Is the Takaful model the government wants to introduce for funding university tuition permissible?

Q. Please can you advise as to the shariah permissibility of the Takaful model the government wishes to introduce as alternative finance for funding university tuition fees?

الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب

A. The tentative opinion of Al-Qalam Panel is that an amended version of the Takāful model proposed in the BIS consultation document may form the basis of an acceptable alternative subject to the how the model is operationally developed in the future. It is critical that the model, when developed, remains gratuitous (donation based) and does not end up being commutative (compensation based), as this is the single most important characteristic in so far as Sharīʿah permissibility.

For more information, please read our detailed fatwa on this matter here.

Leave a Reply

Your email address will not be published. Required fields are marked *