This article was first published in Islamic Finance news Volume 17 Issue 16 dated the 22nd April 2020.
Aliredha Walji, Vice President, USA, researches the limited options of Takaful in the US, in this article featured in Islamic Finance news.
Previously, we discussed the concept of Takaful as being a viable alternative to conventional insurance. This is because in Takaful the policyholders share in the profit and loss of the Takaful business, thereby also lessening the aspects of excessive uncertainty and gambling. However, Takaful options in the US are extremely rare.
Given this, what are those who wish to utilize Islamic financing to do in the current situation? Because of the uncertainty in this topic, there are differing views among scholars.
According to some, any type of insurance may be unallowable unless it is necessary or mandated by the state (ex auto insurance). Others, like Imam Joe Bradford, separate between the different types of insurance policies that help to cover us for insurable interests.