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International Journal of Academic Research in Business and Social Sciences

Open Access Journal

ISSN: 2222-6990

Application the Method of Jurisprudence "An Emergency Necessitates the Forbidden: In the Case of Re-Insurance by Takaful Companies in Malaysia

Muhammad Nasri Md Hussain, Yusuf Haji-Othman, Mohd Sholeh Sheh Yusuff, Mohd Juzaili Juhan

http://dx.doi.org/10.6007/IJARBSS/v14-i10/23363

Open access

Re-takaful is a procedure or mechanism through an agreement that allows a direct takaful operator called 'cedant' to transfer or surrender some of the risks incurred to takaful operators or other re-takaful operators. However, not all re-takaful is carried out in the takaful industry as well to the lack of funds or capital of a re-takaful company. Hence, alternatively, re-takaful services in the insurance industry are used to cover the shortage inherent in re-takaful companies. The taking of reinsurance by Takaful companies in certain circumstances cannot be avoided even though reinsurance does not comply with Islamic law. The main goal of this study is to review the jurisprudence method "an emergency requires something prohibited" and apply it in reinsurance by Takaful Companies. The method known for sure is to see the extent to which reinsurance by the Takaful Company is allowed. This study uses qualitative methods through content analysis. The data were analyzed using descriptive and deductive methods. The result of finding that the "emergency requires something prohibited" method has been applied in reinsurance by Takaful companies when there is no re-takaful company that can provide services in a country based on its small number or lack of capacity to meet market requirements as a management risk to the company Takaful to perform its services. However, the determination of the state of emergency must be reviewed and certified by a Syariah advisor or regulatory body and the extent of the harm that occurs must be determined for the operation to comply with the requirements of Syariah and uphold the principles of justice.

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Hussain, M. N. M., Haji-Othman, Y., Yusuff, M. S. S., & Juhan, M. J. (2024). Application the Method of Jurisprudence "An Emergency Necessitates the Forbidden: In the Case of Re-Insurance by Takaful Companies in Malaysia. International Journal of Academic Research in Business and Social Sciences, 14(10), 2372–2379.