A Comparative Analysis on Takaful Acts between Malaysia and Indonesia

Abstract

Rules and regulations are the essential guidelines to ensure the implementations of any subject matter are in order. The aims of this paper intend to make a comparison of takaful rules and regulations in Malaysia and Indonesia. The researchers divided the work into five phases: Phase 1; Developing Framework, Phase 2; Industry roundtable discussion with the proposed draft framework/model, Phase 3; Side visit/Collect Data, Phase 4; Research Finding and Phase 5; Writing and Publishing. Six (6) takaful Companies (handling General takaful) selected as samples for this research comprise of three takaful companies from Malaysia and three takaful companies from Indonesia. Results of interviews were recorded and analyzed using ATLAS. ti software. The findings showed that the current general takaful rules and regulations are Islamic Financial Services Act 2013 (IFSA 2013) in Malaysia and Undang-Undang No 40 (UU40) in Indonesia. However, UU40 was referring to both takaful company and the conventional insurance company, and it only discusses the headlines of the acts and further explanation of it can read from the Peraturan Otaritas Jasa Keuangan (POJK). Contradicting, IFSA 2013 referred entirely to the takaful company covered all the takaful rules and regulations and a compilation of banking, takaful, and money market. In spite of making a comparison with regards to the general rules and regulations and more on administrative matters which referred to IFSA 2013 and UU40, the practitioners suggested to the researchers to compare the crucial operational issues because it will find more differences such as the Takaful Operational Framework (TOF) from Malaysia and the POJK in Indonesia. The results of this study could provide a significant contribution to Takaful operators in ASEAN countries especially for Malaysia and Indonesia. Keywords— Takaful rules and regulations; Act, IFSA 2013; Undang-Undang 40 (UU40); Malaysia; Indonesia