ABSTRACT
A takaful operation (Islamic insurance) is an alternative to conventional method of protection from the various risks ranging to life, properties, default, and to health. In October 1995, the ASEAN Takaful Group (ATG), a grouping of takaful operators in Brunei, Indonesia, Malaysia, and Singapore was formed to enhance mutual co-operation and to facilitate the exchange of business among takaful operators in ASEAN. Known as notorious industry, the takaful business in Malaysia, Takaful Malaysia Bhd., is regulated and strictly supervised by BNM (central bank) since 1988 with the appointment of the BNM Governor as the Director-General of Takaful. In developing the takaful industry in Malaysia, Bank Negara Malaysia has adopted a gradual approach that can be divided into three phases: Phase I (1984–1992), Phase II (1993–2000), and Phase III (2001–2010). This chapter shares the management practices of these phases in details.
