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1. HISTORY AND DEVELOPMENT OF INSURANCES dibf 06202 Presented By Mr. Thabiti Mohamedi Ally Faculty Of Business Administration Muslim University Of Morogoro

2. Are You Okey ?? 2/28/2023 BY MR.THABITI 2

3. Module’s outline In this very short Tutorial, we will be discussing some issues relating to the: Historical development of conventional insurance and takaful and Trends of takaful practices 2/28/2023 BY MR.THABITI 3

4. What Is The Origin of Insurance ? Insurance has existed for many centuries. Some historian traced the of insurance to 215 CE, when the Roman government was required by military supplies to accept all risks arising from enemy attacks, storms, and other natural disaster for supplies carried on their ships. Around 2800 B.C history had shown the insurance practices from Babylonians to fight against losses by the merchants and traders. 2/28/2023 BY MR.THABITI 4

5. Cont.…. The modern insurance can be traced its beginning to the 1600’s when British merchants and ship owners began to meet at a coffeehouse near Lombard street in London. There they made an agreement to mutually share in the profit and losses of see voyages. In Greeks , Chinese and Europeans as well as England in 1583 the first life insurance contracts was prevailed. The movement went viral to Malaysia from 1960’s and in 1963 the government introduced insurance act of 1963. 2/28/2023 BY MR.THABITI 5

6. Historical Development of takaful The evolution of takaful has a long history. The main identifiable phases are the following: 1979 : The first Ta'awun model (cooperative) was developed in Sudan. 1984 : The mudharabah model was developed in Malaysia. 1984 : The wakalah model was developed in the Gulf. 1996 : The waqf model was developed in South Africa. Most takaful models are the hybrid of the above models. 2/28/2023 BY MR.THABITI 6

7. Trends Of Takaful Practices 2/28/2023 BY MR.THABITI 7

8. Trends Of Takaful Practices PRACTICE OF AL-AQILAH This was a practice of the ancient Arab tribal custom, which was introduced to replace the barbaric “blood for blood” system. Under this system, if any member of a tribe was killed by a member of another tribe, the close relatives of the killer known as ‘ Aqilah ’ or ‘ Ma’aqil ’ in Arabic terminology are required to pay an amount of “blood money” as compensation to the heir of the victim. 2/28/2023 BY MR.THABITI 8

9. Trends Of Takaful Practices PRACTICE OF AL-AQILAH They will collect and contribute on behalf of the killer. The payment of the “blood money” seemed to be a kind of financial protection for the heir of the deceased against the unexpected death of the victim. 2/28/2023 BY MR.THABITI 9

10. Trends Of Takaful Practices PRACTICE OF PROPHET MUHAMMAD (s.a.w ) The practice was endorsed by Prophet Muhammad SAW and was expressed in the first Constitution of Madinah (Mithaq al-Madinah). The constitution of Madinah that was declared shortly after the migration to Madinah in 622 A.D is the greatest example of how the Prophet Muhammad SAW had legislated the insurance concept. 2/28/2023 BY MR.THABITI 10

11. Trends Of Takaful Practices PRACTICE OF THE COMPANIONS. The Aqilah system was further developed during the time of the second Caliph of Islam, Sayydina Umar al-Khattab (r.a.) He established a Diwan of Mujahidin in various districts for the purpose of extending mutual cooperation to contribute the diyat money for the murder of their own tribesman committed by another of the same tribe. 2/28/2023 BY MR.THABITI 11

12. THE END Wabillah Tawfiiq 2/28/2023 BY MR.THABITI 12

13. 2/28/2023 BY MR.THABITI 13