Governance of Sharia Supervisory Authorities in Takaful Insurance Companies in Light of Regulating Laws and Legislations: a comparative study, Ali Shita, Prof. Nassr Ahmad

Ali Nouri Abdullah Shita
PhD Student
Accounting Department, Higher Institute of Science and Technology
Alasabaa
Libya

Prof. Nassr Saleh Mohamad Ahmad
Accounting Department, Libyan Open University
Tripoli
Libya

Objective: The study aims to provide a comparative analysis of the laws regulating Sharia Supervisory Boards in Takaful insurance companies in different countries, by shedding light on how members are appointed and dismissed, determining rewards, the rights and duties of the Sharia Board, as well as the mechanisms for monitoring its performance by the competent authorities.

Design/Methodology/Approach: The study based on a comparative research approach, where a comparison was made between the legislative and regulatory frameworks in a group of leading Islamic countries in the Takaful insurance sector. Data was collected by using the content analysis (based on Comparative Index) of the laws and legislations that regulate Sharia supervisory boards in Takaful insurance companies.

Results: The results of the evaluation of Sharia supervision practices in different countries around the world show a striking variation in regulatory policies, despite some commonalities between most countries. In Malaysia, the system achieved 61.4% of the final evaluation. However, in Indonesia, the system suffers from some shortcomings in independence, recording 51.4% in the evaluation. In other side the Gulf countries, similar policies were evident in the Emirates (62.9%), Bahrain (61.4%), Kuwait (65.7%), and Qatar (70%), compared with the Middle Eastern countries, such as Jordan (60%), Egypt (67%), Iraq (60%), and Sudan (45.7%). Finally, in the North Africa, the features of Sharia supervision scored (50%) in Libya, Tunisia (61.4%), Algeria (30%) and Morocco (42.9%).

Originality/value: This study contributes to highlighting the gaps in current legislation, especially with regard to the role of the subscribers' body in Takaful insurance, and it contributes to enriching the discussion on improving transparency and ensuring the protection of the rights of subscribers in this sector.
Keywords: Laws Regulating Takaful Insurance, Sharia Supervisory Board, Comparative legislation, Reward Mechanisms, Supervision of Sharia boards, Rights and Duties of the Sharia board, Takaful insurance sector, Sharia Governance.

Paper type: Comparative study