SOCIO-ECONOMIC JUSTICE AND PROTECTION OF WEALTH VIA MALAYSIAN TAKAFUL OPERATIONS: AN ANALYSIS FROM MATERIAL, IMMATERIAL EFFECTS AND THEORETICAL FRAMEWORK DEVELOPMENT

Takaful companies in Malaysia operate their business and services based on Shariah principles. As one of the vital sectors in Islamic Finance, takaful business requires for continuous compliance with relevant regulations in ensuring income legitimacy and organizational stability. Five (5) Islamic Finance principles which stand as the bases underlying takaful operations are deliberated in this research in highlighting its differences from conventional financial counterparts. This study is library based and the analysis primarily focuses on both material and non-material effects as a result of applying these principles to the Takaful operators itself. The list of key literatures are reviewed and their relevance to Islamic finance principles, material and immaterial effects which finally leads to the theoretical framework formation.