Waqf based takaful model
The aim of this chapter is to look at the relationship between waqf and takaful. The premise behind this exercise is that, for the purpose of social entrepreneurship, it would be desirable if it were to work. Any analysis and discussion on whether the relationship between waqf and takaful can be successful, has to deal with it being both Shari’ah and regulator compliant at all times. In particular, this chapter critically evaluates: (i) the concept of tabarru’, said to be central to understand takaful; (ii) the principles governing waqf, particularly those of charitable purpose and irrevocability; (iii) the principle of profit-sharing in a relationship of this nature; (iv) the modern regulatory requirements of a takaful undertaking; and (v) the corporate governance underlying this relationship. The challenges are many. Can the marriage work?