Maqasid Al Sharia and Takaful Operations: Issues and Challenges in an Emerging Industry

Abstract

This paper, using both doctrinal and qualitative research methods, conducts a study into maqasid al sharia as it relates to takaful and highlights the facets of maqasid that are specifically relevant to takaful in a bid to determine whether same have been achieved in the provision of takaful services. The study however limits itself geographically to the understudied takaful industry in Nigeria and within the study conducts a comparison with the Malaysian takaful industry as a benchmark.The paper therefore critiques takaful in Nigeria against the backdrop of identified maqasid and explores challenges to fulfilling the objectives of maqasid in the industry. The paper concludes with observations on issues ranging from inadequate legislation, education and training of industry personnel and the nature of takaful products provided.

Keywords: Takaful, Islamic Insurance, maqasid al shari’ah