Takaful is Islamic insurance was introduced as a substitute to conventional insurance. It is free from Gharar (uncertainty), Maysir (gambling), and Riba (riba). According to Central Bank of Malaysia (BNM, 2019), there are 12 family/life Takaful companies in Malaysia as of 2020 and it was established based on cooperation and mutual assistance as it is widely used in the commercial sector but only three companies Takaful Ikhlas Family Berhad, Etiqa Takaful Company and Zurich Takaful Malaysia Berhad Company offered Waqf opportunities through the death compensation of Takaful products. But the standard of implementing the concept was inconsistent and no standard framework in managing the Waqf in Takaful through the death compensation of Takaful because the submission of Waqf to a religious institution differs from one company to another. Therefore, this research will develop a Waqf-Takaful framework from the distribution of death compensation which is part of the innovation in exploring the potential of empowerable assets for as many participants as possible which has a broader Islamic value toward Maqasiq Shariah, so that the goal of the nation to share the Tabarru fund in form of Waqf fund for Takaful compensation benefits the socio-economy of the ummah as long as its management is governed by a trusted, effective and productive party. This study is done through a mixed-method where the quantitative research aims to deeply understand the phenomena related to research questions and the checklist of Takaful company documentations and the qualitative approach is to explore professional opinion and focus group discussion by interviewing 20 Shariah / Muamalat experts, 20 Shariah panels and 10 industry players who expert in Takaful industry whose very well verses with Waqf-Takaful framework or model in Malaysia. The data will be analyzed in descriptive statistics analysis and a T-test using SPSS. The findings of this study will offer an overview of the proposed Model of Waqf-Takaful operations in the Takaful industry in Malaysia and which will emphasize the issues of the framework, "SOP", challenges, opportunities, and recommendations. It also creates an element of distribution of death compensation in the form of Waqf to religious institutions and makes Waqf in Takaful product as part of the economic network has great potential to give strength to religious institutions that support the development of Islam in Malaysia.
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In-Text Citation: (Ahmad et al., 2022)
To Cite this Article: Ahmad, R., Ali, M. N., Said, R., Bakar, M. A., Manan, F. N. A., & Albasri, S. H. (2022). Introduction to Waqf –Takaful Compensation Model: Adopting the Maqasid Shariah Concept for Socio-Economic Development in Malaysia. International Journal of Academic Research in Business and Social Sciences, 12(8), 1054– 1068.
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