Microsoft Case Study Example | Topics and Well Written Essays - 2500 words

Microsoft - Case Study Example Along with this Microsoft excel and Microsoft word are both consider as the leaders in their respective markets, and at that time both the Microsoft products took away the leadership from their leading products. Microsoft on the other hand also leads all the applications suite market along with its office system, because there were many other products that aimed at the business market. (Msters, 198, no page) The first ever product, which Microsoft created, was one of the versions of basic language for the very first computers known as Altair 8800. At that time Microsoft also continued to be a leader in the area of software development market along with its visual STUDIO NET and also MICROSOFT SQL. These both above-mentioned services are used in order to create much better known software, which also runs on the Windows operating system. Apart from this Microsoft are also considering as a target for anti-competitive practices, it is also consider as one of the most powerful and also most successful software companies ever formed. Furthermore there were many companies which have no doubt tried to bring this company down but they all failed. Because Microsoft is a company, which continues to further, expand in future. Microsoft known is one of the best companies in the field of information technology. Bill Gates the owner of Microsoft presented such types of information technology related products, which are proved very much advantageous for us. Different kinds of operating systems which are now used very much frequently are much more advantageous and beneficial for all of us. The operating systems invented by the Microsoft are such kind of the operating system, which provides deep insight knowledge for each and every customer or for those who use it frequently. (Msters, 198, no page) Microsoft has done really a great job; it has provided us much different kind of facilities with the help of which we can do various tasks in just a second. It's only because of it that now we are able to perform different kinds of duties and tasks very easily. MAIN BODY This part basically includes the inventions, which are done by Microsoft. Disk operating system, which is also known as DOS, was a perfect kind of operating system that helps a lot the company to find its first real success. It was only the disk operating system (DOS) with the help of which Microsoft gained a huge success, and this huge success made Microsoft one of the best worldwide company or organization. Later on during the transition of MS DOS to windows, Microsoft gained more and more success and this success allowed the company also to attain ground on the application software competitors. (Msters, 198, no page) Later on in 1993, Microsoft also released a windows known as windows NT 3.1, which is known as a business for an operating system along with this the windows 3.1 was also termed as an user interface but apart from this it was an entirely different and unique operating system. Microsoft is considered as an innovative and also a creative organization or a company, because behind the success of each and every company there is a special thing which is used in order to gain more and more suc

Why Illegal Immigrants Must Follow the Law Essay

Why Illegal Immigrants Must Follow the Law - Essay Example These illegal immigrants have made America their home and many have raised families in this country. It is therefore necessary for them to be law abiding so that their stay in this country is not ended abruptly through deportation or if they are convicted of a crime, they do not end up serving time in jail. Whether their status in the United States is legal or illegal, it is their duty to abide by the law of the land because these laws have been passed to ensure that there is order in society. Illegal immigrants, no matter what their background is, should ensure that they abide by the law for the purpose of keeping order in society. Abiding by the law is very important because if the large number of illegal immigrants would were to get involved in illegal activities, then there would be a radical increase of the crime rates in the United States. This would make it very difficult for the law enforcement agencies at the federal, state and county level to contain crime and the order whi ch has been a part of the American society since this nation was created would be destroyed. Illegal immigrants should therefore follow the law to the latter as they found it and should avoid any activities which will put them on the wrong side of the law. This will not only ensure their own security but it will also ensure the security of all the people in the nation as a whole. Many immigrants in the United States are in the country illegally and because of this, they must be very careful not to break the law because this will bring the attention of the law enforcement agencies on them (Katel, 393 – 420). Breaking the law would be to their disadvantage because it would lead them to either serve time in a prison or get them deported back to their home countries, defeating their purpose of coming to the United States to improve their lives. I believe that the fear of deportation should be enough to make the illegal immigrants abide by the law so that they can keep their posit ions, although illegal, within the United States secure. However, the United States also has a duty to treat these illegal immigrants with the respect they deserve because whether we like it or not, the majority of Americans are not native to this land. America was founded as a refuge for those who were running away from persecution for their beliefs or for people who wanted to make better lives and have a new beginning, and that is the reason why America is said to be a nation of immigrants. Since most Americans hail from immigrant families, they should not look down upon or discriminate against the illegal immigrants because they also are looking for opportunities the same as their ancestors were. Furthermore, discriminating against illegal immigrants only drives them towards breaking the law through committing illegal activities in order to make a living. A major incentive for illegal immigrants to follow the law and not to commit any crime is for the purpose of preventing the ri se of a negative public opinion of them. This will enable them to rehabilitate the image of illegal immigrants being opportunistic people whose main purpose is to earn a living without any consideration for the welfare of the people of the country in which they have gone to work (Scarborough, M). Their following the law will enable a building of good will towards them from the American public and will deprive their critics of the argument that illegal immigrants in the United States are a security threat to the nation and that there is a need for them to be deported and stricter measures have to be put in place to ensure that there are no illegal immigrants in the country. The good public opinion will also ensure that there is social harmony in the country and not the aggressive debates

Nursing Image Essay Example | Topics and Well Written Essays - 1500 words

Nursing Image - Essay Example Dorothea Lynde Dix (1802-1887) made a significant contribution to the state of mental health in the United States during the period starting late 19th Century. She is remembered for pioneering mental assylums in the United States. Dorothea Dix is regarded as a â€Å"voice for the mad†. Her contribution to the improvement of the lives of the mentally ill people in the United States cannot be compared to that of any other person in the history of nursing. Mental health is an important aspect of nursing, thus all mentally-ill patients deserve good nursing and care, just as other patients. According to Parry (2006), evidence shows that Dorothea might have been a victim of neglect from her parents, thus this might have influenced her to advocate for the well-being of mentally ill people in society, who were equally neglected at most times.In the year 1841, Dorothea Dix volunteered her time and knowledge to the East Cambridge jail, where she held one hour of devotion with female inm ates in that jail. While on this mission, Dorothea Dix realized that those inmates that were mentally-ill were living in poor conditions. For instance, these were chained in filthy and cold cells. Dorothea therefore, after making this observation, was committed to ensuring that the mentally-ill inmates lived in good conditions, and not the one she had witnessed. Most inmates have no power over their health, as while in prison, they cannot control the circumstances surrounding their health, such as the quality of the cells, among other aspects.

Deborah Tannens But What Do You Mean Essay Example | Topics and Well Written Essays - 500 words

Deborah Tannens But What Do You Mean - Essay Example I agree with Tannen’s stance on criticism. Women’s softened criticism originates in their delicate nature. Tannen rightly attributes it to their emphasis upon feelings rather than ego. Women talk to others the way they would like themselves to be talked to. On the other hand, men are straight-forward. Being rough and tough, they expect others to be rough and tough as well. They don’t realize when they are being too tough to the women because they are not women themselves. It’s just that they have never been able to feel how a woman feels when she is being talked to in a straight-forward and critical manner. I also agree to Tannen as she analyzes women’s feelings when they don’t get the same level of formality or politeness that they treat men with. I agree that quite often, women keep thanking others for â€Å"nothing†. Although a man might be trying to be gentle while responding to a woman manager’s thankyou with welcome, yet a woman may not understand that he was trying to play his part on the scale of politeness because his performance was just not up to the mark! I agree that men are stronger at arguing than women because this is what they do all the time. Although women also keep arguing among their community in their little capacity, yet their capacity does not measure equal to that of men. One reason for this may be that men fight over more crucial matters than women and are more often held accountable for their acts than women, though I disagree that women are not taken seriously if they don’t argue enough. I agree that women are more generous and eager in giving feedback while men are more reluctant and critical. What women take very seriously is an ordinary thing to men. Again, it’s the delicacy of women’s nature and the roughness of men’s that is playing a role here! The fact that men tend to bring solution to women for the problems they raise with the intention of

Had I Been White Essay Example | Topics and Well Written Essays - 750 words

Had I Been White - Essay Example Diouna, a young Senegalese woman was working as a laundress for the Pouchet family stationed in Dakar. When the family decided to take a holiday in France, they took Diouna along with them on the mistaken assumption by Diouana that she has been employed as a governess to the children of the couple. The French couple took advantage of the innocence and the lack of literacy of the black girl that made her lose all her hopes and dreams in coming to France. The scheming way of Madame Pouchet in taking Diouna to France was clearly demonstrated in the story. â€Å"In France when she hired a maid not only was the salary higher, but the maid demanded a day off to boot† (770). This was always the dilemma of Madame Pouchet whenever they had their holiday in France. â€Å"She had conceived a plan for her next vacation† (770). Her plan was to hire an African girl because she knew that â€Å"for three thousand francs a month, any young African girl would have followed her to the en d of the earth† (770). Madame Pouchet was set to put up her plan to success by praising the beauty of living in France and by showering Diouana with things such as old clothes and shoes that she knows would be of great necessity on the impoverished condition of Diouana and her family. Diouana fantasizes France as the land where her hope of becoming rich will come true. All she could think of was the â€Å"beauty, richness, and the joy of living† (770) in France. For Diouana getting rich would mean the â€Å"freedom to go where she wished, without having to work like a beast of burden† (770). This was the set of mind of Diouana that even an advice from Tive Correa, an old sailor who spent twenty years of his life in France, â€Å"For Diouana, he predicted nothing but misfortune† (772), was not given any consideration or thought. The youth should listen to the wisdom of experience of the old generation because they have been exposed to the realities of life and they are no longer blinded by their dreams. The courage of Tive Correa to counter the defense of Monsiuer Pouchet: â€Å"Certainly. What young African doesn’t dream of going to France?† (772) when the former announced that they did not force Diouana to come with them, was a manifestation of how knowledgeable he was on the real life of the Africans far from their native land. Diouana should have been more sensible when Tive Correa related how young Africans â€Å"confuse living in France with being a servant in France† (772). It should have been an eye opener for Diouna when Tive Correa relates that in Casamance, â€Å"we say that the darkness pursues the butterfly† (772) and not â€Å"the light attracts the butterfly† (772). Realization on her real life in France dawned upon Diouana: â€Å"Sold, sold. Bought, bought. They’ve bought me. For three thousand francs I do all this work. They lured me, tied me to them, and I’m stuck her e like a slave† (775). There is nothing more crushing to the spirit of one who is dreaming of a good life than knowing that he was deceived. Deceived up to the extent of losing one’s identity – â€Å"The neighbors would say: ‘It’s the Pouchets’ black girl . . .’ She wasn’t ‘the African girl’ in her own right, but theirs. And that hurt† (775). It was a very sad state for a person to feel so alone, far from the family who would protect and love and feeling that all hopes are shattered. These conditions usually lead to self-incrimination and will lead to getting angry with oneself and blaming yourself for all the misfortunes. â€Å"Her ignorance made her mute. It was infuriating.†(775). The deception of Madame Pouchet was unmasked by Diouana and she detest being lured by her employers. Madame Pouchet’

The Galapagos Islands Essay Example for Free

The Galapagos Islands Essay The Galapagos Islands were first inscribed as a World Heritage site in danger in 1978. This was extended in 2001 and they were again inscribed in June 2007. The islands are found on the Pacific Ocean, 1000 kilometer from the South American continent, they are in Ecuador. They are 19 islands which lie on equator so their seasons vary very little. They have been called a unique â€Å"living museum and showcase of evolution†. (www. whc. unesco/org/en/danger). The islands were formed by seismic and volcanic activities which are still ongoing processes. These together with the extreme isolation of the islands, led to the development of unusual animal life such as the land iguana, giant tortoise and many types of finch. The finch inspired Darwin’s theory of evolution following his visit in 1835. The islands are referred to as an archipelago as they are very isolated from the nearest continent and the islands themselves are separated from one another. This separation and differences in climates favors evolutionary change. As a result, populations that are related follow separate evolution tracks leading to emergence of various species and even further diversification. The species so formed become very susceptible to changes in the environment. ( www. darwinfoundation. org) The uniqueness of the island lies in its marine and land ecosystems, and presence of flora and fauna endemic to the islands and in most cases found nowhere else in the world. The marine ecosystem is composed of both cold and warm water current systems, marine landscapes â€Å"bajos†- these are underwater mountains formed by volcanic activity they rise almost to the oceans surface. Some of the coastal animals found in the Galapagos marine reserve are sea lions, fur seals, albatrosses, several species of booby, frigate bird species, sea turtles marine iguana, penguins and flightless cormorants. (www. darwin. foundation. org) The land habitats of the Galapagos are mainly determined by their vegetation which is in turn determined by the local climate. The vegetation of the area is strongly zoned by altitude. The land ecosystem has such animal species as land iguanas, land snails, rice rats among others. The Galapagos contain a total of 560 native species of flora,180 are endemic (www. darwinfoundation. org). Some of the plant species include scalesia, opuntia cacti and the Galapagos rock-pursane and other lesser known species. Human intrusions threatening the area Threats to this hub of diversity are mainly in the form of fishing and tourism by humans. In the 1990s, fishing led to a big decline in some of the marine species such as sea-cucumbers and sharks. Then, the fishermen would fish the sharks just for their fins and the remainder of the shark’s body would go to waste. Fishing is the second most important economic activity in the region and marine resources were overused by such practices as illegal fishing and over fishing. The dangers presented by the Galapagos fisheries are-: i) Large international vessels fishing around the Galapagos pelagic zones and inside the Galapagos Marine Reserve (GMR) which is illegal. Long-lining and use of large seines are modern high-technology methods with devastating effects of depleting marine species. (www. darwinfoundation. org) ii) There has also been a rapid influx of poor fishermen from the mainland of Ecuador who serve the interests of mainland fishing companies and middlemen buyers. The fishermen are provided with capital in the form of a loan by the fishing companies to buy boats and equipment. The fishermen then sell the catch to the companies; the catch is later sold in the international market especially the Asian market. The influx has led to the human explosion being experienced in the islands and also the immigration brings with it invasive species which compete with the natural species of the islands decreasing their survival chances. ( www-darwinsfoundation. org) Tourism is the leading economic activity in the Galapagos Islands. Tourism has grown economically at 14% per year and this has lead to the Galapagos experiencing drastic, social, economic, cultural and ecological changes. (www. galapagos. org) The dangers that immigration poses include increased pollution, overuse of resources and eventually a charge in climate and introduction of invasive species. A change in climate will lead to loss of some of the species in the island. Invasive species refers to alien plants, diseases, insects and other organisms that people bring inadvertently to the islands. There are now 1,321 introduced species, compared to 112 identified in 1990. These include 748 species of introduced plants compared to 500 species of native plants and at least 490 species of introduced insects. The risk of the arrival of pathogens such as the West Nile virus, insect pests, and new predators is now high-: Dengue-carrying mosquitoes and some avian diseases are new arrivals in the islands. (www. galapagos. org,2007) Existing protection areas The Galapagos Islands have several protection areas. The Galapagos National Park (GNP) is one of this. 97% of the area covered by islands was designated as a national park in 1959. The lands not included were the settlement areas. Later in 1967, a park service Galapagos National Park service (GNPS) was set up to oversee management and administration of the park. The GNP is made up of 13 large islands, 17 small islands and 40 rocks. (www. galapagos. org/). The park authorities educate the visitors and enforce the laws and regulations of the park. The GNPS also oversees the management and administration of the Galapagos Marine Reserve (GMR) which was set up in 1998, another protection area. The GMR’s function is to protect the waters surrounding the archipelago. 3000 species of marine plant and animals are found in the GMR. The necessity of the GMR became apparent when in the 1990s fishing activities around the archipelago increased and almost had devastating effects on the marine species due to the high demand of both sea cucumbers and sharks’ fins. The GNPS also approves itineraries. This ensures that no one place is too frequently visited. This serves to distribute tourism to all the islands, decreasing chances of harm to the environment. The GNPS works together with the Charles Darwin Foundation, now known as the Galapagos Conservancy. The foundation provides the scientific and technical know-how required in maintenance of the natural biodiversity and ecosystems of the islands. Other protected areas include Sangay National Park, Limoncocha Reserve, and Antisana Ecological Reserve which has the Antisana volcano that is 5758 meters high. The reserve was created in 1993. The Cuxabeno Forest Reserve is another protected area, for two thirds of the year the forest is submerged in water and when it is not, it is made up of dry futbol fields (www. ecuador. com/,2007). It was established in 1979. Part of the 6000 square Kilometer rain forest makes up part of the Amazon Rain forest. There are indigenous people found in this forest whose contribution to reservation is through jungle tours and eco-tourism. Existing efforts in Galapagos to protect and preserve the area include:- i) Registration of fishermen to fishermen’s cooperatives. This has enabled the monitoring of fishermen’s activities and from this an estimate of how much fishing is going on can be got. Also, it makes it easier to track illegal fishing. ii) Establishment of the Galapagos Marine Reserve in March 1998. In this area, all fishing is banned. The area covered by the GMR was expanded TO cover 40 miles around the whole archipelago. These are also zones of protection around the islands. All these are patrolled by GNPs park rangers. The sea shepherd conservation society assists with carrying out patrols in the service. iii) Approving the designation of the Galapagos Archipelago as Particularly Sensitive Sea Area (PSSA) by the Marine Environment Protection Committee(MEPC). PSSA is defined by the International Marine Organization (IMO) as â€Å"an area that needs special protection through action by IMO because of its significance for recognized ecological socio economic or scientific reasons and because it may be vulnerable to damage by international shipping activities†. ([IMO,2001]www. dorwinfoundation. org) iv) Introduction of residence controls which decrease immigration and in turn lower the flow of alien species. The aim is to curb population growth. The controls are however difficult to implement because it is difficult to determine genuine residents and those who come and go but have permanent residence elsewhere. (www. law. emory. edu/ ) v) Education of residents, tourists and Galapagos policy makers on how beneficial sound conservation, practices, polity and sustainable economic activities are for example finding alternative viable economic activities for the local fishermen. vi) The success of Project Isabela. This project has seen a large area being freed of feral goats and pigs. Subsequently there has been an increase in Galapagos’s rails. Areas that had been previously degraded have now become resting areas for petrels and re-establishment of vegetation like tree-terns and endemic scalesia has occurred. Also native invertebrates thought to be extinct are now being identified (www. darwinfoundation. org, 2007) vii) Successful breeding programs for tortoise run by the Charles Darwin Foundation and GPNS has led to repopulation of some islands with their native reptile species. The giant tortoise was becoming extinct due to hunting by humans and other animals. (www. galapagos. org) viii) Inclusion of various sectors in the management board of the Galapagos National Park service has been instrumental in bringing about an attitude of conservation and preservation. At first the local people felt that the government was only concerned about plant and animal life. The multisectoral approach involves key players in fishing, tourism and conservation sectors and also the local person. (www. galapagos. online/) Including the local people has helped to enhance the concept of conversation because the local people no longer feel neglected. Should human intrusion go unchecked, the loss will be great. Maintenance of the rich biodiversity of the islands is achievable of the ecosystem can support sustainable economic use where the local people, conservationist and players in tourism and fishing industry feel their needs have been put into consideration. An example of how the biodiversity can lost is seen in the fact that the present tortoise population is very small. Poaching, destruction of habitats and the presence of invasive species are the main dangers to the tortoise population. (www. galapagos. org, 2007). Though the near extinction of the giant tortoise caught the attention of people and the process was reversed the giant tortoise is not out of the woods yet, and the work of repatriation needs support. In the process of poaching the tortoise, various invasive species which trampled on the tortoise’s habitat were limited and multiplied faster than the tortoise would, leading to destruction of the tortoise habit. The mangrove finch is another species being driven towards extinction. Again the greatest threat to be mangrove forests and the finches is the exploding human presence in the Galapagos. (http://www. galapagos. org/about. html). Increased activity among humans increases the risk of disease further especially avian pox, black rats, cats, fire ants the parasitic fly philornis. All threaten the mangrove finch as well as vulnerable species in Galapagos (http://www. galapagos. org/about. html. ) For the mangrove finch to be saved there has to be study of the mangrove finch and its habitat. Activities that would require support in the mangrove finch conservation project include: ? Creating potential captive breeding facilities for the mangrove finch. ? Resting degraded mangrove finch ecosystem, including establishment of new mangrove forest plots. ? Releasing the captive-bred birds to sites on Isabela and Fernandina islands where the mangrove finch once thrived. For the future generations to be able to see and be part of the abundant biodiversity in the Galapagos islands the necessary funds and a coalition of leadership are needed to successfully conserve and preserve the world heritage site. Otherwise, we risk losing not just an area rich in natural biodiversity but a site of origin of human philosophy and in the process part of the human race. Because of ecological interdependence, there can be no climate changes that will affect animals and plants only, whatever adverse effects will affect flora and fauna will also affect the human race. This means that no part of the ecosystem will be spared the price of not doing all that is necessary to protect and preserve the balance of nature. Conclusion Islands are generally smaller than continental areas but are basically more or less the same with similar social, economic and ecologic changes happening. This then means that islands can and should serve as a model to the rest of the world for these changes (www. darwinsoundation. org). In coming up with solutions to the Galapagos problems we are more or less coming up with a prototype to solve problems that will occur in other continents of the world, but if we cannot resolve the issues then it means that we will also fail in achieving a society where there is a balance of nature and social economic sustainability in the rest of the world. References Charles Darwin foundation, Galapagos Risk; Ground Breaking Analysis Produced retrieved July 6 from http://www. org/en/library/pubs/2007/galapagos Galapagos Conservancy, ‘Breaking News: Galapagos in â€Å"Danger† Retrieved July 6 from http://www. galapagos. org/about. html. ‘Protected areas’ Retrieved July 7 from http:www. ecuador. com/protected-areas UNESCO, Galapagos islands, Retrieved July 7 from http://whc. unesco. org/en/danger UNESCO World Heritage in Danger List July 7 from http://whc. unesco. org/en/danger/ .

Prospects and Perception of Islamic Life Insurance

Prospects and Perception of Islamic Life Insurance Chapter 1 Introduction Background to study: Insurance is a financial industry which has surfaced as a colossal industry for both in Muslim and Non Muslin world. In Conventional Insurance there are many elements, activities and procedures which are considered unethical, unlawful and unislamic by majority of Islamic scholars. Elements such as uncertainty, gambling and excessive interest are the main culprits. (Khair Bakhsh, 2009). For the satisfaction of Muslim concern, market experts and Islamic scholars introduced an insurance with the name of Takaful.The increase in demand of Takaful system and the presence of large markets for its products is compelling the entitled authorities to introduce it in Pakistan as soon as possible. Problem Statement: What are the prospects and perception of Islamic life insurance in Peshawar? Purpose of the study: To review why convention system is prohibited in Islam To compare Islamic Life Insurance (Takaful) with Contemporary Life Insurance. To find out justification of an Islamic Life Insurance (Takaful) Analysis of prospects of Takaful in Peshawar City. Methodology Applied Research: In this research I will be studying existing Islamic life insurance system and adding no new finds to body of knowledge. Scheme of study Type of investigation: This is a descriptive study: The format, which will be followed in this study, is to find out justification of an Islamic Life Insurance and what are its prospects in Peshawar. Cross-sectional Data: In this research I will observe and study secondary data regarding Islamic Life Insurance and Conventional life Insurance system. Unit of Study: My research unit of analysis will be organization Study Settings: Field Study: Study will be done in natural settings in which variables will not be controlled. Researchers interference: In this study researchers interference will be minimal and has no direct interference with the Islamic life insurance organizations because I am not allowed to interfere in the organizations. Methodology: The methods I will be using in the report are both Primary and Secondary data collection. Secondary Data: For this research I will use secondary data. Sources: Internet Leading newspaper articles Books related to Islamic life Insurance (Takaful) Research instruments: The instruments which will be used in my research to collect primary data are: Observations Questionnaires. Sample Size: I will be distributing questionnaires. Sampling Techniques: The sampling technique will be simple random sampling that will help in reducing the biasness factor in the research. Limitations: The scope of my research will be limited to students of universities in Peshawar because of time and other limited resources. Scheme of the report: The report will consist of the following parts. Introduction Literature Review Findings Analysis Conclusion and Recommendations Literature survey Meaning of Takaful: Takaful is a form of mutual assistance (Taawun) strengthened by aiding the ones who are in problems and deserve to be helped.(Dr.Masum) (2009). According to him, Islamic Scholars have begun to accept and conclude to the viewpoint that Takaful is according to Shariah principles. Numerous Islamic conferences are being held and Shariah Councils are emphasizing by creating awareness amongst the Muslims that Takaful operations are free from unIslamic elements thus the development of Takaful in the market is to cater to the needs of Muslim by providing them products and services in accordance to Islam. â€Å"Overtime, greater understanding on the concept of Islamic Insurance has emerged as the concept of Takaful, based on the contract of Tabarru (donation) and Mudarabah profit sharing.† â€Å"Takaful is an alternative form of Conventional Insurance based on the concept of trusteeship and cooperation inspired by the beliefs of the followers of Islamic teachings. Murtaza Ali (2007). It can be concluded that takaful is an Islamic way of dealing with uncertainties via mutual assistance and it is social scheme developed on the principals of brotherhood, solidarity and mutual assistance. Takaful is rooted from an Arabic word Kafal, which means that ones needs should be taken care of. According to this scheme participants jointly agree to bind themselves against damages caused by hazards. â€Å"Takaful is a legally binding agreement between all the participants of the scheme to pay any of the members who suffers a loss as specified in the Takaful certificate†. (Dr.Masum)(2009). Muhaimin Iqbal (2005), Abdul Rahim, Wahab and Kabir Hassan explain Takaful as a scheme that is derived from the concept of Taawun and the concept of Takaful is similar to Conventional mutual risk sharing. Takaful has a fixed maturity period and is considered long term saving tool. Apart from giving benefits of return it also provides a mutual financial assistance among participants. â€Å"A Programme that pools efforts to help the needy in times of need due to immediate deaths or mishaps resulting in personal injury or disablement†. (Bank Negara Malaysia) Scholars like Dr.Yusof Qaradawi (July 2007) state â€Å"Our observation that the modern current practices are objectable Islamic ally does not mean that Islam is against Insurance: it only opposes the means and methods.† According to the author the Islamic insurance companies will use the contract of donations and provide compensation and the operation of the company shall not get engaged in any unislamic elements. HISTORICAL PERSPECTIVE; â€Å"Muslims were involved in Marine activities in the Mediterranean and Indian Ocean from the seventh century on†. Chaim-Vardit (2009).† â€Å"The rough model of Takaful was practiced by Arabian tribes, holding to the principal of pooled resources to help the needy on the voluntary basis† Masum Billah (2001). Tamim become the first insurance term in Arabic only in 20th century and it is believed that Ibn Abidin, a Hanafite Jurist who died in 1836,is the First Muslim to coin name Insurance Sukara (security) influenced by Italian term Siguare and Turkish Sigorta. Chaim-Vardit (2009). Merchants of Mecca used to form a group of Mutual funds with a purpose to help the victims or survivors of natural hazards during their commercial ventures into Syria, Iraq and other countries. Such a practice was supported and even contributions were made by Prophet Muhammad (P.B.U.H) while trading with the capital of Hazrat Khadija. Aziz-Abdul (2005) â€Å"The period lasting from the fall of Rome until the Dawn of Islam was the darkest, most corrupt and unsettled period in the known history to man. Hence the Dawn of Islam removed darkness from the face of life and brought the environment of security and stability to the areas which came under the influence of Islam.† According to Chaim-Vardit, Shariah recognizes several transactions and institutions which function in a way similar to certain type of Insurance. The typical ones are: Daman (guarantee) is synonymous to â€Å"Kafala† is used with risk or responsibility that one bears with regard to property of which one enjoys profit. Daman Khatar al Tariq (guarantee against travel hazards). In this type of transaction, the person himself wishes to be compensated for a future possible loss. Wala al Muwalat-This type of transaction was prohibited by Prophet Muhammad (P.B.U.H). The problem was this type of transaction established new ties, as strong as blood ties, outside the family was unbearable. Diya (blood money)-compensation to victim or victims family for unintentional killing or bodily injury. Mudaraba-is not mentioned in Quran and there is much doubt whether it is mentioned in Hadith Zakat-means growth and purity. It is often mentioned as equal to modern social Insurance and there have been modern attempts made in Islamic states as Saudi Arabia and Pakistan to apply Zakat. The institution of Waaf (endowment)-the property endowed as Waaf was intended to support the poor, staff of mosques, hospitals, to maintain city facilities and the two holy cities. Jizya-tax levied on non-Muslims residing in Islamic State and provides then with security for their lives and property. Holy Prophet (P.B.U.H) emphasised that a Muslim should protect itself from hazards and risks via transfering the risk through Takaful Model.The life of a muslim is Controlled and destiny by Allah (S.A.T) but it does not mean that a Muslim cannot protect itself but indeed a Muslim in Islam should gurad itself from misfortunes, hazards, risks and uncertanities.Dr.Masum (2001). Types of Takaful Structures: â€Å"There is no single â€Å"best† model that exists for takaful. Shariah scholars worldwide concur on fundamental components that characterize a takaful scheme, yet in their judicial opinions (fatwas), operational differences are tolerated as long as they do not contradict essential religious tenets.† Ms Shakun Ashoka Raj (2007). There has been a tremendous research done on the takaful models which includes work of prominent authors like Dr.Masum (2001), Hassan, Rahim and Wahab (May June 2007). According to Hassan, Rahim and Wahab (2007) for the Mudarabah contract to be allowed and carried in Islam requires a number of elements to be present: The capital provider (participant); The entrepreneur (takaful operator); Capital an appropriate activity; Profit and loss sharing and offer and acceptance. In the mudaraba contract, the two parties know as provider (rab ul maal) and the entrepreneur or takaful operator (mudarib) operates on a joint venture basis. †An investment on a Mudarabah basis of 100 should at the end of the period give more then 100 to be termed as profit and for the operators to share that.† The other takaful model is known as agency or wakala model. On the basis of this principal, a person delegates his right or business to the other people/person to act as his agent or wakil. The agent is responsible to contribute his knowledge, skills, and abilities in performing the tasks assigned to him in the best manner. According to Dr.Masum (2001) in the Wakala model the salary of the agent who rendered the services is subtracted against the fool of funds. The net funds will be used for the purpose of investment and profits will be distributed accordingly. Similarly author Rahim, Wahab and Hassan â€Å"Under a typical wakala model, the Tabarru (donation) remains the property of the participants unless consumed, as they have the right to receive the surplus back and therefore it becomes a conditional gift.† Tijari model (business) commonly uses both the pure Mudarabah and modified Mudarabah approaches. Dr.masum is of the opinion, that modified Mudarabah approach is used where deduction of expenses is taken into consideration and as result more expensive premium is charged from the participants in order to cover the operational expenses while on the other hand Pure mudarabah approach is used where there are no operational expenses charged. Waqf model-this model operates on non-profit basis that collects donation from individuals or firms who willingly want to contribute something positive to the society. Social organizations and enterprise are engaged in such type of activity. Shakun Ashoka Raj (2007). Concepts of beneficiaries in Takaful It is vital to test the beneficiary in the policy inorder to find that whether the beneficiary is the right person to be tranferred the benefits.In order to do so the following concepts are under taken : Al-Wasiyah (bequest) Al-Mirath (inheritance) Al-Milkiyah (ownership) In the Takaful Model if the policy holder outlives the policy duration then under such circumstances the policy holder is entitled for the benefits and he is the only owner but in Waqf model the sole owner is Allah (S.A.T) and no one can claim the property or benefits. Dr.Masum (2001). After death of the policy holder the following stages are inoccured before the distribution of benefits of the policy. Wealth heald by the policy holder is adding with total benefits If there are any debts left by the policy holder then from the total weath those debts are paid off . For the remaining the funeral expenses will be deducted. The remaining property or any thing left is disrtibuted under the principals of Al wasiyah and Al mirath. Al Wasiyah Under the islamic principal the policy holder can give away via will 1/3 of the property. This is to reduces injustice that may be caused by the policy holder by giving his benefits not to his legal heirs . Al Mirath After making payments of loan taken by Policy holder, excluding funeral expenses from the remaining property and cash left by the deceased and executing his will, the remaing benefits ,property and cash left is distributed among the legal heirs of the policy holder via Islamic methods. CONVENTIONAL LIFE INSURANCE INSURANCE: Insurance is a medium via which people transfer the burden of uncertainty (financial loss) to the insurer, for an agreed financial attention known as â€Å"Premium†. In return, the issuer promises to provide financial compensation to the insured for particular loss occurring. The clients of the policy are known as policyholders. Human life is exposed to risks of death and disability due to natural disasters and accidents. Property possessed by man is exposed to various man made and natural hazards. Simultaneously man himself is exposed to different diseases, deadly viruses, the cure for which involves huge expenses. A family might have to face serious financial and moral hazards as a human life is lost or a person is disabled temporarily or permanently. If an individuals property is damaged, it might result in decline in income of the individual. Life insurance gives protection to an individual during his/her lifetime and after his death too. So we can say that it is an agreement that guarantees the payment of agreed amount of monetary benefit to the insured. There are number of companies offering Life insurance policies. The more the time period of the policy the greater its benefit e.g. if a person purchases a policy for the period of 10 years, he will get its benefit after 10 years but if he dies during this time frame, his family will get its benefit. The insurance company reviews variables that are likely to affect the health and how long and individual lives after receiving an application by individual for life insurance policy. Actuarys Statistical Analysis is performed by a person know as â€Å"Actuary† who determines whether the individual is a good â€Å"risk† to insure. Insurance premium is calculated, the older an individual, the higher the life insurance premium to be paid. Insurance premium can also be higher if an individual has health issues like higher cholesterol. If the insurance company agrees to provide insurance the agent will deliver the life insurance contract. The contract will include: The amount of money to be paid when the policyholder dies. How long the contract lasts. The amount of premium that needs to be paid by the policyholder. The policyholder will need to name the beneficiary to whom the benefit of the policy will be transferred in the event of death of policyholder. HISTORICAL DEVELOPMENT OF INSURANCE: Insurance is as old as the development of human society. In a society there are two types of economies Money economy Natural economy. Natural economy is more old then the money economy where people form community to help each other. For example if the house of a person gets burnt, the community members will pool in funds and reconstruct the house. Money economy practiced the transfer or distribution of risk by the Chinese and the Babylonian traders in the 2nd and 3rd millennium B.C. Achaemenian monarchs of Iran were the first to insure their people and that process was registered in the governmental notary offices. Life Insurance primarily established to provide protection against risk and catastrophes to people who were dieing very early, people who were aged and people who as a result of accident were disabled. This was practiced made possible by sharing and transferring risk with other individuals of the society. The idea of insuring oneself against risk is as old is mankind. Early times in England, societies were formed. Relief to the family of members of the societies would be given by making little sum of payments, if the grains of the farmers were damaged. The first life insurance company was established in England in 1705 and named the Amicable Society for Perpetual Assistance. Life insurance developed from these small beginnings into colossal industry, which gives people sense of security they require to maintain financial stability, moral and faith against inflation, deflation, wars, boom, panic and all sort of devastation. Life insurance gives individuals sound financial back up to move forward as it is based on scientific principles. Life Insurance companies were the only companies to pay their dues fully and survive the crisis of recession while the banks and other investment companies failed to do so. The purpose of selling life insurance is to make sure that it provides fresh air to people to start a life. In the larger view the life insurance policy becomes the reason for the beneficiary to begin a new life. Life insurance does active saving, utilization of funds and reserves for hazards and opportunities. It is a medium of savings, protection and growth and it has given people peace of mind and financial soundness. TYPES OF LIFE INSURANCE There are many different classification of life insurance each satisfying different need of individuals. Life insurance can be broadly divided into two main types: Term Assurance Whole Life Assurance Term Assurance: It is the least expensive Insurance and is available in various forms. This form of insurance is opted if the individual cannot afford other types of insurance or when temporary protection is needed. The premium from this type of insurance is free from element of investment. Term Assurance policy in case of death of policy holder during the specified years is bounded to provide lump sum amount of agreed money but if the individual outlives, then in such circumstances the contract is ceased and no money is to be provided to the policyholder. Term Life Insurance policy lengths for: One-year term policy- promises to pay the beneficiaries of the policyholder the agreed amount of money if the insurer dies within one-year tem policy. Five years promises to pay the beneficiaries of the policyholder the agreed amount of money if the insurer dies within five-year term policy. Ten years, fifteen and twenty year term policy is also known as long term policy. TYPES OF TERM ASSURANCE: Renewable term life policy –In this term life policy, the policyholder automatically qualifies to continue the policy when the specified time of the policy ends. Non-Renewable term life policy- this term life policy, the policy holder does not automatically qualifies to continue the policy when the specified time of the policy ends instead the individual has to re-qualify for the policy by undergoing physical examination in order to determine the health condition. Convertible term life policy-In this type of term policy the insured has the choice to covert this type of policy into permanent life insurance policy into variable insurance, whole or universal life insurance. Non-Convertible term life policy- simply means that policyholder cannot switch the policy to another type life insurance policy. WHOLE LIFE INSURANCE: This policy last the whole (entire) life of the insured. If the policyholder stops paying the premium he/she can get the benefit paid till date. Because of this reason it is an expensive life insurance policy. For example the funeral policy in which expenses are covered for the funeral of the person passed away. Full payment for the policy is taken at the time of purchases of policy. Whole life insurance policy can be divided into two types: Ordinary Life Insurance Limited Payment Life Insurance Ordinary life insurance: It is also know as straight life insurance. In this type of insurance policy the insurer is give lifetime security. For example if the insurer is alive at 100, then he is to be paid the benefit if the policy or the agreed amount of money. Under this policy of life insurance the policyholder is charged high premiums in the start of the policy and charged less premium during the last years of the policy. The life insurance company invests the premium of the policyholder to accumulate a cash surrender value. The policyholder can withdraw from the policy by taking the cash value or borrowing cash value at lower interest rates. The cash value is relatively small in the start of the year and increases with years. LIMITED PAYMENT LIFE INSURANCE: This life insurance policy is also known as â€Å"limited pay life insurance† in which individual pays for the specific time period and enjoys the policy for the rest of his/her life. The face amount of the policy is paid tax free to the beneficiaries the policyholder mentioned. This face amount can be paid on monthly basis or in lump sum amount. If the Policyholder mentioned to make payment to the beneficiary on monthly basis then the policyholder has four options to choose from: Life Income-In this policy the beneficiary of the policyholder is paid on the monthly basis as long as the beneficiary lives. Fixed Period Income-In this type of policy, the policyholder asks the insurance company to pay the beneficiary after his death the proceeds in equal amount over the period of ten years. The years determined are dependent on the wish of the policyholder. Fixed Amount Income-In this type of policy the policy holder asks the insurance company that after his death the nominated beneficiary should be paid lets suppose Rs.1000 a month till the proceeds are exhausted Interest Options-In this the policy holder asks the insurance company that after his death the benefit of the policy should be reinvested by the insurance company and the interest from the investment made should be provided to the nominated beneficiary each year. OTHER FORMS OF LIFE INSURANCE: Endowment Life Insurance- This policy is for a specific time period. The face value is paid to the nominated beneficiary if the policyholder dies during the specific period but if he is alive then the policyholder is paid the benefit of the policy. Variable Life Insurance-This policy is for the whole life. The policyholder is given option to decide the amount he wants to invest in life insurance and the amount he wants to invest in other investment opportunities like buying stocks. It has a guaranteed death benefit, which is based on forecasted interest rates. Theses rates are not fixed indeed vary from company to company. Universal Life Insurance-This policy charges less premium in the start but does not provide death benefit or cash value as this policy is flexible in terms of premium payments and timing. Second To Die Life Insurance- This policy is designed for couples.(married).The benefit of the policy is provided to the heirs of the policyholders only when the surviving spouse dies. Juvenile Life Insurance-The purpose of this policy is to provide safeguard to the children. The guardian or the parent of the child purchases policy in order to secure the minor from mishaps. Modified Life Insurance Policy-In this life insurance policy higher premium are charged at the later years of the specified time. It is suitable for those individuals who believe that their salary/income will increase in the future. METHODS FOR PROVIDING LIFE INSURANCE PROTECTION: There are two methods that are actively used to provide life insurance to individuals. Annual Renewable Term Level Premium method Annual Renewable Term: This type of life insurance policy has overcome the challenge of insurability simply meaning that the policyholder can renew the policy without under going medical examination or providing sound health evidence. Because of poor health or other mishaps the insurer might not be allowed to renew the policy. So annual renewable policy (ART) ignores the insurability element, they simply pay the renewal premium. The policy period varies from 10 to 30 years and for the till the age of 95 mostly. In such policy the premium to be paid is much higher then other life insurance policies. The more the age the higher the premium to be paid and thus the greater the return on the policy. The premium is calculated by determining the death rate of each age group. For Example: A group of 1000 males (non-alcoholic) at the age of 40 wants to get a life insurance for $1000.The death rate of males at the age of 40 is .332% out of 1000.This means that the insurance company would have to pay $.3220 for the death claim. The insurance company would have to collect $.3.20 from each policyholder in order to cover the death claims. The yearly renewable insurance premium increases, as the individual gets older. Premium sharply rises during the later years, because as the age grows the death rate also grows. LEVEL PREMIUM METHOD: In this type of life insurance policy the premium remains the same for the agreed number of years. The time frame varies from 10, 15, 20 to 30 years. This life insurance policy provides insurance to age 100.If the insurer survives till the age of 100 then the face value of the policy is paid to the policyholder. The premium charger in the early age is higher in order to cover for the morality expenses. Level Premium method is also know as ‘Legal Reserve† because the money invested by the company is according to the state law. The state requires the company to maintain a minimum amount of liquid so that it is able to pay for the agreed claims. The legal reserve that the insurance company maintains is equal to the present value of the future death claims minus present value of future premiums. The main objective of the legal reserve is to provide lifetime security. The policyholder has an option to withdraw from the policy by just taking the cash value which is less then the legal reserve because of deductions of expenses like sales. UNISLAMIC ELEMENTS IN CONVENTIONAL LIFE INSURANCE Conventional insurance contains the elements that are unacceptable in Islam which include Riba Maisir Gharar Riba –also termed as interest, is present in conventional life insurance. Loans granted by companies are charged on interest. An insured upon his death receives greater then he has paid. This is not permissible in Islam. Insurance funds stocks/bonds contain the element of interest Those who eat riba (usury) will not stand (on the Day of Resurrection) except like the standing of a person beaten by Shaitan (Satan) leading him to insanity. That is because they say, Trading is only like riba or usury, whereas Allah has permitted trading and forbidden riba. So whosoever receives an admonition from his Lord and stops eating riba shall not be punished for the past; his case is for Allah (to judge): but whoever returns to riba, are dwellers of the Fire they will abide therein. â€Å"Al-Quran, Al-Baqarah (2). 275 Maisar- It refers to gambling or game of chance. Gambling of all forms/types is prohibited in Islam. The gambler tries to win mass wealth without making an effort. When the policyholder dies after only paying a small amount of premium his/her nominated beneficiary receives the benefit in term of monetary, which the policyholder has no idea where the amount has come from. Al-Maisir is referred to in the Quran as follows: O you who believe intoxicants (all kind of alcoholic drinks) and gambling, and Al-Ansab (ways for seeking luck) are an abomination of Shaitan (Satan). So avoid strictly all that (abomination) in order that you may be successful. Al-Quran, AI-Maidah (5): 90 Uncertainty -It is an element which is termed as gharar, is prohibited in Islam. In business terms gharar means undertaking business deals which are riskier and individuals do not posses sufficient knowledge about them. A contract which contains uncertainty due to: Occurring time is not known. The amount payable is not known. Whether the payment will be accepted as agreed. HARAM/HALAL-Islam does not allow individuals to invest money in unIslamic activities. Insurance companies may invest in bonds or tobacco companies or any unethical activity which is not permissible in Islam then taking insurance from such companies is considered haram. ISLAMIC LIFE INSURANCE The transaction of an Islamic life insurance system aims to protect the life of widows, orphans and the dependents of the deceased against future risks and hazards. It follows the principal of Al-Mudaraba financing. Under this principal the insured and insurer mutually agree to co-operate. The insured dependants are protected of future hazards as well as donations are made for the uplift of poor individual who face accidents in Islamic society. This concept was present and practiced during the times of Holy Prophet (P.B.U.H). In Islamic life Insurance policy the nominee is just acting as a trustee and is not considered the absolute beneficiary. The purpose/responsibility of the individual nomination (nominee) by the assured is to distribute the benefit to the heirs of the deceased under the principal pf Mirath and Wasiyah. In Islamic life insurance policies there are two situation in which the benefits of the policy are transferred i) the insurer can claim from the insurer the benefi ts if he outlives the time mentioned in the policy a) the paid premiums b) the profits made upon the paid premiums and c) the dividends/bonus made according to the company policy. In the other situation if the insured is not alive or passed away during the policy, the benefits are transferred to the nominee (selected by insured) and it is mandatory for the nominee to distribute the benefits of the policy among the heirs of the policyholder. The benefits include a) paid premium b) profits made on the paid premiums c) bonus/dividends make the company policy and d) donations from the companys charitable funds according to the policy selected by the assured. The benefits of the Islamic life insurance policy are not just claimed by individuals who face natural death/accidents but the benefit are also provided to people insured and passing in unlawful death example suicide/murders. The reason for that is life and death can only be det Prospects and Perception of Islamic Life Insurance Prospects and Perception of Islamic Life Insurance Chapter 1 Introduction Background to study: Insurance is a financial industry which has surfaced as a colossal industry for both in Muslim and Non Muslin world. In Conventional Insurance there are many elements, activities and procedures which are considered unethical, unlawful and unislamic by majority of Islamic scholars. Elements such as uncertainty, gambling and excessive interest are the main culprits. (Khair Bakhsh, 2009). For the satisfaction of Muslim concern, market experts and Islamic scholars introduced an insurance with the name of Takaful.The increase in demand of Takaful system and the presence of large markets for its products is compelling the entitled authorities to introduce it in Pakistan as soon as possible. Problem Statement: What are the prospects and perception of Islamic life insurance in Peshawar? Purpose of the study: To review why convention system is prohibited in Islam To compare Islamic Life Insurance (Takaful) with Contemporary Life Insurance. To find out justification of an Islamic Life Insurance (Takaful) Analysis of prospects of Takaful in Peshawar City. Methodology Applied Research: In this research I will be studying existing Islamic life insurance system and adding no new finds to body of knowledge. Scheme of study Type of investigation: This is a descriptive study: The format, which will be followed in this study, is to find out justification of an Islamic Life Insurance and what are its prospects in Peshawar. Cross-sectional Data: In this research I will observe and study secondary data regarding Islamic Life Insurance and Conventional life Insurance system. Unit of Study: My research unit of analysis will be organization Study Settings: Field Study: Study will be done in natural settings in which variables will not be controlled. Researchers interference: In this study researchers interference will be minimal and has no direct interference with the Islamic life insurance organizations because I am not allowed to interfere in the organizations. Methodology: The methods I will be using in the report are both Primary and Secondary data collection. Secondary Data: For this research I will use secondary data. Sources: Internet Leading newspaper articles Books related to Islamic life Insurance (Takaful) Research instruments: The instruments which will be used in my research to collect primary data are: Observations Questionnaires. Sample Size: I will be distributing questionnaires. Sampling Techniques: The sampling technique will be simple random sampling that will help in reducing the biasness factor in the research. Limitations: The scope of my research will be limited to students of universities in Peshawar because of time and other limited resources. Scheme of the report: The report will consist of the following parts. Introduction Literature Review Findings Analysis Conclusion and Recommendations Literature survey Meaning of Takaful: Takaful is a form of mutual assistance (Taawun) strengthened by aiding the ones who are in problems and deserve to be helped.(Dr.Masum) (2009). According to him, Islamic Scholars have begun to accept and conclude to the viewpoint that Takaful is according to Shariah principles. Numerous Islamic conferences are being held and Shariah Councils are emphasizing by creating awareness amongst the Muslims that Takaful operations are free from unIslamic elements thus the development of Takaful in the market is to cater to the needs of Muslim by providing them products and services in accordance to Islam. â€Å"Overtime, greater understanding on the concept of Islamic Insurance has emerged as the concept of Takaful, based on the contract of Tabarru (donation) and Mudarabah profit sharing.† â€Å"Takaful is an alternative form of Conventional Insurance based on the concept of trusteeship and cooperation inspired by the beliefs of the followers of Islamic teachings. Murtaza Ali (2007). It can be concluded that takaful is an Islamic way of dealing with uncertainties via mutual assistance and it is social scheme developed on the principals of brotherhood, solidarity and mutual assistance. Takaful is rooted from an Arabic word Kafal, which means that ones needs should be taken care of. According to this scheme participants jointly agree to bind themselves against damages caused by hazards. â€Å"Takaful is a legally binding agreement between all the participants of the scheme to pay any of the members who suffers a loss as specified in the Takaful certificate†. (Dr.Masum)(2009). Muhaimin Iqbal (2005), Abdul Rahim, Wahab and Kabir Hassan explain Takaful as a scheme that is derived from the concept of Taawun and the concept of Takaful is similar to Conventional mutual risk sharing. Takaful has a fixed maturity period and is considered long term saving tool. Apart from giving benefits of return it also provides a mutual financial assistance among participants. â€Å"A Programme that pools efforts to help the needy in times of need due to immediate deaths or mishaps resulting in personal injury or disablement†. (Bank Negara Malaysia) Scholars like Dr.Yusof Qaradawi (July 2007) state â€Å"Our observation that the modern current practices are objectable Islamic ally does not mean that Islam is against Insurance: it only opposes the means and methods.† According to the author the Islamic insurance companies will use the contract of donations and provide compensation and the operation of the company shall not get engaged in any unislamic elements. HISTORICAL PERSPECTIVE; â€Å"Muslims were involved in Marine activities in the Mediterranean and Indian Ocean from the seventh century on†. Chaim-Vardit (2009).† â€Å"The rough model of Takaful was practiced by Arabian tribes, holding to the principal of pooled resources to help the needy on the voluntary basis† Masum Billah (2001). Tamim become the first insurance term in Arabic only in 20th century and it is believed that Ibn Abidin, a Hanafite Jurist who died in 1836,is the First Muslim to coin name Insurance Sukara (security) influenced by Italian term Siguare and Turkish Sigorta. Chaim-Vardit (2009). Merchants of Mecca used to form a group of Mutual funds with a purpose to help the victims or survivors of natural hazards during their commercial ventures into Syria, Iraq and other countries. Such a practice was supported and even contributions were made by Prophet Muhammad (P.B.U.H) while trading with the capital of Hazrat Khadija. Aziz-Abdul (2005) â€Å"The period lasting from the fall of Rome until the Dawn of Islam was the darkest, most corrupt and unsettled period in the known history to man. Hence the Dawn of Islam removed darkness from the face of life and brought the environment of security and stability to the areas which came under the influence of Islam.† According to Chaim-Vardit, Shariah recognizes several transactions and institutions which function in a way similar to certain type of Insurance. The typical ones are: Daman (guarantee) is synonymous to â€Å"Kafala† is used with risk or responsibility that one bears with regard to property of which one enjoys profit. Daman Khatar al Tariq (guarantee against travel hazards). In this type of transaction, the person himself wishes to be compensated for a future possible loss. Wala al Muwalat-This type of transaction was prohibited by Prophet Muhammad (P.B.U.H). The problem was this type of transaction established new ties, as strong as blood ties, outside the family was unbearable. Diya (blood money)-compensation to victim or victims family for unintentional killing or bodily injury. Mudaraba-is not mentioned in Quran and there is much doubt whether it is mentioned in Hadith Zakat-means growth and purity. It is often mentioned as equal to modern social Insurance and there have been modern attempts made in Islamic states as Saudi Arabia and Pakistan to apply Zakat. The institution of Waaf (endowment)-the property endowed as Waaf was intended to support the poor, staff of mosques, hospitals, to maintain city facilities and the two holy cities. Jizya-tax levied on non-Muslims residing in Islamic State and provides then with security for their lives and property. Holy Prophet (P.B.U.H) emphasised that a Muslim should protect itself from hazards and risks via transfering the risk through Takaful Model.The life of a muslim is Controlled and destiny by Allah (S.A.T) but it does not mean that a Muslim cannot protect itself but indeed a Muslim in Islam should gurad itself from misfortunes, hazards, risks and uncertanities.Dr.Masum (2001). Types of Takaful Structures: â€Å"There is no single â€Å"best† model that exists for takaful. Shariah scholars worldwide concur on fundamental components that characterize a takaful scheme, yet in their judicial opinions (fatwas), operational differences are tolerated as long as they do not contradict essential religious tenets.† Ms Shakun Ashoka Raj (2007). There has been a tremendous research done on the takaful models which includes work of prominent authors like Dr.Masum (2001), Hassan, Rahim and Wahab (May June 2007). According to Hassan, Rahim and Wahab (2007) for the Mudarabah contract to be allowed and carried in Islam requires a number of elements to be present: The capital provider (participant); The entrepreneur (takaful operator); Capital an appropriate activity; Profit and loss sharing and offer and acceptance. In the mudaraba contract, the two parties know as provider (rab ul maal) and the entrepreneur or takaful operator (mudarib) operates on a joint venture basis. †An investment on a Mudarabah basis of 100 should at the end of the period give more then 100 to be termed as profit and for the operators to share that.† The other takaful model is known as agency or wakala model. On the basis of this principal, a person delegates his right or business to the other people/person to act as his agent or wakil. The agent is responsible to contribute his knowledge, skills, and abilities in performing the tasks assigned to him in the best manner. According to Dr.Masum (2001) in the Wakala model the salary of the agent who rendered the services is subtracted against the fool of funds. The net funds will be used for the purpose of investment and profits will be distributed accordingly. Similarly author Rahim, Wahab and Hassan â€Å"Under a typical wakala model, the Tabarru (donation) remains the property of the participants unless consumed, as they have the right to receive the surplus back and therefore it becomes a conditional gift.† Tijari model (business) commonly uses both the pure Mudarabah and modified Mudarabah approaches. Dr.masum is of the opinion, that modified Mudarabah approach is used where deduction of expenses is taken into consideration and as result more expensive premium is charged from the participants in order to cover the operational expenses while on the other hand Pure mudarabah approach is used where there are no operational expenses charged. Waqf model-this model operates on non-profit basis that collects donation from individuals or firms who willingly want to contribute something positive to the society. Social organizations and enterprise are engaged in such type of activity. Shakun Ashoka Raj (2007). Concepts of beneficiaries in Takaful It is vital to test the beneficiary in the policy inorder to find that whether the beneficiary is the right person to be tranferred the benefits.In order to do so the following concepts are under taken : Al-Wasiyah (bequest) Al-Mirath (inheritance) Al-Milkiyah (ownership) In the Takaful Model if the policy holder outlives the policy duration then under such circumstances the policy holder is entitled for the benefits and he is the only owner but in Waqf model the sole owner is Allah (S.A.T) and no one can claim the property or benefits. Dr.Masum (2001). After death of the policy holder the following stages are inoccured before the distribution of benefits of the policy. Wealth heald by the policy holder is adding with total benefits If there are any debts left by the policy holder then from the total weath those debts are paid off . For the remaining the funeral expenses will be deducted. The remaining property or any thing left is disrtibuted under the principals of Al wasiyah and Al mirath. Al Wasiyah Under the islamic principal the policy holder can give away via will 1/3 of the property. This is to reduces injustice that may be caused by the policy holder by giving his benefits not to his legal heirs . Al Mirath After making payments of loan taken by Policy holder, excluding funeral expenses from the remaining property and cash left by the deceased and executing his will, the remaing benefits ,property and cash left is distributed among the legal heirs of the policy holder via Islamic methods. CONVENTIONAL LIFE INSURANCE INSURANCE: Insurance is a medium via which people transfer the burden of uncertainty (financial loss) to the insurer, for an agreed financial attention known as â€Å"Premium†. In return, the issuer promises to provide financial compensation to the insured for particular loss occurring. The clients of the policy are known as policyholders. Human life is exposed to risks of death and disability due to natural disasters and accidents. Property possessed by man is exposed to various man made and natural hazards. Simultaneously man himself is exposed to different diseases, deadly viruses, the cure for which involves huge expenses. A family might have to face serious financial and moral hazards as a human life is lost or a person is disabled temporarily or permanently. If an individuals property is damaged, it might result in decline in income of the individual. Life insurance gives protection to an individual during his/her lifetime and after his death too. So we can say that it is an agreement that guarantees the payment of agreed amount of monetary benefit to the insured. There are number of companies offering Life insurance policies. The more the time period of the policy the greater its benefit e.g. if a person purchases a policy for the period of 10 years, he will get its benefit after 10 years but if he dies during this time frame, his family will get its benefit. The insurance company reviews variables that are likely to affect the health and how long and individual lives after receiving an application by individual for life insurance policy. Actuarys Statistical Analysis is performed by a person know as â€Å"Actuary† who determines whether the individual is a good â€Å"risk† to insure. Insurance premium is calculated, the older an individual, the higher the life insurance premium to be paid. Insurance premium can also be higher if an individual has health issues like higher cholesterol. If the insurance company agrees to provide insurance the agent will deliver the life insurance contract. The contract will include: The amount of money to be paid when the policyholder dies. How long the contract lasts. The amount of premium that needs to be paid by the policyholder. The policyholder will need to name the beneficiary to whom the benefit of the policy will be transferred in the event of death of policyholder. HISTORICAL DEVELOPMENT OF INSURANCE: Insurance is as old as the development of human society. In a society there are two types of economies Money economy Natural economy. Natural economy is more old then the money economy where people form community to help each other. For example if the house of a person gets burnt, the community members will pool in funds and reconstruct the house. Money economy practiced the transfer or distribution of risk by the Chinese and the Babylonian traders in the 2nd and 3rd millennium B.C. Achaemenian monarchs of Iran were the first to insure their people and that process was registered in the governmental notary offices. Life Insurance primarily established to provide protection against risk and catastrophes to people who were dieing very early, people who were aged and people who as a result of accident were disabled. This was practiced made possible by sharing and transferring risk with other individuals of the society. The idea of insuring oneself against risk is as old is mankind. Early times in England, societies were formed. Relief to the family of members of the societies would be given by making little sum of payments, if the grains of the farmers were damaged. The first life insurance company was established in England in 1705 and named the Amicable Society for Perpetual Assistance. Life insurance developed from these small beginnings into colossal industry, which gives people sense of security they require to maintain financial stability, moral and faith against inflation, deflation, wars, boom, panic and all sort of devastation. Life insurance gives individuals sound financial back up to move forward as it is based on scientific principles. Life Insurance companies were the only companies to pay their dues fully and survive the crisis of recession while the banks and other investment companies failed to do so. The purpose of selling life insurance is to make sure that it provides fresh air to people to start a life. In the larger view the life insurance policy becomes the reason for the beneficiary to begin a new life. Life insurance does active saving, utilization of funds and reserves for hazards and opportunities. It is a medium of savings, protection and growth and it has given people peace of mind and financial soundness. TYPES OF LIFE INSURANCE There are many different classification of life insurance each satisfying different need of individuals. Life insurance can be broadly divided into two main types: Term Assurance Whole Life Assurance Term Assurance: It is the least expensive Insurance and is available in various forms. This form of insurance is opted if the individual cannot afford other types of insurance or when temporary protection is needed. The premium from this type of insurance is free from element of investment. Term Assurance policy in case of death of policy holder during the specified years is bounded to provide lump sum amount of agreed money but if the individual outlives, then in such circumstances the contract is ceased and no money is to be provided to the policyholder. Term Life Insurance policy lengths for: One-year term policy- promises to pay the beneficiaries of the policyholder the agreed amount of money if the insurer dies within one-year tem policy. Five years promises to pay the beneficiaries of the policyholder the agreed amount of money if the insurer dies within five-year term policy. Ten years, fifteen and twenty year term policy is also known as long term policy. TYPES OF TERM ASSURANCE: Renewable term life policy –In this term life policy, the policyholder automatically qualifies to continue the policy when the specified time of the policy ends. Non-Renewable term life policy- this term life policy, the policy holder does not automatically qualifies to continue the policy when the specified time of the policy ends instead the individual has to re-qualify for the policy by undergoing physical examination in order to determine the health condition. Convertible term life policy-In this type of term policy the insured has the choice to covert this type of policy into permanent life insurance policy into variable insurance, whole or universal life insurance. Non-Convertible term life policy- simply means that policyholder cannot switch the policy to another type life insurance policy. WHOLE LIFE INSURANCE: This policy last the whole (entire) life of the insured. If the policyholder stops paying the premium he/she can get the benefit paid till date. Because of this reason it is an expensive life insurance policy. For example the funeral policy in which expenses are covered for the funeral of the person passed away. Full payment for the policy is taken at the time of purchases of policy. Whole life insurance policy can be divided into two types: Ordinary Life Insurance Limited Payment Life Insurance Ordinary life insurance: It is also know as straight life insurance. In this type of insurance policy the insurer is give lifetime security. For example if the insurer is alive at 100, then he is to be paid the benefit if the policy or the agreed amount of money. Under this policy of life insurance the policyholder is charged high premiums in the start of the policy and charged less premium during the last years of the policy. The life insurance company invests the premium of the policyholder to accumulate a cash surrender value. The policyholder can withdraw from the policy by taking the cash value or borrowing cash value at lower interest rates. The cash value is relatively small in the start of the year and increases with years. LIMITED PAYMENT LIFE INSURANCE: This life insurance policy is also known as â€Å"limited pay life insurance† in which individual pays for the specific time period and enjoys the policy for the rest of his/her life. The face amount of the policy is paid tax free to the beneficiaries the policyholder mentioned. This face amount can be paid on monthly basis or in lump sum amount. If the Policyholder mentioned to make payment to the beneficiary on monthly basis then the policyholder has four options to choose from: Life Income-In this policy the beneficiary of the policyholder is paid on the monthly basis as long as the beneficiary lives. Fixed Period Income-In this type of policy, the policyholder asks the insurance company to pay the beneficiary after his death the proceeds in equal amount over the period of ten years. The years determined are dependent on the wish of the policyholder. Fixed Amount Income-In this type of policy the policy holder asks the insurance company that after his death the nominated beneficiary should be paid lets suppose Rs.1000 a month till the proceeds are exhausted Interest Options-In this the policy holder asks the insurance company that after his death the benefit of the policy should be reinvested by the insurance company and the interest from the investment made should be provided to the nominated beneficiary each year. OTHER FORMS OF LIFE INSURANCE: Endowment Life Insurance- This policy is for a specific time period. The face value is paid to the nominated beneficiary if the policyholder dies during the specific period but if he is alive then the policyholder is paid the benefit of the policy. Variable Life Insurance-This policy is for the whole life. The policyholder is given option to decide the amount he wants to invest in life insurance and the amount he wants to invest in other investment opportunities like buying stocks. It has a guaranteed death benefit, which is based on forecasted interest rates. Theses rates are not fixed indeed vary from company to company. Universal Life Insurance-This policy charges less premium in the start but does not provide death benefit or cash value as this policy is flexible in terms of premium payments and timing. Second To Die Life Insurance- This policy is designed for couples.(married).The benefit of the policy is provided to the heirs of the policyholders only when the surviving spouse dies. Juvenile Life Insurance-The purpose of this policy is to provide safeguard to the children. The guardian or the parent of the child purchases policy in order to secure the minor from mishaps. Modified Life Insurance Policy-In this life insurance policy higher premium are charged at the later years of the specified time. It is suitable for those individuals who believe that their salary/income will increase in the future. METHODS FOR PROVIDING LIFE INSURANCE PROTECTION: There are two methods that are actively used to provide life insurance to individuals. Annual Renewable Term Level Premium method Annual Renewable Term: This type of life insurance policy has overcome the challenge of insurability simply meaning that the policyholder can renew the policy without under going medical examination or providing sound health evidence. Because of poor health or other mishaps the insurer might not be allowed to renew the policy. So annual renewable policy (ART) ignores the insurability element, they simply pay the renewal premium. The policy period varies from 10 to 30 years and for the till the age of 95 mostly. In such policy the premium to be paid is much higher then other life insurance policies. The more the age the higher the premium to be paid and thus the greater the return on the policy. The premium is calculated by determining the death rate of each age group. For Example: A group of 1000 males (non-alcoholic) at the age of 40 wants to get a life insurance for $1000.The death rate of males at the age of 40 is .332% out of 1000.This means that the insurance company would have to pay $.3220 for the death claim. The insurance company would have to collect $.3.20 from each policyholder in order to cover the death claims. The yearly renewable insurance premium increases, as the individual gets older. Premium sharply rises during the later years, because as the age grows the death rate also grows. LEVEL PREMIUM METHOD: In this type of life insurance policy the premium remains the same for the agreed number of years. The time frame varies from 10, 15, 20 to 30 years. This life insurance policy provides insurance to age 100.If the insurer survives till the age of 100 then the face value of the policy is paid to the policyholder. The premium charger in the early age is higher in order to cover for the morality expenses. Level Premium method is also know as ‘Legal Reserve† because the money invested by the company is according to the state law. The state requires the company to maintain a minimum amount of liquid so that it is able to pay for the agreed claims. The legal reserve that the insurance company maintains is equal to the present value of the future death claims minus present value of future premiums. The main objective of the legal reserve is to provide lifetime security. The policyholder has an option to withdraw from the policy by just taking the cash value which is less then the legal reserve because of deductions of expenses like sales. UNISLAMIC ELEMENTS IN CONVENTIONAL LIFE INSURANCE Conventional insurance contains the elements that are unacceptable in Islam which include Riba Maisir Gharar Riba –also termed as interest, is present in conventional life insurance. Loans granted by companies are charged on interest. An insured upon his death receives greater then he has paid. This is not permissible in Islam. Insurance funds stocks/bonds contain the element of interest Those who eat riba (usury) will not stand (on the Day of Resurrection) except like the standing of a person beaten by Shaitan (Satan) leading him to insanity. That is because they say, Trading is only like riba or usury, whereas Allah has permitted trading and forbidden riba. So whosoever receives an admonition from his Lord and stops eating riba shall not be punished for the past; his case is for Allah (to judge): but whoever returns to riba, are dwellers of the Fire they will abide therein. â€Å"Al-Quran, Al-Baqarah (2). 275 Maisar- It refers to gambling or game of chance. Gambling of all forms/types is prohibited in Islam. The gambler tries to win mass wealth without making an effort. When the policyholder dies after only paying a small amount of premium his/her nominated beneficiary receives the benefit in term of monetary, which the policyholder has no idea where the amount has come from. Al-Maisir is referred to in the Quran as follows: O you who believe intoxicants (all kind of alcoholic drinks) and gambling, and Al-Ansab (ways for seeking luck) are an abomination of Shaitan (Satan). So avoid strictly all that (abomination) in order that you may be successful. Al-Quran, AI-Maidah (5): 90 Uncertainty -It is an element which is termed as gharar, is prohibited in Islam. In business terms gharar means undertaking business deals which are riskier and individuals do not posses sufficient knowledge about them. A contract which contains uncertainty due to: Occurring time is not known. The amount payable is not known. Whether the payment will be accepted as agreed. HARAM/HALAL-Islam does not allow individuals to invest money in unIslamic activities. Insurance companies may invest in bonds or tobacco companies or any unethical activity which is not permissible in Islam then taking insurance from such companies is considered haram. ISLAMIC LIFE INSURANCE The transaction of an Islamic life insurance system aims to protect the life of widows, orphans and the dependents of the deceased against future risks and hazards. It follows the principal of Al-Mudaraba financing. Under this principal the insured and insurer mutually agree to co-operate. The insured dependants are protected of future hazards as well as donations are made for the uplift of poor individual who face accidents in Islamic society. This concept was present and practiced during the times of Holy Prophet (P.B.U.H). In Islamic life Insurance policy the nominee is just acting as a trustee and is not considered the absolute beneficiary. The purpose/responsibility of the individual nomination (nominee) by the assured is to distribute the benefit to the heirs of the deceased under the principal pf Mirath and Wasiyah. In Islamic life insurance policies there are two situation in which the benefits of the policy are transferred i) the insurer can claim from the insurer the benefi ts if he outlives the time mentioned in the policy a) the paid premiums b) the profits made upon the paid premiums and c) the dividends/bonus made according to the company policy. In the other situation if the insured is not alive or passed away during the policy, the benefits are transferred to the nominee (selected by insured) and it is mandatory for the nominee to distribute the benefits of the policy among the heirs of the policyholder. The benefits include a) paid premium b) profits made on the paid premiums c) bonus/dividends make the company policy and d) donations from the companys charitable funds according to the policy selected by the assured. The benefits of the Islamic life insurance policy are not just claimed by individuals who face natural death/accidents but the benefit are also provided to people insured and passing in unlawful death example suicide/murders. The reason for that is life and death can only be det