The extent to which the Algerian legislator takes into account the Sharia principles upon which Takaful insurance is based

Abstract

Despite the importance of commercial insurance, in the economic and social life, most Muslim scholars have concluded that this act is wrongful and misleads people, so they recommended the takaful insurance as a substitute which complies with the the Islamic doctrine rules. Hence, the study aims to ascertain the Tontine, as a legal alternative to the commercial insurance, under the Algerian law, implemented by the Executive Decree N°21-81 signed on February 23, 2021, defining conditions and modalities of practicing the takaful insurance. The outcomes include that the Algerian legislator has successfully set a Tontine that takes into account most of legal principles, such as submitting its activity to legal organ monitoring, the total split between the account of participants and the partners’ account, distributing Insurance surplus and other legal principles upon which this present Insurance is based.