LIST OF TABLES............................................................................................................................................IV

LIST OF FIGURES ........................................................................................................................................... V

LIST OF ABBREVIATIONS..........................................................................................................................VI

EXECUTIVE SUMMARY .................................................................................................................................9

CHAPTER 1: INTRODUCTION.................................................................................................................. 14

1.1. Background of the Study ........................................................................................................14

1.2. Objective of the Study..............................................................................................................16

1.3. Summary Contents of the Study...........................................................................................17

1.4. Methodology ...............................................................................................................................18

CHAPTER 2: CONCEPTUAL FRAMEWORK OF TAKAFUL ............................................................... 23

2.1. Concept and Role of

Takaful

and

Re-Takaful

...................................................................23

2.1.1. Definition of Takaful......................................................................................................................... 23

2.1.2. Significance of Insurance and Takaful....................................................................................... 26

2.1.3. Re-Takaful ............................................................................................................................................ 27

2.2.

Shari'ah

Principles of

Takaful

and

Re-Takaful

...............................................................30

2.3. Comparison of

Takaful

with Conventional Insurance .................................................35

CHAPTER 3: TAKAFUL BUSINESS MODELS ........................................................................................ 38

3.1. Underlying Contracts in

Takaful

..........................................................................................38

3.1.1. The Contractual Relationship among the Participants....................................................... 39

3.1.2. The Contractual Relationship between the Participants and the TO............................. 39

3.2.

Takaful

Modus Operandi ........................................................................................................40

3.2.1. Ta’awuni (Cooperative) Model ..................................................................................................... 41

3.2.2. Wakalah (Principal-Agent) Model .............................................................................................. 42

3.2.3. Mudarabah (Profit Sharing) Model ............................................................................................ 44

3.2.4. Wakalah-Mudarabah (Agency-Partnership) Hybrid Model.............................................. 46

CHAPTER 4: THE TAKAFUL GLOBAL LANDSCAPE........................................................................... 48

4.1. Overview of the Global

Takaful

Industry..........................................................................48

4.2. Trends in Global Regulation of

Takaful

............................................................................50

4.3.

Takaful

: An Underexplored Market....................................................................................55

4.4.

Takaful

from the Legal Perspective....................................................................................57

4.4.1. Corporate Personality of Takaful Company ............................................................................ 57

4.4.2. Conflict of Laws................................................................................................................................... 58

4.4.3. Takaful Contracts and Interpretation of Clauses .................................................................. 59