A Critical Analysis on the Contractual Framework of Islamic Insurance (Takaful) Safinar Salleh Department of Law, School of Law and Social Sciences Glasgow Caledonian University Supervised by: Dr Mahdi Zahraa Dr Muhammad Nurullah

Takaful Conventional insurance

Sharing of losses among participants

Transfer of losses to an insurance company

Contributions belong to the participants collectively

Premiums belong to the company

Indemnification is provided by policyholders themselves

Indemnification is provided by an insurance company

A takaful company acts as an administrator of the takaful fund

An insurance company is liable to pay compensation from its assets.

Assets of the takaful fund is invested in Shari’ah compliant instruments

Investment is not subjected to any Shari’ah requirements