Operation of Islamic insurance in Sri Lanka: Developments and challenges / Seyed Mohamed Mohamed Mazahir

Takāful (an alternate insurance under Islamic law) is a rapid developing industry in the world as well as in Sri Lanka, an Asian Muslim minority country. At present, a large number of insurance customers prefer Takāful insurance to other conventional insurance. For attracting these customers, the conventional insurance operators initiated a wing of Islamic insurance in their companies. This situation has posed a scientific research to evaluate the current state of Takāful industry in Sri Lanka and its developments and challenges. This study was planned to address this gap. The objectives of this study were to assess the operation of Takāful in Sri Lanka, to evaluate Takāful developments in terms of jurisprudential and business developments, to identify the challenges faced by Takāful industry in Sri Lanka and to propose solutions to the identified challenges and to strengthen Takāful insurance in Sri Lanka In this study, the investigator adopted survey method. He collected data for the study by using the tools of focus group interviews and the content analysis from the Secondary data. The sample for the study was selected from among the Takāful operators including members of the Sharī’ah advisory council (12 persons), Sharī’ah scholars including intellectuals (10 persons) and Takāful customers (20 persons). The investigator used purposive sampling technique to select the sample. The data obtained from the interviewees and from the secondary data were analyzed by using the method of descriptive analysis and transformed into chapters of the thesis. The findings are categorized mainly on three titles as assessment of current state of Takāful in Sri Lanka, its developments and the challenges respectively. Based on the findings of the study, the investigator suggested a number of constructive suggestions for Takāful operators, Sharī’ah advisors, educators, intellectuals and participants. This thesis contributes to the field of research in the subject of Takāful generally and to Takāful industry in Sri Lanka particularly. It opens a window to new researchers to do in-depth research on number of issues consisted in this thesis