Definition The word “Takaful” is derived from the Arabic verb “Kafala” which simply means to jointly guarantee. Therefore the pact between at least two parties agreeing to jointly guarantee one another in the event of a loss, as a consequent of being afflicted by a calamity defines the term “Takaful”. Technically Takaful defines a mutual; guarantee or assurance based on the principle of al-aqad (contract) provide by group of people living in the same society, against a defined risk or catastrophe befalling life, property or any form of valuable asset. According to Islamic Financial Services Act 2013 Takaful means an arrangement based on the mutual assistance under which Takaful participants agree to contribute to a common fund providing for …show more content…
The same practice can be seen in the practice of al-aqilah under Arab tribal custom before the advent of Islam where a killer is required to pay blood-money (diyaf) as compensation to the family of the slain. The doctrine was approved by Prophet Muhammad (saw) and subsequently made mandatory during the period of the second caliph which is Saidina Umar al-Khatab (ra). Takaful mostly cover up of these basic elements which in basis in co-operation, basis of responsibity and basis of mutual protection. Elaboration for basis in co-operation in Takaful is based on the concept of ta’awun meaning mutual assistance. Participants of the Takaful scheme mutually agree to assist each other financially in case of certain defined needs in the Takaful contract by contributing to a common fund. The concept is based on Allah (SWT) command in the verse (al-Maidah: 2) meaning that “..Cooperate ye one another in righteousness and piety but help ye not one another in sin and rancor”. In the following hadith , Prophet Muhammad (saw) said “Allah will always help His servant as long as he helps others” (reported by Ahmad and Abu
According to the article, Altruism and helping behavior, it is common for people to help others. Altruism is defined as “the desire to help another person even if it doesn’t benefit the helper” (Altruism and Helping Behavior. Print.). Helping behavior is “any act that is intended to benefit another person”
While the idea of thinking of and helping others sounds “nice” it is just candidly that there is no amelioration through this. Altruism is a detriment to the mind allowing it to be clouded by the opinions of others and allowing people to sacrifice heart in themselves. “He knew, for the moment, that he felt affection for Roark; an affection that held pain, astonishment and helplessness” (Rand 114). Peter Keating displays how he looks to others for inspiration rather than himself like Roark does. Keating is insecure about his abilities and his covetousness for the regard of others makes him a slave to their genius, while contributing none of his own. People use magnanimity as a way to escape their own problems by helping others or expecting a favor in return for their time spent helping. Psychiatrist, philosopher, and writer who lives and teaches in Oxford, England Neel Burton M.D. says: “Altruism is an ego defence, a form of sublimation in which a person copes with his problems and anxieties by stepping outside himself and helping others” (Burton). Altruism is a way for people to run away from their griefs by focusing on the distress of others. However, this leads to concentrating so much on others a person can not refine themselves. Egoism should be glorified, it allows for people to be able to improve themselves and build their
...t altruism cannot exists and if a reciprocal altruism appears it will later on change into egoism or it will be overtaken by the group’s leader, and his altruism or egoism.
There are two specific “demands” that Gouldner writes about reciprocity and how it should be in its universal form. These two demands are “people should help those who have helped them and people should not injure those who have helped them.” The norm of reciprocity is viewed as something that is supposed to be in everyone’s values and hope that everyone is taking this into consideration when they are going through their life. But people have different views and see their own form of reciprocity; they have been brought up to think a certain way. They have seen how family members, friends and acquaintances treat reciprocity, so they take that view and that is how they also do it when they grow
The usual procedure for a party seeking insurance is to first complete a proposal form and submit it to the insurers. Where the proposal form is rejected that is the end of the matter and there is no contract. The insurer is not ...
This is because of a natural human function, which is the fact that if you do something that is beneficial to someone, they will most likely return the favor. This may not seem like a large part of group survival, but this is the main reason why groups can work together and function in a disaster situation. This is known as the Human Return Factor. Without this factor, a person in a group would perform a job, such as finding water, and give some to the rest of the group. In return, the other group members would each perform their different jobs, such as finding food, and give some to that group member who had earlier found the water. Imagine trying to survive without this key characteristic. In the same scenario, a group member could have found the water, given some to the rest of the group, but receive nothing in return. Therefore, he has just given away one of the most essential things needed to survive, water, and gotten nothing in return. This factor is explained more by author Richard F. Taflinger, in the article, The Social Basis of Human Behavior. He writes, “We just believe that helping will result in help when needed. Thus, by helping others, any others, we help ourselves.” This displays how humans can remember favors, and how that person will eventually repay that debt when it is needed. Another example of this return factor in 102 Minutes is when ‘Brian Clark rescues Stanley Praimnath, and later Praimnath helps Clark escape’ (Dwyer and Flynn). An additional text that shows this is The Ultimate Survival Manual by Richard Johnson, when he says ‘surviving in a group is much more beneficial and efficient to everyone in that group’ (Johnson 135). Overall, the reason group survival works is because of this factor, and how humans will naturally exchange favors with each
Extensive psychological study over many years have found various reasons as to why we commit pro-social behaviour, which would suggest that we do have ulterior motives that we may or may not be aware of in different situations. However, other evidence has found that in some situations we help others to relieve the distress we feel from the situation, as shown by the negative-state relief model, which is a concept developed by Schaller and Cialdini (1988). They suggested that egoistic motives induce helpful behaviour in bad circumstances because it reduces the distress we feel from witnessing. Others sug...
The primary objective of this article is to lay down the hypothetical framework, which discusses the Profit and loss sharing based on Islamic principles with the investment of interest free partnership. According to the author, Islamic financing is based on the risk that is beard by the both parties. On the time of investment, whether agents have shortage or surplus of resources, they have to share the returns and risk on the investment they are making. General concepts of Islamic financing instruments like Mudarabah, Musharakah, Murabahah, Al-Salam and Al-Ijara are based on the mechanism of profit and loss sharing (PLS). All of these above mentioned partnerships are based on the agreed upon the subsequent loss or th...
Imagine a world where people treated others as they would like to be treated. Surely a world with no conflict comes to mind. Now think of the way that the world actually is and a big difference will be noticed. The first thing that might be noticed, of course, is that it seems today that there is nothing but conflict in this world. This is because of things such as greed, but that is besides the point. Remember the saying in the first sentence? This idea comes from something called The Golden Rule. The Golden Rule, which is “do unto others as you would have them do unto you” is a rule that evidently is not followed. This rule basically means that you should treat others as you wish to be treated. It is not followed, partly because of all the
This “relationship” previously stated is the basis for the second key theme of Catholic Social Teaching. “The Catholic social encyclicals teach that to be human is to experience not only rights but also obligations to others” (Massaro, p.84). A strong advocate for solidarity, Pope John Paul II stated “To be human is to be a social being, one whose very life is and should be bound up with those in close proximity and even distant strangers (Massaro, p.84). Solidarity exists when individuals are contributing towards a common good, which is simply a goal in life that is held above the private benefits of those individuals. Catholic Social Teaching states that when the individuals of today make sacrifices for the common good of a ...
ensure that the investment of funds pertaining to any scheme is not contrary to the provisions of these
a) According to the jurists , mudharabah is a contract between two parties ( persons) each bear , one of the parties to submit their wealth to other parties for trade with a predetermined portion of the profits , such as a half or a third of the conditions specified .
I am a Greek Orthodox Christian who grew up close to the church. The two morals which have truly helped shape me into the person I am today are to give my community and to help those in need. I feel those morals come to me naturally, similar to the French during the Second World War. If everyone were to help and give back to the community, there would be this connectives which would allow people to bond and almost become one. People during the time period we are living in do not take the time to get to know each other. The ideal plan would be able to all connect together, not just within the communities, but with a community and another community. There would be a synergy which would allow the world to benefit greatly conquering mountainous tasks which one nation would not be able to accomplish. Aiding
Our effort in trying to help somebody should be beneficial to that one; otherwise, we are just doing for ourselves a
There are some pillars of the hibah. The hibah contract will not exist unless he meets the following principles and conditions: