INSURANCE OF ENDOWMENT' AND ITS TERMINATION LEGAL CONSEQUENCES: A COMPARATIVE STUDY IN ISLAMIC LAW

Abstract

This research examines the idea of Islamic insurance based on endowing cash. The researcher assesses from an Islamic legal perspective; the legitimacy of this contemporary financial transaction, its legal nature, the ruling of' Zakat' i.e. alms of endowment insurance fund, and the legal consequences of its termination, whether or not there is a deficit. This study comes in the light of studies seeking to develop cooperative insurance and expand its range in practice. Moreover, it attempts to suggest solutions for existing problems, and provide alternatives for its controversial forms.