LECTURE 02 DIBhhgyygyttgfgffgF 06202.pdf

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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
??
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3. Module‟s
outline
InthisveryshortTutorial,wewillbediscussingsome
issuesrelatingtothe:
Historicaldevelopmentofconventionalinsurance
andtakafuland
Trendsoftakafulpractices
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4. What Is The
Origin of
Insurance ?
oInsurancehasexistedformanycenturies.Somehistorian
tracedtheofinsuranceto215CE,whentheRoman
governmentwasrequiredbymilitarysuppliestoaccept
allrisksarisingfromenemyattacks,storms,andother
naturaldisasterforsuppliescarriedontheirships.
oAround2800B.Chistoryhadshowntheinsurance
practicesfromBabylonianstofightagainstlossesbythe
merchantsandtraders.
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5. Cont.….
oThemoderninsurancecanbetraceditsbeginningtothe
1600’swhenBritishmerchantsandshipownersbeganto
meetatacoffeehousenearLombardstreetinLondon.
oTheretheymadeanagreementtomutuallyshareinthe
profitandlossesofseevoyages.
oInGreeks,ChineseandEuropeansaswellasEnglandin
1583thefirstlifeinsurancecontractswasprevailed.
oThemovementwentviraltoMalaysiafrom1960‟sandin
1963thegovernmentintroducedinsuranceactof1963.
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6. Historical
Development of
takaful
Theevolutionoftakafulhasalonghistory.The
mainidentifiablephasesarethefollowing:
1.1979: The first Ta'awun model (cooperative) was
developed in Sudan.
2.1984: The mudharabah model was developed in
Malaysia.
3.1984: The wakalah model was developed in the Gulf.
4.1996: The waqf model was developed in South Africa.
Most takaful models are the hybrid of the above models.
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7. Trends Of
Takaful
Practices
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8. Trends Of
Takaful
Practices
A.PRACTICEOFAL-AQILAH
ThiswasapracticeoftheancientArabtribalcustom,which
wasintroducedtoreplacethebarbaric“bloodforblood”
system.Underthissystem,ifanymemberofatribewas
killedbyamemberofanothertribe,thecloserelativesof
thekillerknownas„Aqilah‟or„Ma’aqil‟inArabic
terminologyarerequiredtopayanamountof“blood
money”ascompensationtotheheirofthevictim.
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9. Trends Of
Takaful
Practices
A.PRACTICEOFAL-AQILAH
Theywillcollectandcontributeonbehalfofthekiller.
Thepaymentofthe“bloodmoney”seemedtobeakind
offinancialprotectionfortheheirofthedeceasedagainst
theunexpecteddeathofthevictim.
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10. Trends Of
Takaful
Practices
B.PRACTICEOFPROPHETMUHAMMAD (s.a.w)
ThepracticewasendorsedbyProphetMuhammadSAW
andwasexpressedinthefirstConstitutionofMadinah
(Mithaqal-Madinah).TheconstitutionofMadinahthat
wasdeclaredshortlyafterthemigrationtoMadinahin
622A.DisthegreatestexampleofhowtheProphet
MuhammadSAWhadlegislatedtheinsuranceconcept.
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11. Trends Of
Takaful
Practices
C.PRACTICEOFTHECOMPANIONS.
TheAqilahsystemwasfurtherdevelopedduringthetime
ofthesecondCaliphofIslam,SayydinaUmaral-Khattab
(r.a.)HeestablishedaDiwanofMujahidininvarious
districtsforthepurposeofextendingmutualcooperation
tocontributethediyatmoneyforthemurderoftheirown
tribesmancommittedbyanotherofthesametribe.
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12. THE END Wabillah Tawfiiq
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13. 2/28/2023
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