Abstract

Takaful business in Malaysia is governed by Takaful Act 1984 which provides for the regulations of Takaful business in Malaysia. However, the Act itself is not comprehensive and still relies on many other established Acts that mostly based on the principles of English Common Law. Hence, the objective of this paper is to evaluate the act of applying the Common Law in Malaysian Takaful Act 1984 based on the Islamic doctrine al-’Urf. The analysis finds that the application of the Common Law in Takaful Act 1984 is generally permissible provided the rules do not contradict with any existing Islamic texts.

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