THE UNDESIRABLE ISSUES IN THE INSURANCE PRACTICES CAN BE RESOLVED BY INTRODUCING TAKĀFUL IN INDIA: THE VIEWS OF ISLAMIC FINANCE EXPERTS
Takāful (Islamic insurance) has been introduced as an alternative to conventional insurance in order to avoid interest, uncertainty, gambling and investment in Sharīʽah non-complaint elements. These elements are prohibited in Sharīʽah (Islamic law) based on their unethicality. Takāful, on the other hand, is based on the concepts of solidarity, brotherhood, and mutual cooperation. It is an ethical product not meant for any religious group or community. Participating in takāful means helping oneself and other fellow human beings in case of financial loss due to misfortune. Participation in takāful can promote a caring and sharing community. The objective of this research is to explore the perceptions of Islamic finance experts towards the issues of unethicality inherent to insurance in India. A combination of convenient sampling and purposive sampling method is employed for choosing the Islamic finance experts as the interviewees. Interview method is used to assemble the major findings for this research. The total of eighteen interviews have been coordinated and all of them are male. The interview results from the Islamic finance experts reveal that the current insurance practices involve Sharīʽah non-compliant activities and unethical business practices, mainly due to interest, uncertainty, gambling and investment in Sharīʽah non-complaint business activities. Based on their opinion, the undesirable issues can be resolved if takāful is offered and the operators abide by the Sharīʽah requirements. By cause of its great advantages, Takāful is not solely for the Muslims. In addition to offering the guarantee and security that conventional insurance does, takāful contains an added feature particularly the fact that takāful is free from uncertainty, usury, and gambling. This research focuses on how unethical issues in insurance can be resolved by introducing takāful in India. Thus, the findings of this research contribute to the existing literature, insurance operators and regulators.