Purpose: This paper aims to examine the implications of compensation on late payment of takÄful benefit imposed in the Islamic Financial Services Act 2013 on the takÄful industry in Malaysia. It also aims to identify the issues and challenges faced by takÄful operators in the implementation of the compensation and propose solutions for the benefits of the takÄful industry. Design/methodology/approach: This research uses the qualitative approach to understand the practices of claims in takÄful and to analyze the implication of compensation on late payment of takÄful benefit to the takÄful industry in Malaysia. Data are collected through survey and interview with various takÄful stakeholders. Findings: Some of the key findings in this research are that the compensation of late payment of takÄful benefit has a positive impact to the takÄful industry. The research also found some SharÄ«Ê¿ah operational issues in terms of its implementation among takÄful operators. Research limitations/implications: The research focuses on compensation on late payment of takÄful benefit claim in death and personal accident only. Practical implications: The research offers certainty to the takÄful industry and an explanation to academic and legal fraternities on the implementation of compensation on late payment of takÄful benefit according to Islamic Financial Services Act (IFSA) 2013. Originality/value: The research provides a valuable contribution to the current practices of takÄful operators, identifies some issues and challenges of its implementation and proposes the solution. © 2017, Muhammad Ali Jinnah Ahmad and Burhanuddin Lukman.
Year
2017
Country
Malaysia
Language
English
Abstract
English
ISSN/ISBN
1281976
No. of Pages
210-215
Number
2
Volume
9
Select type of work
Name of the Journal
Affiliations
CIS Program Old
References
CIS publications
No
CIS Thesis
No