If this is more profitable to the insured, why is this not popular? Why the world does not adopt it? Is it because this is “Islamic”? The answer is No. The world is more capitalist than religious. The money minded insurers who totally dominate banks and government departments can never tolerate any decrease in their profits. Therefore, they foil every effort to replace the system which cuts their share of profit and diverts it to the public. Not only the premiums but also the billions of dollars they get as interest by lending the money will be stopped.

Since 1979, there are over 25 Islamic insurance companies so far to our knowledge, operating all over the world. Among them there are five in Malaysia, two each in Sudan, Bahrain, Brunei, Iran, and Saudi Arabia and one each in U.A.E., Switzerland, Bahamas, Luxembourg, Indonesia, Singapore, Qatar, Kuwait and Pakistan. OIC (Organisation of Islamic Countries), WAMY (World Assembly of Muslim Youth) and IDB (Islamic Development Bank) at present are taking the initiatives to establish international re-insurance corporations, study groups to spread the awareness of the insurance among the common Muslims. They are doing research for finding out more sophisticated ways of avoiding all the unlawful elements which are an integral part of the conventional insurance.

Sudan and Malaysia took the lead to establish the first ever Takaful insurance system. The gradual growth and development of the Shariah based insurance is satisfactory despite the fact that there are still some areas to be developed. It is sad to say that there are also many scholars who oppose the practice of insurance, especially the life insurance.
They have no alternative to bring forth; as a result, the majority of the Muslim Ummah is away from the mainstream of the insurance field and unable to bring any change in the system. There are, of course, drawbacks in the contemporary conventional insurance system. This does not mean that insurance practice is entirely unlawful and illegal. This trend of opposing the insurance without suggesting an alternative is damaging severely the Muslims living in the non-Muslim states like America, Europe, India, Sri Lanka, Russia, etc. It is the responsibility of the scholars to be innovative and guide the Muslims living in the Muslim as well as in the non-Muslim states.