The Religious Perspective of Takaful as Ethical Insurance


  • Nawal Kasim
  • Sheila Nu Nu Htay
  • Syed Ahmed Salman


Ethics is crucial in every part of human life irrespective of religion, race, place, and time. Every religion teaches its followers to be good and enjoin virtue. Ethical conduct is a mission central to any religion and ethical behaviour is highly demanded in any part of the world. As a result of the global financial crisis, regulators and related authorities are realising the importance of ethics as a defensive measure to avoid the recurrence of financial crises. Religions such as Islam, Christianity, Judaism Hinduism, Sikhism, and Buddhism condemn the practice and involvement in interest, gambling, and uncertainty as they are tools of injustice and create an atmosphere of inequality. Unfortunately, insurance involves the elements of interest, gambling, and uncertainty. Human beings seek an ethical and just business environment where they can finance, participate, and invest their capital without being involved in prohibited activities and elements. The objectives of this paper are to provide the reasons behind the prohibition of insurance not only from Islam but also from other religious perspectives and to show that the suitability of Takaful as an ethical insurance in all aspects of religious teachings. Takaful is a cooperative, mutual, and solidarity product that can be used as a risk management tool. The main advantage of Takaful over conventional insurance is that it is free from religiously forbidden elements and promotes a spirit of caring and sharing in the society. This knowledge should be disseminated to ensure that Takaful becomes the universal ethical insurance product.

DOI: 10.5901/mjss.2016.v7n4p96


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How to Cite

The Religious Perspective of Takaful as Ethical Insurance. (2016). Mediterranean Journal of Social Sciences, 7(4), 96.