Comparative Analysis of Islamic and Prevailing Insurance Practices
Mubbsher Munawar Khan, Hassan Mobeen Alam, Naveed Ahmad, Muhammad Sabeeh Iqbal, Salmat Ali

Abstract
Purpose – Islam is believed to provide guidance in every sphere of life. This guidance is not limited to the social aspects but also covers economic dimension of human life. Islamic economic system supports interest free financial system. This paper addresses insurance, a part and parcel of modern financial and economic system. We have compared prevailing insurance system with Islamic alternative, Takaful. We have attempted to highlight its main features and discussed its suitability. Methodology - Sources of Sharia (Islamic way of life) are sought to trace the roots of Takaful. A brief comparison between Islamic insurance and prevalent system is given to find out whether Islamic insurance can take over prevailing insurance system. Findings – After comparing Takaful with conventional insurance, it is indicated that Takaful is more suitable than insurance especially to the vast Muslim community of the world. Value – This article gives a comparative analysis of Islamic and conventional insurance system. In this way it is an addition to the scarce literature on the subject. It has a managerial implication in the shape of guidance to the potential buyer of the insurance.

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