On a sunny Friday afternoon, a young PhD candidate in Islamic Finance came for a discussion about non-proportional method of retakaful. She brought with her an ISRA paper that briefly touched this topic but not conclusive in any way. She had the impression that authors question shariah compliance of non-proportional retakaful method. The reason being is that, unlike proportional method, there is no actual sharing between takaful risk fund and retakaful risk fund in non-proportional structure.
More recently, Dewan Syariah Nasional of Majelis Ulama Indonesia (DSN-MUI) is discussing whether non-proporsional retakaful is shariah compliant, which may end up with fatwa on this matter. If the fatwa decided that non-proportional retakaful is not shariah compliant, it may bring significant impact to the market as non-proportional retakaful has been widely used globally.
Scholars at DSN-MUI so far incline to a view that risk sharing element is absent in non-proportional retakaful. What does e…
More recently, Dewan Syariah Nasional of Majelis Ulama Indonesia (DSN-MUI) is discussing whether non-proporsional retakaful is shariah compliant, which may end up with fatwa on this matter. If the fatwa decided that non-proportional retakaful is not shariah compliant, it may bring significant impact to the market as non-proportional retakaful has been widely used globally.
Scholars at DSN-MUI so far incline to a view that risk sharing element is absent in non-proportional retakaful. What does e…