Waqf-takaful Death Compensation: A Critical Analysis from the Perspective of Maqasid syariah

Abstract

Takaful is an Islamic insurance system that follows Shariah rules, avoiding prohibited elements such as interest, gambling, and uncertainty. Waqf involves transferring property ownership for the benefit of Allah SWT, allowing its use without physical loss to the beneficiary. Presently, only four takaful companies provide the chance for takaful participants to endow death compensation through waqf instruments, namely, Takaful Ikhlas Family Berhad, Etiqa Takaful Berhad, Zurich Takaful Malaysia Berhadand Great Eastern Takaful Berhad. Besides problems in managing waqf, the takaful companies also vary in their waqf contributions to religious institutions, and they often overlook the concept of Maqasid Shariah. Hence, this study was carried out to critically analyze the waqf death compensation through takaful products in Malaysia according to the perspective of Maqasid Shariah. This study adopts a qualitative method, collecting data from interviews with selected takaful operators and secondary published sources. The data was then analyzed using content analysis. The study found that waqf-takaful death compensation offered by takaful companies in Malaysia adheres to Maqasid Shariah. However, these companies face challenges in applying Maqasid Shariah to their waqf-takaful death compensation products. The study proposes that emphasizing Maqasid Shariah could improve waqf-takaful death compensation offerings in Malaysia.