Not currently offered

Credit points: 15

Subject outline

In this subject, students will develop an understanding of the theory and practice of Islamic insurance (takaful) vis-á-vis conventional insurance. On successful completion of this subject, students will have a sound understanding of the concept of insurance, its types, operating principles, shariah objections on conventional insurance, alternative models of Islamic insurance and contemporary issues. They will be able to do a shariah audit of takaful operations, identify issues with its business models and suggest shariah-complaint solutions where appropriate.

SchoolLa Trobe Business School

Credit points15

Subject Co-ordinatorHayat Khan

Available to Study Abroad StudentsYes

Subject year levelYear Level 5 - Masters

Exchange StudentsYes

Subject particulars

Subject rules

Prerequisites FIN5POF and ECO5POE or BUS5AFS


Incompatible subjectsN/A

Equivalent subjectsN/A

Special conditionsN/A


Resource TypeTitleResource RequirementAuthor and YearPublisher
ReadingsLecture handoutsPrescribedKhan, HayatKHAN, HAYAT
ReadingsInsurance and Islamic lawRecommendedMusleh-Ud-Din, M.NEW DELHI: ADAM PUBLISHERS & DISTRIBUTORS, 2006
ReadingsInsurance in an Islamic economyRecommendedSiddiqi, M. N.UK: THE ISLAMIC FOUNDATION, 1987
ReadingsIslamic and modern insurance: principles and practicesRecommendedBillah, M. N.PETALING JAYA:ILMIAH PUBLISHERS SDN BHD, 2003
ReadingsIslamic insurance: A modern approach to Islamic banking (1st ed.)RecommendedKhorshid, A.UK:RUTLEDGE CURZON, 2004
ReadingsOther as specified by the subject coordinatorRecommendedN/AN/A
ReadingsRisk and insurance managementRecommendedChin, Y. W.SINGAPORE: PRENTICE HALL, 2004
ReadingsTakaful Islamic Insurance: Concepts and Regulatory IssuesRecommendedKarim, S., Karim, R. A. A., and Nienhaus, V.JOHN WILEY & SONS INC.,2009

Graduate capabilities & intended learning outcomes

01. differentiate Islamic insurance (takaful) from conventional insurance

Lectures and tutorials

02. identify shariah objections on conventional insurance and analyse alternative models of Islamic insurance

Lectures and tutorials

03. analyse business models under takaful operation from efficiency point of view

Lectures and tutorials

04. perform sharia#h analysis/audit of Islamic insurance in operation

Lectures and tutorials

05. suggest shariah compliant solutions where appropriate

Lectures and tutorials

06. discuss contemporary issues related to underwriting, governance, regulation and supervision of Islamic Insurance

Lectures and tutorials

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