Book contents
- Frontmatter
- Contents
- Introduction
- 1 Determining the Efficiency of Islamic and Conventional Commercial Banks in the GCC: Meta Frontier Analysis
- 2 The Profitability and Efficiency of Islamic Banking: A Comparative Study of Conservatives, Moderates and Liberals
- 3 Performance of Islamic Unit Trust Funds In 2005-2011 Period: A Regional Comparison
- 4 Investigation into the Managerial Investment Skills of Islamic and Conventional Equity Mutual Fund Managers in Saudi Arabia
- 5 Wavelet Analysis of Stock Price Behavior: Evidence from Dow Jones Islamic GCC Stock Index Returns
- 6 Efficiency and Stock Market Performance of Islamic Banks in GCC Countries
- 7 Impact of Global Financial Crisis on Islamic and Conventional Stocks in the GCC Stock Markets: An Application of Arc h and GARCH Methods
- 8 Determinants of Sukuk Prices in the GCC Region from 2006-2011: Under the Prism of Risk Analysis
- 9 Factors Influencing the Excess Returns of Sukuk: An Empirical Analysis on USD Denominated Sukuk Issued by Corporations in the Gulf Cooperation Council Countries
- 10 Bank Supervision, Regulation and Efficiency: Evidence from GCC Dual Banking
- 11 Factors Influencing Islamic Social Reporting (ISR): An Empirical Study in Islamic Banks in Indonesia, Malaysia and the GCC Countries
- 12 Service Quality in Islamic and Conventional Banks in Kuwait: Analysis of Customers’ Perceptions
- 13 An Empirical Study of Perceived Service Quality of Islamic Banks: A Comparison between Malaysia and Kuwait
- 14 Participants’ Perceptions about Takaful Operators Disclosure System: An Empirical Study on Saudi Arabia
- Glossary of Arabic Terms in Islamic Finance
- About the Contributors
14 - Participants’ Perceptions about Takaful Operators Disclosure System: An Empirical Study on Saudi Arabia
Published online by Cambridge University Press: 25 September 2025
Book contents
- Frontmatter
- Contents
- Introduction
- 1 Determining the Efficiency of Islamic and Conventional Commercial Banks in the GCC: Meta Frontier Analysis
- 2 The Profitability and Efficiency of Islamic Banking: A Comparative Study of Conservatives, Moderates and Liberals
- 3 Performance of Islamic Unit Trust Funds In 2005-2011 Period: A Regional Comparison
- 4 Investigation into the Managerial Investment Skills of Islamic and Conventional Equity Mutual Fund Managers in Saudi Arabia
- 5 Wavelet Analysis of Stock Price Behavior: Evidence from Dow Jones Islamic GCC Stock Index Returns
- 6 Efficiency and Stock Market Performance of Islamic Banks in GCC Countries
- 7 Impact of Global Financial Crisis on Islamic and Conventional Stocks in the GCC Stock Markets: An Application of Arc h and GARCH Methods
- 8 Determinants of Sukuk Prices in the GCC Region from 2006-2011: Under the Prism of Risk Analysis
- 9 Factors Influencing the Excess Returns of Sukuk: An Empirical Analysis on USD Denominated Sukuk Issued by Corporations in the Gulf Cooperation Council Countries
- 10 Bank Supervision, Regulation and Efficiency: Evidence from GCC Dual Banking
- 11 Factors Influencing Islamic Social Reporting (ISR): An Empirical Study in Islamic Banks in Indonesia, Malaysia and the GCC Countries
- 12 Service Quality in Islamic and Conventional Banks in Kuwait: Analysis of Customers’ Perceptions
- 13 An Empirical Study of Perceived Service Quality of Islamic Banks: A Comparison between Malaysia and Kuwait
- 14 Participants’ Perceptions about Takaful Operators Disclosure System: An Empirical Study on Saudi Arabia
- Glossary of Arabic Terms in Islamic Finance
- About the Contributors
Summary
1. Introduction
Takaful is derived from the Arabic root word “kafala”, a verb which means guarantee, bail, warrant or an act of securing one’s need (Ali et al., 2008). Takaful is also defined in Section 2 of the Malaysian Takaful Act 1984 as:
“A scheme based on brotherhood, solidarity and mutual assistance which provides for mutual financial aid and assistance to the participants in case of need whereby the participants mutually agree to contribute for that purpose.”
The Accounting Auditing Organization for Islamic Financial Institutions (AAOIFI) also defined Islamic insurance (in 2004/2005) as per the Financial Accounting Standard No. 12, in Appendix E:
“Islamic insurance is a system through which the participants donate part or all of their contributions which are used to pay claims for damages suffered by some of the participants. The company’s role is restricted to managing the insurance operations and investing the insurance contributions.”
By 2007 AAOIFI defined Islamic insurance in line with Shari’ah Standard 26 (2) 2007:
“Islamic insurance is an agreement between persons who are exposed to risks to protect themselves against harm arising from risk by paying contributions on the basis of a ‘commitment to donate’. Following from that the insurance fund is established and it is treated as a separate legal entity which has independent financial liability. The fund will cover the compensation against harms that befall any of the participants due to the occurrence of the insured risks (perils) in accordance with the terms of the policy.”
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- Islamic Finance , pp. 347 - 374Publisher: Gerlach BooksPrint publication year: 2016
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