INSURANCE UNDER NIGERIAN STATUTES: THE ISLAMIC LAW ALTERNATIVE
ABSTRACT
Insurance scheme is put in place to fall back on in the event of risk or calamity occurrence. Nigerian Statutes require that every motor vehicle owner must possess at least third party insurance policy. However, the conventional insurance contradicts certain elements of Islamic law which make it unlawful and unacceptable. Thus, majority of Muslims (believers) and other adherents have refused to adopt the conventional insurance and subsequently, called for alternative shariah compliant products. Consequently, this research work discusses essentials elements, formation and operation of insurance scheme with specific emphasis on motor vehicle insurance scheme under Nigerian statutes and Islamic law alternative, differences and thereafter considers the relevant provisions in new Takaful Guideline, identifies challenges therein. In the final analysis, observes that there is lack of awareness on the part of public about insurance generally and Islamic alternative (takaaful) specifically and finally recommends inter alia that: NAIOCM should relax some of the stringent conditions/requirements to allow more takaaful companies to come up, intensifies effort to curb use of fake insurance papers and inject sanity into the industry and that co-operative insurance be adopted as means of promoting insurance scheme among association members.
CHAPTER ONE
INTRODUCTION
1.1 Background to Study
Virtually, all legal systems recognized and guaranteed certain rights for human beings. Further to these recognized rights, some selected rights have been regarded as fundamental rights. Among these fundamental rights is right to acquire and own property. The Nigerian Constitution like that of other civilized countries, followed suit and recognized these fundamental rights1. Notable among these rights is right to acquire and own property. In furtherance to the above, the right to own property was further guided and jealously protected to the extent that tampering with same (somebody property) without prior consent and permission of the owner is regarded as criminal act (i.e. offence) under the law3. In addition to the above, a Nigerian Citizen is allowed though subject to some limitation to have resort to self-help in an attempt to defend his property4. Comparatively, Islam and indeed Islamic law equally in comprehensive form provided for, protected and guaranteed the essential rights5 (among which is right to own property). Islamic law did not only recognize and protect the right (referred here specifically to right See Chapter IV of the Constitution of Federal Republic of Nigeria 1999 (as amended). 2 See section 43, ibid.