haji di Mekah memerhatikan untanya; tetapi jika seorang yang menunaikan ibadah haji tadi menghabiskan waktunya untuk memberi makan dan menghiasi untanya, para kafilah akan meninggalkannya di belakang, dan dia akan mati di kawasan gurun tersebut.
Al-Ghazali

Seseorang mungkin tidur, tetapi dia harus terjaga dengan suatu cara yang benar. Suatu kebutuhan adalah bahawa ketika dia terjaga, dia juga akan mempunyai cara untuk mendapat manfaat daripada keterjagaannya.
Idris Shah

Seorang raja yang tidak adil bertanya kepada seorang yang taat tentang jenis ibadah apa yang paling baik. Dia menjawab: Untuk anda yang paling baik adalah tidur setengah hari sehingga tiada merugikan atau melukai rakyat meskipun untuk sesaat
Sa'di

Semoga kita diberi izin Tuhan dan ilmu-Nya untuk memahami kata-kata para sufi di atas.

Amin.

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Risalah-risalah Sufistik Jalaluddin Rumi 1

Bab Satu: Tuhan Bekerja Dengan Cara Yang Misteri

Maulana memulakan bicara beliau dengan mengungkapkan sabda Nabi Muhammad s.a.w yang mengingatkan kita bahawa seburuk-buruk ulamak ialah mereka yang mengunjungi penguasa dan sebaik-baik penguasa ialah mereka yang mengunjungi ulamak. Maulana berpendapat bahawa makna sebenar sabda Nabi s.a.w ialah bahawa seburuk-buruk ulamak ialah mereka yang menerima sokongan daripada penguasa. Dia melakukan tugasnya sebagai ulamak hanya kerana ingin memperolehi kesenangan daripada penguasa. Hadiah serta pemberian kesenangan daripada penguasa dijadikan tujuan utama dan pencarian ilmunya. Boleh dikatakan tujuannya ialah kerana kesenangan dirinya sendiri. Maulana berpendapat bahawa ulamak yang hakiki ialah mereka apabila mengenakan jubah keilmuannya, dia melakukan bukan kerana penguasa tetapi kerana Tuhan. Selagi mana dia berada di atas kebenaran, maka semua orang akan sentiasa menghormatinya. Dia merupakan cahaya kebaikan yang memantul kepada masyarakat disekelilingnya. Ketika ini dia merupakan tuan rumah yang sentiasa menerima tetamu setiap masa. Dia bebas dan tidak terikat kepada penguasa. Bahkan penguasa akan sentiasa menjadi tamunya. Maulana seterusnya berpendapat bahawa Tuhan mencipta dengan cara yang misteri. Sesuatu perkara mungkin kelihatan baik jika dilihat pada zahirnya tetapi mungkin pada bathinnya terdapat kejahatan. Beliau mengingatkan agar jangan sampai kita terpedaya oleh rasa kebanggaan diri. Kebanggaan yang selalu menganggap bahawa kita telah menyerap suatu gagasan yang baik atau telah melakukan amal dengan baik. Jadi sejernih dan sebaik manapun penilaian kita, betapa indah nampaknya, tidak akan lebih baik daripada penilaiannya, dia berbicara sebagaimana yang dia lakukan. Beliau menyarankan agar jangan selalu menyandarkan penilaian pada setiap fikiran dan pendapat kita, tetapi berendahlah hati kita di depan Tuhan dan takutlah kepada-Nya.

Evidence on the Origin of Islamic Banking and Finance

1. Evidence in the Modern Era: Earliest evidence manifesting the recognition of Islamic banking and finance in the modern era is the existence of Islamic banking and finance in Dubai and Islamic takaful in Sudan in 1979. Thus, now there are many countries practising Islamic banking and finance such as Malaysia.
2. Evidence in the Previous Era: The previous Islamic civilisation did have Islamic banking and finance activities but there was no existence of banks. The civilisation could not also enhance itself if there was no Islamic banking and finance practised by the people back then. Thus, money was indeed important for management of various facilities such as agriculture. Examples of Islamic banking and finance instruments articulated by orientalists such as Abraham Udovitch existed in the era were balusah (letter of credit) and suftajah (bill of exchange) which were found to be practised during the first century of hijrah. Another example of the instruments is cheque which can be extracted from Islamic law literature such as al-Muwatta' of Imam Malik. Some orientalists such as Joseph Schacht further indicates that Islamic law was the first legal system to introduce cheque.
3. Conclusion: Islamic banking and finance is also recognised by some orientalists as an established practice. Thus, evidence on its origin is very clear.

Civil Family Law: Child As The Main Focus Of Attention

Assalamualaikum and hello. The modern family law now concentrates on upholding the right, interest, and welfare of the child in the family. Priorities are given to the right, interest, and welfare of the child without neglecting those of the parents and others. The focus on the right, interest, and welfare of the child actually began in the early 1900’s due to some situations such as the belief of the society in the right, interest, and welfare of the child, the increase of divorce rates, of children birth outside marriage, and also of child abuse. Eventually, the family law legislations in many countries were amended in order to embrace the new orientation of upholding the right, interest, and welfare of the child without neglecting those of the parents and others. For instance, in England the law uses the terms parental responsibility interpreted through the welfare of the child principle in which the child has the right to have love and care from the parents. The welfare of the child principle is also currently adopted by the law in Malaysia. In Australia, the law also uses the terms parental responsibility as in England but interpreted through the best interests of the child consideration. In short, the law and the society unanimously agree for the first time that the child deserves his right, interest, and welfare. Wassalam and thank you.

A Question For Young Men And Women: Is Marriage A Burden?

Divorce is increasing from time to time in Malaysia. Generally the increase of divorce rates occur among young husbands and wives. For instance, do not be surprise to see a young husband and wife file a divorce petition before the court of law after a few months of marriage. The situation goes beyond the boundary of religion. Those who love and support marriage and the family institution in Malaysia question as to reasons behind the situation. Why marriage fails for some young individuals in Malaysia? Are they not well educated enough on marriage and the family institution in Malaysia? Or they are more concerned with other matters ignoring the importance of protecting their marriage and family? Some in Malaysia may suggest that marriage and divorce are private matters. Thus, young husbands and wives have rights to marriage and divorce. If the husbands and wives think that divorce is the best solution, they should be allowed to do so. Nevertheless, some in Malaysia may also argue that marriage and divorce also affect others as well in particular the children. Thus, negative divorce may have negative effects on the children. That is why some young men and women seem to have doubts on marriage and elect to live as singles. Thus, they are afraid that negativity surrounding marriage may occur and affect them....