Overview and history

Islamic Insurance

A Modern Approach to Islamic

Banking By Aly Khorshid
he is called aly khorshid, and he famous man and
also he scholar for almost two decades. he has
been working in Islamic banking he explained in
this book exactly the meaning of Islamic insurance.
Edition1st Edition
First
Published2004
eBook
Published12
February 2004
Pub. Location
London
Imprint Routledge
Pages248

Subjects Area Studies, Economics, Finance, Business

ABSTRACT
Some Muslims believe insurance is unnecessary, as a
society should help its victims. Muslims can no longer
ignore the fact that they live, trade, and communicate
with open global systems, and they can no longer ignore
the need for banking and insurance. Aly Khorshid
demonstrates how initial clerical apprehensions were
overcome to create pioneering Mus
TABLE OF CONTENTS

Chapter|30 pages

The meaning of insurance in Islam

Chapter|13 pages

Riba (Usury) and Gharar (Risk) Gharar has two types gharar yasir (minor

uncertainty) and gharar fahish (extreme uncertainty).

Chapter|53 page

Pre-modern and modern jurists’ standing on insurance

Chapter|16 pages

The development of mutual insurance in the West

Chapter|19 pages

The development of Islamic banking and insurance in Malaysia: a case study

Chapter|23 pages

The development of Islamic banking and insurance in Saudi Arabia: a case study

Chapter|11 pages

Basic principles for an insurance scheme acceptable to the Islamic faith .

Islamic Insurance Overview.

Introduction
Islamic insurance, also known as insurance, is an
important component of the Islamic finance industry.
insurance is based on the principles of cooperation,
solidarity, and mutual assistance, and it provides an
alternative to conventional insurance which is often
seen as incompatible with Islamic law. Aly Khorshid's
book, "Islamic Insurance: a modern Approach to
Islamic Banking", offers an indepth analysis of
insurance, its history, its principles, and its practices.
In this review, we will provide an overview of the
book, its main arguments, and its contributions to the
field of Islamic finance.

Islamic insurance is a form of insurance that operates

in accordance with Islamic principles.
 Insurance is based on the principles of cooperation,
mutual assistance, and solidarity.
Insurance is an important component of the Islamic
finance industry, providing an alternative to
conventional insurance
Chapter one

Introduction to Islamic insurance The first chapter of

the book provides an introduction to insurance and its
historical roots. Khorshid explains that insurance is
based on the concept of tabarru, or voluntary
contributions, and that it was first practiced in the
Arabian Peninsula in the early days of Islam. The
chapter also discusses the challenges facing insurance in
the modern world, including regulatory issues and
competition from conventional insurance.

Chapter two
Shariah Principles of insurance In the second chapter,
Khorshid delves into the Shariah principles that
underpin insurance. He explains that insurance is based
on the principles of cooperation, mutual assistance, and
solidarity, and that it is designed to promote social
justice and reduce economic disparities. Khorshid also
provides an overview of the key Shariah requirements
for insurance, including the prohibition on interest and
speculation.
Chapter three
Types of Islamic insurance Chapter 3 explores the
different types of insurance, including family takaful,
general takaful, and reinsurance l. Khorshid explains
the differences between these types of insurance and
provides examples of their use in different contexts.
The chapter also discusses the challenges facing the
takaful industry, including the lack of standardization
and the need for greater regulatory oversight.

Chapter four
Operational Framework of insurance In chapter 4,
Khorshid provides an overview of the operational
framework of insurance. He explains the roles and
responsibilities of the various parties involved in
insurance, including the operator, the policyholders, and
the Shariah supervisory board. The chapter also
discusses the key operational challenges facing
insurance operators, including risk management and
capital adequacy.
Chapter five
Financial Management of insurance Chapter 5
focuses on the financial management of
insurance, including the different types of
funds used in insurance operations and the key
financial metrics used to assess insurance
performance. Khorshid also discusses the
challenges facing insurance operators in terms
of financial management, including the need
to balance profitability with Shariah
compliance.
Chapter six
Risk Management in insurance in chapter
6, Khorshid explores the key risk
management principles that apply to
insurance. He explains the different types
of risks that insurance operators face,
including underwriting risk, investment
risk, and operational risk, and he provides
examples of how these risks can be
managed. The chapter also discusses the
challenges facing insurance operators in
terms of risk management, including the
need to balance risk and reward.
Chapter seven

Regulatory Framework for insurance Chapter 7 focuses

on the regulatory framework for insurance, both at the
national and international levels. Khorshid explains the
different types of regulatory bodies that oversee
insurance operations, including central banks, insurance
regulators, and Shariah supervisory boards. The chapter
also discusses the challenges facing insurance
regulators.

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