Section 28 of the Takäful Act, which adopts exactly the same wording as section 73 of the 1982 Act, renders any person who misleadingly induces persons to enter into a contract of insurance, guilty of an offence. Section 36 -I
of the Takaful Act, also
similar to section 74 of the 1982 Act26, requires any person connected with an insurer, to "give the prescribed information with respect to his connection with the operator insurer to the person to whom the invitation is issued". A comparison of the two acts demonstrates that the Takäful Act contains major provisions which are similar to insurance. legislation dealing other mainly with commercial
The safeguards introduced by the Takäful Act in order to afford protection to the , insured, are not native to 'Islamic' insurance. Indeed, there are many regulations in force in the context of commercial insurance, which are interventionist in favour of the insured, where commercial insurance presents no more likelihood of inequality than the Takäful system27. It remains, therefore, to question the rationale behind insurance Takäful Islamically the conventional rendering permissible, whilst rejecting a. Shari It is particularly remarkable that the Takäful Act has unacceptable under the no special structure imposed on the insuring body.
Moreover, there has been no
attempt to introduce the mutual concept, much acclaimed, by those opposing but be insurance, lawful This the approved, cannot conventional as only structure. since as it was concluded earlier.
The mutual form does not, by itself, validate insurance since it has no bearing on the forbidden elements supposedly involved in commercial insurance. The Takiful Act, by allowing Takäful to be conducted by "a company, as defined in the Companies Act 1965, or by
a society
registered under the Co-operative
acknowledges the commercial character of Takäful.
Societies Act"28
Takaful is viewed as a
i. insuring body business, by the e. as an activity commercial activity operated as a generating profit.
Yet, despite the fact that this source of profit is implicitly viewed
brotherhood, based Takäful Act Takäful the on as such, presents as a scheme it its in disinterested, terminology that and solidarity and other colours moral values29, vein, using words and expressions such as 'family solidarity' for life insurance and 'contribution' for premiums. The Act presumes that the insured persons are animated by a will to assist each other
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