INSURABLE INTEREST UNDER LIFE INSURANCE AND FAMILY TAKAFUL

Abstract

This is a doctrinal and comparative research between the traditional law and the Shariah with regard to insurance and takaful intermediaries. It has been found that under both life insurance and family takaful, intermediaries are considered as part and parcel of the business. Their role is not only limited to pre-contract stage but it is broad enough to cover any act related to the issuance, renewal or continuation of the contract. Moreover, any act done or statement made in the course of their duties is regarded as that of the insurer and operator. However, if an agent exceeds his authorization, the insurer or operator is exempted from liability; but the insurer or operator may ratify that unauthorized act (fudalah) done by the agent.