A condensed version of the classic Fundamentals of Risk and Insurance, this accessible text contains the latest forms, statutes and court decisions and examines specific contracts in detail to emphasize insurance principles. Addresses such timely issues as the high cost of medical care and automobile insurance. detail to emphasize insurance principles. The helpful study aids and the critical essentials of risk management and insurance remain intact. A special section on buying insurance prepares the reader for future purchases.
Some Muslims believe insurance is unnecessary, as society should help its victims. "Insurance," however, need not be a commercial venture. In its purest sense, it is assistance with the adverse effects of inevitable afflictions, an arrangement beneficial to all. Schemes to ensure the livelihoods of traders and communities have been in existence for millennia. Commercial insurance on the other hand, was invented ostensibly for the same ends but with the chief beneficiaries being the shareholders and directors. Among the countless revelations Islam passed on, two prohibitions, namely riba (usury) and gharar (risk), have been used by legislators as grounds for the prohibition of insurance. Islam is not against making money, and there is no inherent conflict between the material and the spiritual. Islamic law allows igtehad (initiative) to the benefit of people as long as there is no harm to other people. Muslims can no longer ignore the fact that they live, trade and communicate with open global systems, and they can no longer ignore the need for banking and insurance. There is no prohibition in Islamic law against banking, nor insurance; similarly, Muslims can create insurance schemes that use their faith as the immutable basis for a working model. Aly Khorshid demonstrates how initial clerical apprehensions were overcome to create pioneering Muslim-friendly banking systems, and applies the lessons learnt to a workable insurance framework by which Muslims can compete with non-Muslims in business and have cover in daily life. The book uses relevant Quranic and Sunnah extracts, and the arguments of pro- and anti-insurance jurists to arrive at its conclusion that Muslims can enjoy the peace of mind and equity of an Islamic insurance scheme.
The idea for this book came from my decision to update an article by Roy C. McCullough entitled "Insurance Rates in the Courts" published in the June and July 1961 issues of the Insurance Law Journal. When this project began, the intention was to produce a similar journal article surveying insurance rate litigaÂ tion between 1960 and the present using basically the same organization followed in the seminal article. However, the volume of reported cases during the last twenty years was much larger than anticipated and the issues being litigated had expanded dramatically. The project grew as my study progressed, and the resulting book surveys more than three hundred disputes involving insurance ratemaking and insurance rate regulation. The fruition of this project would not have been possible without the consistent encouragement and criticism of Roy McCullough, and it is with gratitude that I acknowledge his continuous and valuable assistance to me in this effort. Once an initial draft was prepared, a number of my associates cooperated by reading and commenting on the manuscript. I would like to give special thanks to Michael J. Miller and James F. Perry who unselfishly shared their time and knowledge to improve this work. Needless to say, none of those who read the manuscript is responsible for any errors in concept or detail that may remain.