Global Warming Report Essay

Over the past few decades scientist have been observing a warming trend in the over all temperature of the earth. Although the earth has been known to go through warm and cold periods, it seems that we humans are causing the earth to heat up this time. The greenhouse effect is causing the earth to go through this warming trend that we call global warming. The greenhouse effect is caused when the infrared radiation from the sun is absorbed in atmospheric gasses such as water vapor, carbon dioxide, ozone, and methane. All of these gasses escape slowly from the atmosphere, therefore the heat stays here longer in a short of warm airy blanket. Without the occurrence of the greenhouse effect scientist say that the earths average temperature would be around 30 degrees C. or 50 degrees F. There are many greenhouse gasses that can trap the infrared rays of the sun. Carbon dioxide can be released into the atmosphere in several ways, the bulk of it is produced by car exhaust, deforestation, and the burning of fossil fuels. It is a colorless, odorless, non flammable gas, and it is also the most prominent greenhouse gas in earths atmosphere. CO2 is recycled through the earths atmosphere using the process photosynthesis, which makes most life on earth possible. Another greenhouse gas is methane and it is one of the most common gasses in the universe. methane is colorless odorless gas that is lighter than air and is produced by organic decay. Deposits of methane can usually be found in areas where lots of natural decay takes place, such as swamps, and land fills. Each year we add 350-500 million tons of methane to the atmosphere through mining, raising livestock, rice cultivation, and landfills. In fact a cow can release up to a half pound of methane into the air everyday. Nitrous oxide is another colorless and greenhouse gas, however it does smell sweet. It is mostly used medically because it deadens pain, because of this it is called laughing gas. It is released naturally from oceans and by bacteria is soil. It is important to reduce our emissions because nitrous oxide we release today will still be trapped in the atmosphere 100 years from now. The set of greenhouse gasses are fluorocarbons, that is a general term for any group of synthetic organic compounds that have fluorine and carbon. These can be found in aerosol cans, refrigerators, and air conditioners. When fluorocarbons are released into the atmosphere they breakdown molecules of the earths ozone layer. The effects of global warming are also good for human beings, because it could increase food production. The most important factor in crop production is climate, and global warming would facilitate a better climate for the growth of more crops. It would also create much more space for businesses were there was once ice and harsh climate. Also without global warming the earth temperature would be about 30 degrees F. n average. With global warming there would be far fewer deaths from cold exposer. If global warming caused enough arctic melt then shippers would have many new shortcut routes to take from place to place. After glacier melt we would have access to many new mining areas. However global warming will also have some large negative effects. Such as health concerns, scientist predict that there will be ma ny more deaths from diseases that are irritated by heat, including heart attacks and heatstroke. Another downside to global warming is the amount of flooding that will occur with coastal cities. Scientist have predicted that about a sixth of the country will be under water after global warming has taken full effect. The Maldive Islands are a nation of 1190 islands that are home to over 200,000 people. These islands are only 1. 5 meters above sea level and if global warming occurs then all of those people will have to be relocated. There are many things that we as human beings can do to help prevent global warming from happening. We can start to take advantage of all the different types of renewable energy instead of burning fossil fuels that pollute the atmosphere in multiple ways. There are many types of clean, efficient, renewable energy sources. There are many energy sources that the earth has provided for us that we need to take advantage of. We need to build more wind turbines, hydro electric plants, and solar power plants. Another way of producing clean energy include using fission through nuclear power to create a clean renewable energy source. Government can also be doing there part by funding research about global warming and raising awareness about how individuals can be doing there part to reduce pollution. In conclusion, Global warming is a very serious thing, it can affect the orld in many different ways. We just need to decide which effects help or harm the world the most and then make an educated choice as to which ones the earth can handle while taking the least amount of stress, and having the best long term effect. ————————————————â €”———————————————————————————————————— Patrick Michaels, â€Å"The Satanic Gasses† Henry Willis, â€Å"Earths Future Climate† Fred Singer, â€Å"Hot Talk and Cold Science† Ronald Bailey, â€Å"Global Warming and Other Eco Myths†

Qantas Airways Limited Group Essay

Introduction: Qantas Airways Limited is an Australian iconic airline group engaged in the operation of international and domestic air transportation services and the provision of freight services (Market Line, 2014). The airline also associates its services with the Jetstar brand, with QantasLink, Jetstar Asia and Jetstar Pacific grouped under the same business (Passport 2013). With a 17.7% market share of international passengers in Australia (Business Monitor, 2011), the company aims to upsurge its global market position through a demanding and reconstructive approach. The company has already accomplished a notable degree of achievement locally and internationally with its significant competitive positioning and strong alliance with Emirates and previously British Airways. Though with increasing global forces bestowing as challenges for the business, Qantas has to adapt to the macro-environmental factors appropriately in turn with their internal marketing mix. Clarke (2006) stresses that in a wo rldwide economical industry, competition is fierce and costs need to be through international eyes, so an arduous analysis of the strategic pillars is needed for the sustainability and improvement of Qantas in the international market. Internal Analysis 1.1 Strategic Alliances For the improvement of global marketing performance for a company such as Qantas, a global outlook on the affiliation between market condition, marketing policies and programs and consumer response needs to be developed systematically (Davidson, 1983). The application of internal factors relating to the strategic approach Qantas has applied has developed in an enhancement of its global branding in the international aviation market. Qantas tactically formed a strategic 10-year alliance with Emirates on 31 March 2013 (Passport 2013), to further strengthen its global service across various regions around the world as well as to improve its system coverage. With its international segment continuing to be loss making (Passport 2013), retaining the international division of market share with Emirates includes a permanent shift in their network of destinations that includes Europe,  Middle East and Africa; which is evidently a geographic advantage for the airline. The relationship deems m ore significant than a fixed agreement, including integrated network collaboration with coordinated pricing, sales as well as a benefit-sharing model (Market line 2013). The partnership also coincides with their loyalty program, standardising the benefits for customers across both airlines in turn expanding their business partners on a global level. 1.2 Competitors: The generated link between market share and competitors is relatively important, as Hazledine (2011) stresses the more competitors there are, the smaller the market share. By forging an alliance with an attractive competitor like Emirates, the company has gained a stronger network in Europe, Middle East and Africa, while gaining a competitive advantage in the international aviation market. However, since the formation of this new strategic alliance, the termination with the previous partnership with British Airways has led to a change in routes and the comprise of its position with Oneworld- an alliance of the world’s leading airlines working as one (Oneworld, 2014) There has been an increase of rivalry by a number of competing airlines targeting Qantas’ lucrative international and domestic routes. Hazledine (2011), discusses that the Australian market is ‘predominately duopolistic’, with about three quarters of the routes are shared between Virgin and the remaining are Qantas’ monopolies. This implication leads to its dominance in the Australasian market being targeted by other leading aviation companies. The bulk of Qantas’ sales are from Australasia (Passport, 2013), though has been increasing interests from competing airlines seeking to capture their share hold of the region. However, with the significant investment of the expansion of Jetstar in the Asian territory, the notion of retaining a stronger consumer base will significantly intensify due to the construction of new routes with a code-sharing agreement signed with China Eastern (Passport, 2013). External analysis: 2.1 Economic conditions In order to sustain their achievement thus far, the ability to capitalise  costs and expand travel options for consumers on a global level leaves Qantas to transform its programme entirely, ‘becoming one of the world’s best premium airlines, setting global standards for long haul travel†¦Ã¢â‚¬  (Mules, 2013). Though with the fluctuating inconsistencies in the global sphere, this economically impacts on the business itself. Before the economic downturn, the business illustrated the competitive pressures from Virgin Australia and various low-cost carriers flying to Australia (IBISWorld, 2014). Its competitors highly influenced the profitability of the company with Virgin Blue successfully capturing the market share from Qantas, highlighting 30% – 40% lower costs than those of Qantas (Oxenbridge et al, 2010). The combination of the Global Financial Crisis (GFC) and the inherent volatility of the aviation industry (Financial Management, 2013), meant that in te rms of economic environment, many were seeking to lower and affordable services. Jetstar, a positioned association of the Qantas brand, centres on minimizing costs through operational efficiencies (Oxenbridge et al, 2010). In recognition to this significant investment of Qantas, there has been an increased focus on Jetstar’s expansion into the Australasian region, by building stronger relationships in the effort to replicate the dominant market share of the domestic market to those in the Australasian region. Revenue evidently increased where it eventually reached the stage providing more than 100% of the Qantas group’s profits in 2009 (Danaher et al, 2011). Jetstar’s performance provides an opportunity to focus on Australian traffic into the Asian continent, as demand for low cost carriers remains high in Asia Pacific (Passport, 2013). Furthermore, the rising oil prices seem to reinstate huge challenges to the economic conditions of a company. They directly impact on the profitability of a business and has always been a major component contributing to cyclical nature of economic activity and the demand for air travel (O’Connell and Williams, 2011). With an 18% bill increase in 2012 (Market line, 2013), it pressurizes on the costs and margin of profitability of the company, which has led to an increase to internal and external costs. 2.2 Sociological factors: Moreover, it is important to recognize the severity of income levels across the heterogeneous market, which may influence sociological issues. The first  issue relates to the cost-cutting strategies which have been implemented by Qantas, including segmenting businesses, instituting pay freezes and the outsourcing of functions (Oxenbridge et al, 2010). According to Oxenbridge (2010), Qantas slashed thousands of jobs with redundancies and attrition in order to save costs and switch to lower cost providers. Due to this predicament this has led to shifting operations and agreements offshore, basing their tasks in Dubai ultimately resulting to the significant number of job cuts associated with the employment of the 5-year transformation programme (Mules, 2013). As profit margins are expected to increase with pressure, this has been an increasing implication for the company who are still establishing aggressive policies, which is ultimately affecting the suppliers and workers of the business. Furthermore, the second relates to the two-brand strategy Qantas has operated to cater for business travellers and leisure carriers. The study of global trends on an international level must be initiated in order to provide the correct service to diverse ranges of markets. With the emergence of their lower cost carrier Jetstar, the company has applied different ranges of classes to accommodate the social needs of their consumers. By operating the services of premium classes to business passengers and lower fare divisions to those of the leisure travellers, restructures the position to appeal to all consumers. 2.3 Environmental factors: Qantas’ key priority is the reduction of carbon emissions resulting in fuel burn (Holmes, 2013). Their environmental sustainability ensures the future vitality and maintenance for the company and the implementation of programs aids them to become a global environmental sustainability leader in the aviation industry (Qantas, 2014). The effect of their corporate social responsibility can be suggested through the application of minimising carbon emissions and carbon footprint through the introduction of the lower cost fleet, B787 Dreamliner. With its improved fuel efficiency, it is expected to use 20% less fuel (Passport, 2013). Human activities further reiterate climate and environmental issues, which ultimately influence the internal mix of the Qantas group. 2.4 Technological Factors: The importance of communication technology will always be of significance in regards to the tourism and airline industry (Coles and Hall, 2008).The enhancement of customer experience through the disbursement of modernised technology embedded in all carriers of Qantas has led to the rising operations of customers on a global scale. In an article relating to the key issues of the company, Holmes (2013) depicts the rewarding response in relation to the implementation of â€Å"online and mobile check-in, in-flight entertainment and electronic bag tagging† in regards to the intense global competition. The utilisation of an interactive application of RED, as well as the advanced browsing tool for frequent flyer users has been adapted to their global brand strategy in order for the improvement of quality and rewards for customers (Passport, 2013). Additionally, it has been noted that this generation of innovations is particularly reliant on information technology (IT) and communications technology (Pansiri and Courvisanos, 2010). In saying this, it is crucial for companies to navigate their views onto the online society to accommodate to a wider market. The functionality of particular social media strategies has aided Qantas to expose the brand in an online approach. With the extensive improvement of new forms and technologies, the continuing implementation of these devices is crucial for company as well as the consumer experience. 2.5 Political and legal factors: Reinforcing the fact that Qantas is a multinational company, the operation of its services must run in a highly regulated environment. Through global alliances and government regulation, the manifestation of air service agreements primarily dictates the spatial extent of the airline network (Coles and Hall, 2008). Amongst the complexity of the regulation of frameworks the aviation industry appear to regulate in, the requirement of considerable negotiations between global governments must be reiterated in some occasions when regulating their rights to specific routes and air space. Qantas continues to benefit from government protection in the Australia- Los Angeles route, where Qantas and United Airlines operate as a duopoly (Oxenbridge et al, 2010). Along with other alliances Qantas has tactically initiated, the air space is shared between Emirates, which inevitably upsurged their competition global position. Furthermore, the  implication of job security and the issues relating to Qantas’ legal dispute has created uncertainty for workers. With Qantas outsourcing their operations at a much lower rate of pay, has seized the attention of unions objectifying this notion. The major issued raised was the compatibility of the Fair Work Act in relation to the Qantas dispute. Forsyth and Stewart (2013) exemplify the issue of the ability of unions protecting their employee’s rights and jobs against the global competition of labour and outsourcing of jobs. This meant that in turn new enterprise agreements would be set out; pertaining Qantas to sought and revise their business strategy in the attempt to bargain with the unions. Nonetheless, this issue of the outsourcing of jobs is an increasing predicament resulting in long-term implications for workplace regulation in Australia (Forsyth and Stewart, 2013). Conclusion In this strenuous analysis, the difficulty of bestowing challenges faced upon Qantas has led to a tactical approach of forming alliances with the largest competitor in the aviation market. However, the application of internal and external factors must be applied in order to retain their market position. With its dominance of market share in the domestic market and increasing nature in the international segment, Qantas has the growth and potential to endure global forces imposing strategic approaches and marketing strategies. References: CLARKE, Andrew. The future for Qantas : still calling Australia home? [online]. ALTERNATIVE LAW JOURNAL; 31 (2) June 2006: 97-98. Coles, T and Hall, M.C., (2008) International Business and Tourism: Global Issues, Contemporary Interactions., Routledge Davidson, W. H. (1983). Market Similarity and Market Selection: Implications for International Marketing Strategy. Journal Of Business Research, 11(4), 439-456. Forsyth, Anthony and Stewart, Andrew. Of ‘kamikazes’ and ‘mad men’: The fallout from the Qantas industrial dispute [online]. Melbourne University Law Review, Vol. 36, No. 3, 2013: 785-830. Hazledine, T., (2011) Price discrimination in Australasian air travel markets. New Zealand Economic Papers., Vol. 45, Issue. 3 Holmes, L. (2013). High-flyer. Financial Management (14719185), 42(3), 32-34. IBISWorld (2014) Major companies. Accessed 3 April 2014 < http://clients1.ibisworld.com.au/reports/au/industry/majorcompanies.aspx?entid=471#MP32> Mules, R. (2013). The Long Haul:The QANTAS – Emirates Alliance. Busidate, 21(3), 2-4. Oneworld (2014) < http://www.oneworld.com/news-information/oneworld-fact-sheets/introduction-to-oneworld> Accessed on 9 April 2014 Oxenbridge, S., Wallace, J., White, L., Tiernan, S., & Lansbury, R. (2010). A comparative analysis of restructuring employment relationships in Qantas and Aer Lingus: different routes, similar destinations. International Journal Of Human Resource Management, 21(2), Pansiri, J., and Courvisanos, J., (2010) Attitude to Risk in technology-based strategic Alliances for Tourism. International Journal of Hospitality and Tourism Administration, Vol.11, Issue. 3 Passport QANTAS AIRWAYRS LTD IN TRAVEL AND TOURSIM (WORLD) (August 2013) Peter J. Danaher, John H. Roberts, Ken Roberts, Alan Simpson, (2011) Practice Prize Paper—Applying a Dynamic Model of Consumer Choice to Guide Brand Development at Jetstar Airways. Marketing Science 30(4):586-594 Qantas Airways Limited SWOT Analysis. (2014). Qantas Airways SWOT Analysis, 1-8. Qantas Group (2014) http://www.qantas.com.au/infodetail/about/environment/our-commitment-to-environmental-sustainability.pdf Accessed on 5 April 2014

Death of a Salesman: Symbolism

Langston Hughes's poem â€Å"Dream Deferred† is basically about what happens to dreams when they are put on hold. Hughes probably intended for the poem to focus on the dreams of African-Americans because he originally entitled the poem â€Å"Harlem,† which is the capital of African American life in the United States; however, it is just as easy to read the poem as being about dreams in general and what happens when people postpone making them come true.Overall, Hughes uses a carefully arranged series of images that suggest that people should not delay their dreams because the more they postpone them, the more the dreams will change and the less likely they will come true. In the opening of the poem Hughes uses a visual image that compares a dream deferred to a raisin. Hughes asks the question, â€Å"Does it [the dream] dry up, Like a raisin in the sun? † (2-3). Here you can see the raisin, which used to be a moist, healthy-looking grape, has shriveled up to becom e a raisin.Like the raisin, the dream has been on hold for a long time and eventually it has transformed into something very different than it once was. Because they look so different, few people would believe that raisins were once grapes unless they had been told. Similarly, a dream that continues to be postponed will go through a transformation as well-it won't be the same as the original. On the surface, readers may not view the outcome as negative because raisins are valuable on their own. However, Hughes does not stress the taste of the raisin; he emphasizes the fact that a raisin â€Å"dries up† or loses its moisture.The comparison of the dream to the withered raisin shows how a dream that is postponed changes dramatically and will not turn out as the person originally intended. The next image in the poem â€Å"fester like† a sore and then run† (3-4) gives you a sense of infection and pain. Comparing the dream to a sore of a body, Hughes suggests that unfu lfilled dreams become part of us, like a longstanding injury that has gathered pus. The word â€Å"fester† meaning something decay and â€Å"run† literally refers to pus in my opinion.From this perspective, it explains the pain that someone has when their dream always defers. A postponed dream is like a painful injury that begins to be infected. The next image â€Å"Does it stink like rotten meat†(5) intensified the sense of disgust. A dream deferred may also stink. If dreams are stashed away, will they haunt us like rotten meat haunts us when it sits too long in the refrigerator? If rotting meat didn't smell so bad, how much longer do you think it would sit in your fridge? The smell is often what reminds us to do something about it, to throw it away.What kinds of things crust or sugar over(6)? Honey; cheese or candy. Usually things that left out in the open and that aren't put away properly. Can dreams be put away properly? Can dreams be preserved if they aren' t pursued? Hughes compares dreams to sweet-tasting things, and comparing the bitterness of lost dreams. â€Å"Maybe it just sags like a heavy load† (8-9). Sagging things are things that are old, for example our skin, furniture or even curtains. I think Hughes is pointing out how important dreams are because they are heavy and if we ignore them, they grow to sag. Or does it explode† (10)? I think when Hughes uses the word â€Å"explode† he leaves it up to question. Explode could mean either from built up pressure or something more positive like fireworks or celebration. Whichever comparison, I think either are strong outcomes become your dream has some sort of result. Because of the time period Hughes wrote this poem, I think he wants the readers to question and think about their dreams, and what you are going to do with them; especially for African Americans.

The purpose and usefulness of standard audit report Essay

The purpose and usefulness of standard audit report - Essay Example Normally, audit reports presents the external review of the financial information of a company, conducted by an accounting firm and shareholders use it in assessing the financial health of a company. The Financial Reporting Council (FRC) in UK recommended for the enhancement of the responsibilities in financial reporting for the audit committees through publicizing of expanded reports. The auditor reporting entails coordinated structure that leverages the resources by IAASB (Boeckman et al. 2013, p. 76). A standard report summarizes an audit by the public accounting firm about the liquidity strength of a company. Auditing process entails comparison of the findings to internal audits to identify any discrepancies or errors involved therewith. When the audit is clean, standard audit report results. The standard audit report is the most used audit report, and it ensures that companies do not defraud the investors. Failure of the audit reports to conform to the acceptable standards in ac counting creates apprehension amongst the shareholders of the company (Boeckman et al. 2013, p. 77). The corporate finance statements and other investors express the concerns on the usefulness of standard audit reports (SAR). ... Three types of audit reports issued by auditors include the qualified, unqualified and adverse. Qualified opinions indicate the violation of accounting standards; adverse report shows shortcomings of the company; while unqualified opinion shows not-material misstatements. Audit reports are beneficial to a company. Standard audit report indicates issuance of non-qualified opinion based on the financial information of a company. This allows for extension of business by seeking outside investment to enhance future operations (Carcello 2012, p. 22). Furthermore, standard audit reports entail warnings. Adverse or qualified audit opinions subject the company to further audits resulting in negative goodwill to the outside investors. Companies also experience regulatory fines from the government agencies due to misleading the public on the financial health of the company. Standard audit reports also contain the expert insight. The accounting firms issue information to companies and auditors on acceptable auditing standards (Carcello 2012, p. 24). Standard Audit Report (SAR) SAR changed insignificantly over the last 60 years. Audit reports had not changed prior to 1988 Statements on Auditing Standards (SAS). There were significant changes made on the audit report by the financial statements. Professions tried making changes in 1965, and SAS incorporated introductory, opinion and scope changes in the third paragraph. The changes enhanced the usefulness of the audit report by giving a comprehensive definition of audit, as well as maintaining effective communication of management responsibilities, and the auditor in order to reduce SASs expectation gap. The main objective of SAR is to enhance credibility of the financial statements by the

Military vs Business Strategy Assignment Example | Topics and Well Written Essays - 250 words

Military vs Business Strategy - Assignment Example The enemy will not sacrifice dignity or pride easily, even if at times irrational. If an outlet is left, then acceptance of the dire situation can be made and the enemy will choose to surrender. (Cantrell, 16) If the enemy chooses not to surrender, the overwhelming advantage that one side possesses by means of military advantage would soon close off the one remaining outlet. If the foe is â€Å"desperate†, the goal is to encourage surrender without engaging in further unnecessary bloodshed. Giles further elaborated on what Tzu meant by this excerpt when he stated that the object is to make the enemy realize that there is at least one road to safety. This prevents â€Å"his fighting with the courage of despair†. He next adds: â€Å"After that, you may crush him.† (Giles 72). We can see a similarity is regards business strategy. Leaders of companies have often fought hard to get to the market position that they currently hold. They naturally feel that their company, product or service is the best, and usually have an intense dislike of competitors for obvious reasons. If a company feels overly threatened without letup, they may engage in irrational behaviors by expending vast amounts of scare resources to somehow beat the odds to prevail over the competitor in one particular â€Å"battle†. However, if the company with the upper hand does not press unnecessarily hard due to the circumstances, the disadvantaged competitor may come to reason that they need to back off of the current plan and regroup with a new plan. This saves resources for all sides, since the outcome of the particular strategic business battle is inevitable at that point, barring some very remote and unforeseen occurrence. Companies should keep in mind that a battle is different than a war. Companies will be at war for the length of their business operations in most cases, and to pursue a win of

Banking Concept Of Education Essay Example | Topics and Well Written Essays - 1250 words

Banking Concept Of Education - Essay Example Saudi Arabia, many of the students and educators have not realized that system of education is not just ineffective, but to a larger extent harmful. Going to our classes, we all had one goal in mind getting as much information for the test and getting out. Now that I am studying in America I realized how it is. The whole situation seems like feeding us information on a silver spoon. We were expected to stay quiet for the whole 60 minutes. Not knowing that it was wrong, we did what we were told to do. In the essay, The Banking Concept of Education, Paulo Freire argues that modern education is widely recognized as a chance for teachers to feed students with information as the students submissively accept it. In my years as a submissive recipient of information both in the Saudi Arabia and USA, I have come across numerous educators who fit Freire’s cynical description (Freire Paulo, 13). However, not teachers are the same, in that I have also realized a professor whose style of teaching is different from those Freire scorns, and she created a beautiful environment and splendid environment during the learning process. Her meth ods proved that it is very possible to develop a learning environment where students do not suffer from â€Å"narration sickness†.... The class that changed my opinion of education was the chemistry class. The professor, who was as highly educated as the rest of the faculty educators, initially stacked to the idea that she could learn as much from us the students as we from her. Freire demonstrates a number of qualities of the Banking Concept of Education, and argues these qualities are available in each and every classroom, and are reflected by â€Å"oppressive society in general† (Freire Paulo, 75). One of the first qualities demonstrated by Freire is that: the educator educates and the learner is taught. In our chemistry class, the professor had very little to do with the learning process. Every student submitted a new chemistry models every week, and our peers in the class provided with a feedback on our work. The professor was just there to show guidelines and to expound on complex chemistry concepts that we could not understand as a class, and to ask leading questions to prompt discussion. By reading o ur work and having the students explain to her, the professor also learned many things (Freire Paulo, 43). This logic is firmly related to Freire’s second listed quality which states that: the educator knows everything and the learner knows nothing. However, since most of the feedback came from other students, it was usually the opinion of students that was valued highly in the class. According to Freire, knowledge arises only through invention and reinvention, through impatient, restless, continuing, inquiries pursued by human being in the world, with the world and with each other. That is, true comprehension can only be fashioned though questioning, conversation, and

Choose two case studies and answer the question, is investigative Essay

Choose two case studies and answer the question, is investigative journalism essential to democracy Why - Essay Example In particular, investigative journalism has led to the fall of various unethical leaderships and ousting of corrupt governments in various parts of the world. Chief among the key events that investigative journalism has unearthed include the Watergate scandal and Joseph McCarthy’s propaganda plot. In addition, corrupt governments in Latin America have been exposed through the efforts of investigative journalists. This led to ousting of President Fernando Collor de Mello of Brazil in 1992, President Abdala Bucaram of Ecuador in 1997, President Alberto Fujimori of Peru in 2000, and President Carlos Andres Perez of Venezuela in 1993. These are a few cases where investigative journalism has facilitated the widening of the democratic space while ensuring that the public interest is taken care of. In this essay, an analysis of the case of Joseph McCarthy’s propaganda and that of President Alberto Fujimori of Peru will be put into perspective. Investigative journalism has over the years has promoted the attainment of a democratic society. On one end, it has helped the society embrace governments and institutions. On the other hand, the journalists have investigated incidences where there are excesses of the democratic privilege. In such scenarios, democracy has been used abused and individuals used it for their selfish interests. The media has the responsibility of exposing any matter for the sake of the even though the issue implicates individuals in authority. Through such interventions, investigative journalists ensure that people get the opportunity to express their views based on valid information that has been obtained from credible sources. Media also provides a platform in which performance is monitored for government and institutions. In many cases, scandals revealed through investigative reports trigger judicial investigations while at the same time providing evidence of wrongdoing. In

A Concept of Citizenship Essay Example | Topics and Well Written Essays - 500 words

A Concept of Citizenship - Essay Example What is citizenship? A citizen is an integral participant of the social life. A political community consists of citizens, whose participation is directed on the state’s welfare. Citizens gain benefits from their nation and thus they have to follow laws and regulations of their country. There are many aspects in the concept of citizenship. On the one hand, citizenship is a benefit, which enables citizens to vote or to receive insurance etc. On the other hand, citizenship is a hard work, which introduces obligatory involuntarily actions, obtruded by the government on its citizens.  Ã‚  For example, citizens have to pay taxes, work in favor of the country, to get secondary education and many other obligations are invented by the state and must be followed by the citizens. Citizenship is a great responsibility. It is a hard work and every citizen should remember of his daily obligations, dictated to him by the state. There is no welfare of the country without daily obligations c ompleted by the citizens. Thus, it is evident that citizenship is an integral part of the country. It is a trigger of the state’s functioning. We can summarize that there is no way out from this scope of duties. Nevertheless, it should be noted that not all people living in the state are citizens.

Ethiopia and Eritrea Research Paper Example | Topics and Well Written Essays - 4250 words

Ethiopia and Eritrea - Research Paper Example After about four decades of enjoyment of its sovereign right, Ethiopia is once more on the verge of permanently becoming a landlocked country. The present governing body of Ethiopia has approved and signed the Algiers Agreement that might make their nation landlocked (Healy & Plaut, 2007). If the opposition, triumphs in the next election or any election afterward, it might officially condemn the Algiers Agreement and insist on a new arrangement that identifies the right of accessing the sea. It is deemed accessing the sea is one of the burning topics that contributed to the achievement of the opposition and the decreasing support of the government in the last election. In this thesis, this paper will argue that Ethiopia has a legal right of accessing the sea as accepted by the regulations of the UN General Assembly of 1950, which was executed accordingly by merging Eritrea to Ethiopia. This paper recognizes the right of self-government along with the independence of the Eritrean citizens. Even though, it recognizes the independence of Eritrea, it also recognizes the sovereign right of accessing the sea by Ethiopia. The legal system that governs the territorial disagreements between Eritrea and Ethiopia is the treaty between UN and Ethiopia. The treaty was also referred to as the agreement between Ethiopia and the Victorious Four Powers of World War II in line with Eritrea, which was merged to Ethiopia, in 1952. The citizens of Eritrea fought for their fate and have become sovereign. Their desires have been accomplished by the blood that they paid during the fight for their independence (Healy & Plaut, 2007). The treaty of the Four Powers and Ethiopia is about the deliberation of the security of East Africa and the rightful need of Ethiopia to access the sea. In reality, the main purpose and objective of the treaty is the right of Ethiopia to access the sea. However, the people who appear to benefit mainly from the treaty are the Eritreans. The basis of any agreement that is meant to resolve the territorial disagreements between Eritrea and Ethiopia should adapt the recommendation of the United Nations General Assembly of 1950, as well as the international law, which gives Ethiopia the right to access the sea. Background The Horn of Africa, which comprises of Ethiopia, Eritrea, Djibouti and Somalia, is approximately three-quarters of a million square miles in the northeast of Africa (Interna tional Group Crisis, 2003). The region borders hundreds of kilometers of the Arabian Sea. It also lies along the southern border of the Gulf of Aden. Ethiopia stands at the center of the Horn of Africa. The country is bordered by Eritrea 912 km, Djibouti 349 km, Somalia 1600 km and Kenya 861 km, as well as Sudan 1606 km. The country shares diverse cultural groups with its neighbors (International Group Crisis, 2003). There is a wide range of ethnic groups living in Ethiopia, Kenya and Sudan. The

The Percentage by Mass of Calcium Carbonate in Eggshells Essay Example for Free

The Percentage by Mass of Calcium Carbonate in Eggshells Essay The purpose of this experiment is to determine the percentage by mass of calcium carbonate in eggshells. Introduction To avoid the breakage of eggs before reaching market, the eggshells needs to be as strong as possible. The strength of eggshells is mainly determined by the percentage of calcium carbonate in it. In order to monitor the quality of eggshells, the following experiment has to be done to determine the percentage of calcium carbonate in eggshells. In this experiment, back titration is used. First, excess acid is reacted with the calcium carbonate in eggshells: 2HCl(aq) + CaCO3(s) CaCl2(aq) + H2O(l)+ CO2(g) Later, if we can find out the number of mole of unreacted acid, number of mole of calcium carbonate can then be found out. The number of mole of unreacted acid can be found by titration with the following reaction: HCl(aq) + NaOH(aq) H2O(l) + NaCl(aq) Percentage by mass of calcium carbonate in eggshell can then be calculated by the following formula: % by mass of CaCO3 = Requirements eggshell burette, 50 cm3, and stand pipette, 25 cm3 pipette filler methyl orange indicator M NaOH solution, standardized 1 M hydrochloric acid, standardized ethanol wash-bottle with de-ionized water mortar and pestle forceps safety spectacles 2 beakers, 100 cm3 volumetric flask, 250 cm3 filter funnel, small magnetic stirrer pH meter electronic balance Procedures 1. The attached membrane of the eggshell was removed carefully by forceps and the remaining eggshell was ground into a fine po wder with mortar and pestle. 2. 2 g of powder was weighed accurately by the difference on an electronic balance and put into a beaker on a magnetic stirrer.

Prospects and Perception of Islamic Life Insurance

Prospects and Perception of Islamic Life Insurance Chapter 1 Introduction Background to study: Insurance is a financial industry which has surfaced as a colossal industry for both in Muslim and Non Muslin world. In Conventional Insurance there are many elements, activities and procedures which are considered unethical, unlawful and unislamic by majority of Islamic scholars. Elements such as uncertainty, gambling and excessive interest are the main culprits. (Khair Bakhsh, 2009). For the satisfaction of Muslim concern, market experts and Islamic scholars introduced an insurance with the name of Takaful.The increase in demand of Takaful system and the presence of large markets for its products is compelling the entitled authorities to introduce it in Pakistan as soon as possible. Problem Statement: What are the prospects and perception of Islamic life insurance in Peshawar? Purpose of the study: To review why convention system is prohibited in Islam To compare Islamic Life Insurance (Takaful) with Contemporary Life Insurance. To find out justification of an Islamic Life Insurance (Takaful) Analysis of prospects of Takaful in Peshawar City. Methodology Applied Research: In this research I will be studying existing Islamic life insurance system and adding no new finds to body of knowledge. Scheme of study Type of investigation: This is a descriptive study: The format, which will be followed in this study, is to find out justification of an Islamic Life Insurance and what are its prospects in Peshawar. Cross-sectional Data: In this research I will observe and study secondary data regarding Islamic Life Insurance and Conventional life Insurance system. Unit of Study: My research unit of analysis will be organization Study Settings: Field Study: Study will be done in natural settings in which variables will not be controlled. Researchers interference: In this study researchers interference will be minimal and has no direct interference with the Islamic life insurance organizations because I am not allowed to interfere in the organizations. Methodology: The methods I will be using in the report are both Primary and Secondary data collection. Secondary Data: For this research I will use secondary data. Sources: Internet Leading newspaper articles Books related to Islamic life Insurance (Takaful) Research instruments: The instruments which will be used in my research to collect primary data are: Observations Questionnaires. Sample Size: I will be distributing questionnaires. Sampling Techniques: The sampling technique will be simple random sampling that will help in reducing the biasness factor in the research. Limitations: The scope of my research will be limited to students of universities in Peshawar because of time and other limited resources. Scheme of the report: The report will consist of the following parts. Introduction Literature Review Findings Analysis Conclusion and Recommendations Literature survey Meaning of Takaful: Takaful is a form of mutual assistance (Taawun) strengthened by aiding the ones who are in problems and deserve to be helped.(Dr.Masum) (2009). According to him, Islamic Scholars have begun to accept and conclude to the viewpoint that Takaful is according to Shariah principles. Numerous Islamic conferences are being held and Shariah Councils are emphasizing by creating awareness amongst the Muslims that Takaful operations are free from unIslamic elements thus the development of Takaful in the market is to cater to the needs of Muslim by providing them products and services in accordance to Islam. â€Å"Overtime, greater understanding on the concept of Islamic Insurance has emerged as the concept of Takaful, based on the contract of Tabarru (donation) and Mudarabah profit sharing.† â€Å"Takaful is an alternative form of Conventional Insurance based on the concept of trusteeship and cooperation inspired by the beliefs of the followers of Islamic teachings. Murtaza Ali (2007). It can be concluded that takaful is an Islamic way of dealing with uncertainties via mutual assistance and it is social scheme developed on the principals of brotherhood, solidarity and mutual assistance. Takaful is rooted from an Arabic word Kafal, which means that ones needs should be taken care of. According to this scheme participants jointly agree to bind themselves against damages caused by hazards. â€Å"Takaful is a legally binding agreement between all the participants of the scheme to pay any of the members who suffers a loss as specified in the Takaful certificate†. (Dr.Masum)(2009). Muhaimin Iqbal (2005), Abdul Rahim, Wahab and Kabir Hassan explain Takaful as a scheme that is derived from the concept of Taawun and the concept of Takaful is similar to Conventional mutual risk sharing. Takaful has a fixed maturity period and is considered long term saving tool. Apart from giving benefits of return it also provides a mutual financial assistance among participants. â€Å"A Programme that pools efforts to help the needy in times of need due to immediate deaths or mishaps resulting in personal injury or disablement†. (Bank Negara Malaysia) Scholars like Dr.Yusof Qaradawi (July 2007) state â€Å"Our observation that the modern current practices are objectable Islamic ally does not mean that Islam is against Insurance: it only opposes the means and methods.† According to the author the Islamic insurance companies will use the contract of donations and provide compensation and the operation of the company shall not get engaged in any unislamic elements. HISTORICAL PERSPECTIVE; â€Å"Muslims were involved in Marine activities in the Mediterranean and Indian Ocean from the seventh century on†. Chaim-Vardit (2009).† â€Å"The rough model of Takaful was practiced by Arabian tribes, holding to the principal of pooled resources to help the needy on the voluntary basis† Masum Billah (2001). Tamim become the first insurance term in Arabic only in 20th century and it is believed that Ibn Abidin, a Hanafite Jurist who died in 1836,is the First Muslim to coin name Insurance Sukara (security) influenced by Italian term Siguare and Turkish Sigorta. Chaim-Vardit (2009). Merchants of Mecca used to form a group of Mutual funds with a purpose to help the victims or survivors of natural hazards during their commercial ventures into Syria, Iraq and other countries. Such a practice was supported and even contributions were made by Prophet Muhammad (P.B.U.H) while trading with the capital of Hazrat Khadija. Aziz-Abdul (2005) â€Å"The period lasting from the fall of Rome until the Dawn of Islam was the darkest, most corrupt and unsettled period in the known history to man. Hence the Dawn of Islam removed darkness from the face of life and brought the environment of security and stability to the areas which came under the influence of Islam.† According to Chaim-Vardit, Shariah recognizes several transactions and institutions which function in a way similar to certain type of Insurance. The typical ones are: Daman (guarantee) is synonymous to â€Å"Kafala† is used with risk or responsibility that one bears with regard to property of which one enjoys profit. Daman Khatar al Tariq (guarantee against travel hazards). In this type of transaction, the person himself wishes to be compensated for a future possible loss. Wala al Muwalat-This type of transaction was prohibited by Prophet Muhammad (P.B.U.H). The problem was this type of transaction established new ties, as strong as blood ties, outside the family was unbearable. Diya (blood money)-compensation to victim or victims family for unintentional killing or bodily injury. Mudaraba-is not mentioned in Quran and there is much doubt whether it is mentioned in Hadith Zakat-means growth and purity. It is often mentioned as equal to modern social Insurance and there have been modern attempts made in Islamic states as Saudi Arabia and Pakistan to apply Zakat. The institution of Waaf (endowment)-the property endowed as Waaf was intended to support the poor, staff of mosques, hospitals, to maintain city facilities and the two holy cities. Jizya-tax levied on non-Muslims residing in Islamic State and provides then with security for their lives and property. Holy Prophet (P.B.U.H) emphasised that a Muslim should protect itself from hazards and risks via transfering the risk through Takaful Model.The life of a muslim is Controlled and destiny by Allah (S.A.T) but it does not mean that a Muslim cannot protect itself but indeed a Muslim in Islam should gurad itself from misfortunes, hazards, risks and uncertanities.Dr.Masum (2001). Types of Takaful Structures: â€Å"There is no single â€Å"best† model that exists for takaful. Shariah scholars worldwide concur on fundamental components that characterize a takaful scheme, yet in their judicial opinions (fatwas), operational differences are tolerated as long as they do not contradict essential religious tenets.† Ms Shakun Ashoka Raj (2007). There has been a tremendous research done on the takaful models which includes work of prominent authors like Dr.Masum (2001), Hassan, Rahim and Wahab (May June 2007). According to Hassan, Rahim and Wahab (2007) for the Mudarabah contract to be allowed and carried in Islam requires a number of elements to be present: The capital provider (participant); The entrepreneur (takaful operator); Capital an appropriate activity; Profit and loss sharing and offer and acceptance. In the mudaraba contract, the two parties know as provider (rab ul maal) and the entrepreneur or takaful operator (mudarib) operates on a joint venture basis. †An investment on a Mudarabah basis of 100 should at the end of the period give more then 100 to be termed as profit and for the operators to share that.† The other takaful model is known as agency or wakala model. On the basis of this principal, a person delegates his right or business to the other people/person to act as his agent or wakil. The agent is responsible to contribute his knowledge, skills, and abilities in performing the tasks assigned to him in the best manner. According to Dr.Masum (2001) in the Wakala model the salary of the agent who rendered the services is subtracted against the fool of funds. The net funds will be used for the purpose of investment and profits will be distributed accordingly. Similarly author Rahim, Wahab and Hassan â€Å"Under a typical wakala model, the Tabarru (donation) remains the property of the participants unless consumed, as they have the right to receive the surplus back and therefore it becomes a conditional gift.† Tijari model (business) commonly uses both the pure Mudarabah and modified Mudarabah approaches. Dr.masum is of the opinion, that modified Mudarabah approach is used where deduction of expenses is taken into consideration and as result more expensive premium is charged from the participants in order to cover the operational expenses while on the other hand Pure mudarabah approach is used where there are no operational expenses charged. Waqf model-this model operates on non-profit basis that collects donation from individuals or firms who willingly want to contribute something positive to the society. Social organizations and enterprise are engaged in such type of activity. Shakun Ashoka Raj (2007). Concepts of beneficiaries in Takaful It is vital to test the beneficiary in the policy inorder to find that whether the beneficiary is the right person to be tranferred the benefits.In order to do so the following concepts are under taken : Al-Wasiyah (bequest) Al-Mirath (inheritance) Al-Milkiyah (ownership) In the Takaful Model if the policy holder outlives the policy duration then under such circumstances the policy holder is entitled for the benefits and he is the only owner but in Waqf model the sole owner is Allah (S.A.T) and no one can claim the property or benefits. Dr.Masum (2001). After death of the policy holder the following stages are inoccured before the distribution of benefits of the policy. Wealth heald by the policy holder is adding with total benefits If there are any debts left by the policy holder then from the total weath those debts are paid off . For the remaining the funeral expenses will be deducted. The remaining property or any thing left is disrtibuted under the principals of Al wasiyah and Al mirath. Al Wasiyah Under the islamic principal the policy holder can give away via will 1/3 of the property. This is to reduces injustice that may be caused by the policy holder by giving his benefits not to his legal heirs . Al Mirath After making payments of loan taken by Policy holder, excluding funeral expenses from the remaining property and cash left by the deceased and executing his will, the remaing benefits ,property and cash left is distributed among the legal heirs of the policy holder via Islamic methods. CONVENTIONAL LIFE INSURANCE INSURANCE: Insurance is a medium via which people transfer the burden of uncertainty (financial loss) to the insurer, for an agreed financial attention known as â€Å"Premium†. In return, the issuer promises to provide financial compensation to the insured for particular loss occurring. The clients of the policy are known as policyholders. Human life is exposed to risks of death and disability due to natural disasters and accidents. Property possessed by man is exposed to various man made and natural hazards. Simultaneously man himself is exposed to different diseases, deadly viruses, the cure for which involves huge expenses. A family might have to face serious financial and moral hazards as a human life is lost or a person is disabled temporarily or permanently. If an individuals property is damaged, it might result in decline in income of the individual. Life insurance gives protection to an individual during his/her lifetime and after his death too. So we can say that it is an agreement that guarantees the payment of agreed amount of monetary benefit to the insured. There are number of companies offering Life insurance policies. The more the time period of the policy the greater its benefit e.g. if a person purchases a policy for the period of 10 years, he will get its benefit after 10 years but if he dies during this time frame, his family will get its benefit. The insurance company reviews variables that are likely to affect the health and how long and individual lives after receiving an application by individual for life insurance policy. Actuarys Statistical Analysis is performed by a person know as â€Å"Actuary† who determines whether the individual is a good â€Å"risk† to insure. Insurance premium is calculated, the older an individual, the higher the life insurance premium to be paid. Insurance premium can also be higher if an individual has health issues like higher cholesterol. If the insurance company agrees to provide insurance the agent will deliver the life insurance contract. The contract will include: The amount of money to be paid when the policyholder dies. How long the contract lasts. The amount of premium that needs to be paid by the policyholder. The policyholder will need to name the beneficiary to whom the benefit of the policy will be transferred in the event of death of policyholder. HISTORICAL DEVELOPMENT OF INSURANCE: Insurance is as old as the development of human society. In a society there are two types of economies Money economy Natural economy. Natural economy is more old then the money economy where people form community to help each other. For example if the house of a person gets burnt, the community members will pool in funds and reconstruct the house. Money economy practiced the transfer or distribution of risk by the Chinese and the Babylonian traders in the 2nd and 3rd millennium B.C. Achaemenian monarchs of Iran were the first to insure their people and that process was registered in the governmental notary offices. Life Insurance primarily established to provide protection against risk and catastrophes to people who were dieing very early, people who were aged and people who as a result of accident were disabled. This was practiced made possible by sharing and transferring risk with other individuals of the society. The idea of insuring oneself against risk is as old is mankind. Early times in England, societies were formed. Relief to the family of members of the societies would be given by making little sum of payments, if the grains of the farmers were damaged. The first life insurance company was established in England in 1705 and named the Amicable Society for Perpetual Assistance. Life insurance developed from these small beginnings into colossal industry, which gives people sense of security they require to maintain financial stability, moral and faith against inflation, deflation, wars, boom, panic and all sort of devastation. Life insurance gives individuals sound financial back up to move forward as it is based on scientific principles. Life Insurance companies were the only companies to pay their dues fully and survive the crisis of recession while the banks and other investment companies failed to do so. The purpose of selling life insurance is to make sure that it provides fresh air to people to start a life. In the larger view the life insurance policy becomes the reason for the beneficiary to begin a new life. Life insurance does active saving, utilization of funds and reserves for hazards and opportunities. It is a medium of savings, protection and growth and it has given people peace of mind and financial soundness. TYPES OF LIFE INSURANCE There are many different classification of life insurance each satisfying different need of individuals. Life insurance can be broadly divided into two main types: Term Assurance Whole Life Assurance Term Assurance: It is the least expensive Insurance and is available in various forms. This form of insurance is opted if the individual cannot afford other types of insurance or when temporary protection is needed. The premium from this type of insurance is free from element of investment. Term Assurance policy in case of death of policy holder during the specified years is bounded to provide lump sum amount of agreed money but if the individual outlives, then in such circumstances the contract is ceased and no money is to be provided to the policyholder. Term Life Insurance policy lengths for: One-year term policy- promises to pay the beneficiaries of the policyholder the agreed amount of money if the insurer dies within one-year tem policy. Five years promises to pay the beneficiaries of the policyholder the agreed amount of money if the insurer dies within five-year term policy. Ten years, fifteen and twenty year term policy is also known as long term policy. TYPES OF TERM ASSURANCE: Renewable term life policy –In this term life policy, the policyholder automatically qualifies to continue the policy when the specified time of the policy ends. Non-Renewable term life policy- this term life policy, the policy holder does not automatically qualifies to continue the policy when the specified time of the policy ends instead the individual has to re-qualify for the policy by undergoing physical examination in order to determine the health condition. Convertible term life policy-In this type of term policy the insured has the choice to covert this type of policy into permanent life insurance policy into variable insurance, whole or universal life insurance. Non-Convertible term life policy- simply means that policyholder cannot switch the policy to another type life insurance policy. WHOLE LIFE INSURANCE: This policy last the whole (entire) life of the insured. If the policyholder stops paying the premium he/she can get the benefit paid till date. Because of this reason it is an expensive life insurance policy. For example the funeral policy in which expenses are covered for the funeral of the person passed away. Full payment for the policy is taken at the time of purchases of policy. Whole life insurance policy can be divided into two types: Ordinary Life Insurance Limited Payment Life Insurance Ordinary life insurance: It is also know as straight life insurance. In this type of insurance policy the insurer is give lifetime security. For example if the insurer is alive at 100, then he is to be paid the benefit if the policy or the agreed amount of money. Under this policy of life insurance the policyholder is charged high premiums in the start of the policy and charged less premium during the last years of the policy. The life insurance company invests the premium of the policyholder to accumulate a cash surrender value. The policyholder can withdraw from the policy by taking the cash value or borrowing cash value at lower interest rates. The cash value is relatively small in the start of the year and increases with years. LIMITED PAYMENT LIFE INSURANCE: This life insurance policy is also known as â€Å"limited pay life insurance† in which individual pays for the specific time period and enjoys the policy for the rest of his/her life. The face amount of the policy is paid tax free to the beneficiaries the policyholder mentioned. This face amount can be paid on monthly basis or in lump sum amount. If the Policyholder mentioned to make payment to the beneficiary on monthly basis then the policyholder has four options to choose from: Life Income-In this policy the beneficiary of the policyholder is paid on the monthly basis as long as the beneficiary lives. Fixed Period Income-In this type of policy, the policyholder asks the insurance company to pay the beneficiary after his death the proceeds in equal amount over the period of ten years. The years determined are dependent on the wish of the policyholder. Fixed Amount Income-In this type of policy the policy holder asks the insurance company that after his death the nominated beneficiary should be paid lets suppose Rs.1000 a month till the proceeds are exhausted Interest Options-In this the policy holder asks the insurance company that after his death the benefit of the policy should be reinvested by the insurance company and the interest from the investment made should be provided to the nominated beneficiary each year. OTHER FORMS OF LIFE INSURANCE: Endowment Life Insurance- This policy is for a specific time period. The face value is paid to the nominated beneficiary if the policyholder dies during the specific period but if he is alive then the policyholder is paid the benefit of the policy. Variable Life Insurance-This policy is for the whole life. The policyholder is given option to decide the amount he wants to invest in life insurance and the amount he wants to invest in other investment opportunities like buying stocks. It has a guaranteed death benefit, which is based on forecasted interest rates. Theses rates are not fixed indeed vary from company to company. Universal Life Insurance-This policy charges less premium in the start but does not provide death benefit or cash value as this policy is flexible in terms of premium payments and timing. Second To Die Life Insurance- This policy is designed for couples.(married).The benefit of the policy is provided to the heirs of the policyholders only when the surviving spouse dies. Juvenile Life Insurance-The purpose of this policy is to provide safeguard to the children. The guardian or the parent of the child purchases policy in order to secure the minor from mishaps. Modified Life Insurance Policy-In this life insurance policy higher premium are charged at the later years of the specified time. It is suitable for those individuals who believe that their salary/income will increase in the future. METHODS FOR PROVIDING LIFE INSURANCE PROTECTION: There are two methods that are actively used to provide life insurance to individuals. Annual Renewable Term Level Premium method Annual Renewable Term: This type of life insurance policy has overcome the challenge of insurability simply meaning that the policyholder can renew the policy without under going medical examination or providing sound health evidence. Because of poor health or other mishaps the insurer might not be allowed to renew the policy. So annual renewable policy (ART) ignores the insurability element, they simply pay the renewal premium. The policy period varies from 10 to 30 years and for the till the age of 95 mostly. In such policy the premium to be paid is much higher then other life insurance policies. The more the age the higher the premium to be paid and thus the greater the return on the policy. The premium is calculated by determining the death rate of each age group. For Example: A group of 1000 males (non-alcoholic) at the age of 40 wants to get a life insurance for $1000.The death rate of males at the age of 40 is .332% out of 1000.This means that the insurance company would have to pay $.3220 for the death claim. The insurance company would have to collect $.3.20 from each policyholder in order to cover the death claims. The yearly renewable insurance premium increases, as the individual gets older. Premium sharply rises during the later years, because as the age grows the death rate also grows. LEVEL PREMIUM METHOD: In this type of life insurance policy the premium remains the same for the agreed number of years. The time frame varies from 10, 15, 20 to 30 years. This life insurance policy provides insurance to age 100.If the insurer survives till the age of 100 then the face value of the policy is paid to the policyholder. The premium charger in the early age is higher in order to cover for the morality expenses. Level Premium method is also know as ‘Legal Reserve† because the money invested by the company is according to the state law. The state requires the company to maintain a minimum amount of liquid so that it is able to pay for the agreed claims. The legal reserve that the insurance company maintains is equal to the present value of the future death claims minus present value of future premiums. The main objective of the legal reserve is to provide lifetime security. The policyholder has an option to withdraw from the policy by just taking the cash value which is less then the legal reserve because of deductions of expenses like sales. UNISLAMIC ELEMENTS IN CONVENTIONAL LIFE INSURANCE Conventional insurance contains the elements that are unacceptable in Islam which include Riba Maisir Gharar Riba –also termed as interest, is present in conventional life insurance. Loans granted by companies are charged on interest. An insured upon his death receives greater then he has paid. This is not permissible in Islam. Insurance funds stocks/bonds contain the element of interest Those who eat riba (usury) will not stand (on the Day of Resurrection) except like the standing of a person beaten by Shaitan (Satan) leading him to insanity. That is because they say, Trading is only like riba or usury, whereas Allah has permitted trading and forbidden riba. So whosoever receives an admonition from his Lord and stops eating riba shall not be punished for the past; his case is for Allah (to judge): but whoever returns to riba, are dwellers of the Fire they will abide therein. â€Å"Al-Quran, Al-Baqarah (2). 275 Maisar- It refers to gambling or game of chance. Gambling of all forms/types is prohibited in Islam. The gambler tries to win mass wealth without making an effort. When the policyholder dies after only paying a small amount of premium his/her nominated beneficiary receives the benefit in term of monetary, which the policyholder has no idea where the amount has come from. Al-Maisir is referred to in the Quran as follows: O you who believe intoxicants (all kind of alcoholic drinks) and gambling, and Al-Ansab (ways for seeking luck) are an abomination of Shaitan (Satan). So avoid strictly all that (abomination) in order that you may be successful. Al-Quran, AI-Maidah (5): 90 Uncertainty -It is an element which is termed as gharar, is prohibited in Islam. In business terms gharar means undertaking business deals which are riskier and individuals do not posses sufficient knowledge about them. A contract which contains uncertainty due to: Occurring time is not known. The amount payable is not known. Whether the payment will be accepted as agreed. HARAM/HALAL-Islam does not allow individuals to invest money in unIslamic activities. Insurance companies may invest in bonds or tobacco companies or any unethical activity which is not permissible in Islam then taking insurance from such companies is considered haram. ISLAMIC LIFE INSURANCE The transaction of an Islamic life insurance system aims to protect the life of widows, orphans and the dependents of the deceased against future risks and hazards. It follows the principal of Al-Mudaraba financing. Under this principal the insured and insurer mutually agree to co-operate. The insured dependants are protected of future hazards as well as donations are made for the uplift of poor individual who face accidents in Islamic society. This concept was present and practiced during the times of Holy Prophet (P.B.U.H). In Islamic life Insurance policy the nominee is just acting as a trustee and is not considered the absolute beneficiary. The purpose/responsibility of the individual nomination (nominee) by the assured is to distribute the benefit to the heirs of the deceased under the principal pf Mirath and Wasiyah. In Islamic life insurance policies there are two situation in which the benefits of the policy are transferred i) the insurer can claim from the insurer the benefi ts if he outlives the time mentioned in the policy a) the paid premiums b) the profits made upon the paid premiums and c) the dividends/bonus made according to the company policy. In the other situation if the insured is not alive or passed away during the policy, the benefits are transferred to the nominee (selected by insured) and it is mandatory for the nominee to distribute the benefits of the policy among the heirs of the policyholder. The benefits include a) paid premium b) profits made on the paid premiums c) bonus/dividends make the company policy and d) donations from the companys charitable funds according to the policy selected by the assured. The benefits of the Islamic life insurance policy are not just claimed by individuals who face natural death/accidents but the benefit are also provided to people insured and passing in unlawful death example suicide/murders. The reason for that is life and death can only be det Prospects and Perception of Islamic Life Insurance Prospects and Perception of Islamic Life Insurance Chapter 1 Introduction Background to study: Insurance is a financial industry which has surfaced as a colossal industry for both in Muslim and Non Muslin world. In Conventional Insurance there are many elements, activities and procedures which are considered unethical, unlawful and unislamic by majority of Islamic scholars. Elements such as uncertainty, gambling and excessive interest are the main culprits. (Khair Bakhsh, 2009). For the satisfaction of Muslim concern, market experts and Islamic scholars introduced an insurance with the name of Takaful.The increase in demand of Takaful system and the presence of large markets for its products is compelling the entitled authorities to introduce it in Pakistan as soon as possible. Problem Statement: What are the prospects and perception of Islamic life insurance in Peshawar? Purpose of the study: To review why convention system is prohibited in Islam To compare Islamic Life Insurance (Takaful) with Contemporary Life Insurance. To find out justification of an Islamic Life Insurance (Takaful) Analysis of prospects of Takaful in Peshawar City. Methodology Applied Research: In this research I will be studying existing Islamic life insurance system and adding no new finds to body of knowledge. Scheme of study Type of investigation: This is a descriptive study: The format, which will be followed in this study, is to find out justification of an Islamic Life Insurance and what are its prospects in Peshawar. Cross-sectional Data: In this research I will observe and study secondary data regarding Islamic Life Insurance and Conventional life Insurance system. Unit of Study: My research unit of analysis will be organization Study Settings: Field Study: Study will be done in natural settings in which variables will not be controlled. Researchers interference: In this study researchers interference will be minimal and has no direct interference with the Islamic life insurance organizations because I am not allowed to interfere in the organizations. Methodology: The methods I will be using in the report are both Primary and Secondary data collection. Secondary Data: For this research I will use secondary data. Sources: Internet Leading newspaper articles Books related to Islamic life Insurance (Takaful) Research instruments: The instruments which will be used in my research to collect primary data are: Observations Questionnaires. Sample Size: I will be distributing questionnaires. Sampling Techniques: The sampling technique will be simple random sampling that will help in reducing the biasness factor in the research. Limitations: The scope of my research will be limited to students of universities in Peshawar because of time and other limited resources. Scheme of the report: The report will consist of the following parts. Introduction Literature Review Findings Analysis Conclusion and Recommendations Literature survey Meaning of Takaful: Takaful is a form of mutual assistance (Taawun) strengthened by aiding the ones who are in problems and deserve to be helped.(Dr.Masum) (2009). According to him, Islamic Scholars have begun to accept and conclude to the viewpoint that Takaful is according to Shariah principles. Numerous Islamic conferences are being held and Shariah Councils are emphasizing by creating awareness amongst the Muslims that Takaful operations are free from unIslamic elements thus the development of Takaful in the market is to cater to the needs of Muslim by providing them products and services in accordance to Islam. â€Å"Overtime, greater understanding on the concept of Islamic Insurance has emerged as the concept of Takaful, based on the contract of Tabarru (donation) and Mudarabah profit sharing.† â€Å"Takaful is an alternative form of Conventional Insurance based on the concept of trusteeship and cooperation inspired by the beliefs of the followers of Islamic teachings. Murtaza Ali (2007). It can be concluded that takaful is an Islamic way of dealing with uncertainties via mutual assistance and it is social scheme developed on the principals of brotherhood, solidarity and mutual assistance. Takaful is rooted from an Arabic word Kafal, which means that ones needs should be taken care of. According to this scheme participants jointly agree to bind themselves against damages caused by hazards. â€Å"Takaful is a legally binding agreement between all the participants of the scheme to pay any of the members who suffers a loss as specified in the Takaful certificate†. (Dr.Masum)(2009). Muhaimin Iqbal (2005), Abdul Rahim, Wahab and Kabir Hassan explain Takaful as a scheme that is derived from the concept of Taawun and the concept of Takaful is similar to Conventional mutual risk sharing. Takaful has a fixed maturity period and is considered long term saving tool. Apart from giving benefits of return it also provides a mutual financial assistance among participants. â€Å"A Programme that pools efforts to help the needy in times of need due to immediate deaths or mishaps resulting in personal injury or disablement†. (Bank Negara Malaysia) Scholars like Dr.Yusof Qaradawi (July 2007) state â€Å"Our observation that the modern current practices are objectable Islamic ally does not mean that Islam is against Insurance: it only opposes the means and methods.† According to the author the Islamic insurance companies will use the contract of donations and provide compensation and the operation of the company shall not get engaged in any unislamic elements. HISTORICAL PERSPECTIVE; â€Å"Muslims were involved in Marine activities in the Mediterranean and Indian Ocean from the seventh century on†. Chaim-Vardit (2009).† â€Å"The rough model of Takaful was practiced by Arabian tribes, holding to the principal of pooled resources to help the needy on the voluntary basis† Masum Billah (2001). Tamim become the first insurance term in Arabic only in 20th century and it is believed that Ibn Abidin, a Hanafite Jurist who died in 1836,is the First Muslim to coin name Insurance Sukara (security) influenced by Italian term Siguare and Turkish Sigorta. Chaim-Vardit (2009). Merchants of Mecca used to form a group of Mutual funds with a purpose to help the victims or survivors of natural hazards during their commercial ventures into Syria, Iraq and other countries. Such a practice was supported and even contributions were made by Prophet Muhammad (P.B.U.H) while trading with the capital of Hazrat Khadija. Aziz-Abdul (2005) â€Å"The period lasting from the fall of Rome until the Dawn of Islam was the darkest, most corrupt and unsettled period in the known history to man. Hence the Dawn of Islam removed darkness from the face of life and brought the environment of security and stability to the areas which came under the influence of Islam.† According to Chaim-Vardit, Shariah recognizes several transactions and institutions which function in a way similar to certain type of Insurance. The typical ones are: Daman (guarantee) is synonymous to â€Å"Kafala† is used with risk or responsibility that one bears with regard to property of which one enjoys profit. Daman Khatar al Tariq (guarantee against travel hazards). In this type of transaction, the person himself wishes to be compensated for a future possible loss. Wala al Muwalat-This type of transaction was prohibited by Prophet Muhammad (P.B.U.H). The problem was this type of transaction established new ties, as strong as blood ties, outside the family was unbearable. Diya (blood money)-compensation to victim or victims family for unintentional killing or bodily injury. Mudaraba-is not mentioned in Quran and there is much doubt whether it is mentioned in Hadith Zakat-means growth and purity. It is often mentioned as equal to modern social Insurance and there have been modern attempts made in Islamic states as Saudi Arabia and Pakistan to apply Zakat. The institution of Waaf (endowment)-the property endowed as Waaf was intended to support the poor, staff of mosques, hospitals, to maintain city facilities and the two holy cities. Jizya-tax levied on non-Muslims residing in Islamic State and provides then with security for their lives and property. Holy Prophet (P.B.U.H) emphasised that a Muslim should protect itself from hazards and risks via transfering the risk through Takaful Model.The life of a muslim is Controlled and destiny by Allah (S.A.T) but it does not mean that a Muslim cannot protect itself but indeed a Muslim in Islam should gurad itself from misfortunes, hazards, risks and uncertanities.Dr.Masum (2001). Types of Takaful Structures: â€Å"There is no single â€Å"best† model that exists for takaful. Shariah scholars worldwide concur on fundamental components that characterize a takaful scheme, yet in their judicial opinions (fatwas), operational differences are tolerated as long as they do not contradict essential religious tenets.† Ms Shakun Ashoka Raj (2007). There has been a tremendous research done on the takaful models which includes work of prominent authors like Dr.Masum (2001), Hassan, Rahim and Wahab (May June 2007). According to Hassan, Rahim and Wahab (2007) for the Mudarabah contract to be allowed and carried in Islam requires a number of elements to be present: The capital provider (participant); The entrepreneur (takaful operator); Capital an appropriate activity; Profit and loss sharing and offer and acceptance. In the mudaraba contract, the two parties know as provider (rab ul maal) and the entrepreneur or takaful operator (mudarib) operates on a joint venture basis. †An investment on a Mudarabah basis of 100 should at the end of the period give more then 100 to be termed as profit and for the operators to share that.† The other takaful model is known as agency or wakala model. On the basis of this principal, a person delegates his right or business to the other people/person to act as his agent or wakil. The agent is responsible to contribute his knowledge, skills, and abilities in performing the tasks assigned to him in the best manner. According to Dr.Masum (2001) in the Wakala model the salary of the agent who rendered the services is subtracted against the fool of funds. The net funds will be used for the purpose of investment and profits will be distributed accordingly. Similarly author Rahim, Wahab and Hassan â€Å"Under a typical wakala model, the Tabarru (donation) remains the property of the participants unless consumed, as they have the right to receive the surplus back and therefore it becomes a conditional gift.† Tijari model (business) commonly uses both the pure Mudarabah and modified Mudarabah approaches. Dr.masum is of the opinion, that modified Mudarabah approach is used where deduction of expenses is taken into consideration and as result more expensive premium is charged from the participants in order to cover the operational expenses while on the other hand Pure mudarabah approach is used where there are no operational expenses charged. Waqf model-this model operates on non-profit basis that collects donation from individuals or firms who willingly want to contribute something positive to the society. Social organizations and enterprise are engaged in such type of activity. Shakun Ashoka Raj (2007). Concepts of beneficiaries in Takaful It is vital to test the beneficiary in the policy inorder to find that whether the beneficiary is the right person to be tranferred the benefits.In order to do so the following concepts are under taken : Al-Wasiyah (bequest) Al-Mirath (inheritance) Al-Milkiyah (ownership) In the Takaful Model if the policy holder outlives the policy duration then under such circumstances the policy holder is entitled for the benefits and he is the only owner but in Waqf model the sole owner is Allah (S.A.T) and no one can claim the property or benefits. Dr.Masum (2001). After death of the policy holder the following stages are inoccured before the distribution of benefits of the policy. Wealth heald by the policy holder is adding with total benefits If there are any debts left by the policy holder then from the total weath those debts are paid off . For the remaining the funeral expenses will be deducted. The remaining property or any thing left is disrtibuted under the principals of Al wasiyah and Al mirath. Al Wasiyah Under the islamic principal the policy holder can give away via will 1/3 of the property. This is to reduces injustice that may be caused by the policy holder by giving his benefits not to his legal heirs . Al Mirath After making payments of loan taken by Policy holder, excluding funeral expenses from the remaining property and cash left by the deceased and executing his will, the remaing benefits ,property and cash left is distributed among the legal heirs of the policy holder via Islamic methods. CONVENTIONAL LIFE INSURANCE INSURANCE: Insurance is a medium via which people transfer the burden of uncertainty (financial loss) to the insurer, for an agreed financial attention known as â€Å"Premium†. In return, the issuer promises to provide financial compensation to the insured for particular loss occurring. The clients of the policy are known as policyholders. Human life is exposed to risks of death and disability due to natural disasters and accidents. Property possessed by man is exposed to various man made and natural hazards. Simultaneously man himself is exposed to different diseases, deadly viruses, the cure for which involves huge expenses. A family might have to face serious financial and moral hazards as a human life is lost or a person is disabled temporarily or permanently. If an individuals property is damaged, it might result in decline in income of the individual. Life insurance gives protection to an individual during his/her lifetime and after his death too. So we can say that it is an agreement that guarantees the payment of agreed amount of monetary benefit to the insured. There are number of companies offering Life insurance policies. The more the time period of the policy the greater its benefit e.g. if a person purchases a policy for the period of 10 years, he will get its benefit after 10 years but if he dies during this time frame, his family will get its benefit. The insurance company reviews variables that are likely to affect the health and how long and individual lives after receiving an application by individual for life insurance policy. Actuarys Statistical Analysis is performed by a person know as â€Å"Actuary† who determines whether the individual is a good â€Å"risk† to insure. Insurance premium is calculated, the older an individual, the higher the life insurance premium to be paid. Insurance premium can also be higher if an individual has health issues like higher cholesterol. If the insurance company agrees to provide insurance the agent will deliver the life insurance contract. The contract will include: The amount of money to be paid when the policyholder dies. How long the contract lasts. The amount of premium that needs to be paid by the policyholder. The policyholder will need to name the beneficiary to whom the benefit of the policy will be transferred in the event of death of policyholder. HISTORICAL DEVELOPMENT OF INSURANCE: Insurance is as old as the development of human society. In a society there are two types of economies Money economy Natural economy. Natural economy is more old then the money economy where people form community to help each other. For example if the house of a person gets burnt, the community members will pool in funds and reconstruct the house. Money economy practiced the transfer or distribution of risk by the Chinese and the Babylonian traders in the 2nd and 3rd millennium B.C. Achaemenian monarchs of Iran were the first to insure their people and that process was registered in the governmental notary offices. Life Insurance primarily established to provide protection against risk and catastrophes to people who were dieing very early, people who were aged and people who as a result of accident were disabled. This was practiced made possible by sharing and transferring risk with other individuals of the society. The idea of insuring oneself against risk is as old is mankind. Early times in England, societies were formed. Relief to the family of members of the societies would be given by making little sum of payments, if the grains of the farmers were damaged. The first life insurance company was established in England in 1705 and named the Amicable Society for Perpetual Assistance. Life insurance developed from these small beginnings into colossal industry, which gives people sense of security they require to maintain financial stability, moral and faith against inflation, deflation, wars, boom, panic and all sort of devastation. Life insurance gives individuals sound financial back up to move forward as it is based on scientific principles. Life Insurance companies were the only companies to pay their dues fully and survive the crisis of recession while the banks and other investment companies failed to do so. The purpose of selling life insurance is to make sure that it provides fresh air to people to start a life. In the larger view the life insurance policy becomes the reason for the beneficiary to begin a new life. Life insurance does active saving, utilization of funds and reserves for hazards and opportunities. It is a medium of savings, protection and growth and it has given people peace of mind and financial soundness. TYPES OF LIFE INSURANCE There are many different classification of life insurance each satisfying different need of individuals. Life insurance can be broadly divided into two main types: Term Assurance Whole Life Assurance Term Assurance: It is the least expensive Insurance and is available in various forms. This form of insurance is opted if the individual cannot afford other types of insurance or when temporary protection is needed. The premium from this type of insurance is free from element of investment. Term Assurance policy in case of death of policy holder during the specified years is bounded to provide lump sum amount of agreed money but if the individual outlives, then in such circumstances the contract is ceased and no money is to be provided to the policyholder. Term Life Insurance policy lengths for: One-year term policy- promises to pay the beneficiaries of the policyholder the agreed amount of money if the insurer dies within one-year tem policy. Five years promises to pay the beneficiaries of the policyholder the agreed amount of money if the insurer dies within five-year term policy. Ten years, fifteen and twenty year term policy is also known as long term policy. TYPES OF TERM ASSURANCE: Renewable term life policy –In this term life policy, the policyholder automatically qualifies to continue the policy when the specified time of the policy ends. Non-Renewable term life policy- this term life policy, the policy holder does not automatically qualifies to continue the policy when the specified time of the policy ends instead the individual has to re-qualify for the policy by undergoing physical examination in order to determine the health condition. Convertible term life policy-In this type of term policy the insured has the choice to covert this type of policy into permanent life insurance policy into variable insurance, whole or universal life insurance. Non-Convertible term life policy- simply means that policyholder cannot switch the policy to another type life insurance policy. WHOLE LIFE INSURANCE: This policy last the whole (entire) life of the insured. If the policyholder stops paying the premium he/she can get the benefit paid till date. Because of this reason it is an expensive life insurance policy. For example the funeral policy in which expenses are covered for the funeral of the person passed away. Full payment for the policy is taken at the time of purchases of policy. Whole life insurance policy can be divided into two types: Ordinary Life Insurance Limited Payment Life Insurance Ordinary life insurance: It is also know as straight life insurance. In this type of insurance policy the insurer is give lifetime security. For example if the insurer is alive at 100, then he is to be paid the benefit if the policy or the agreed amount of money. Under this policy of life insurance the policyholder is charged high premiums in the start of the policy and charged less premium during the last years of the policy. The life insurance company invests the premium of the policyholder to accumulate a cash surrender value. The policyholder can withdraw from the policy by taking the cash value or borrowing cash value at lower interest rates. The cash value is relatively small in the start of the year and increases with years. LIMITED PAYMENT LIFE INSURANCE: This life insurance policy is also known as â€Å"limited pay life insurance† in which individual pays for the specific time period and enjoys the policy for the rest of his/her life. The face amount of the policy is paid tax free to the beneficiaries the policyholder mentioned. This face amount can be paid on monthly basis or in lump sum amount. If the Policyholder mentioned to make payment to the beneficiary on monthly basis then the policyholder has four options to choose from: Life Income-In this policy the beneficiary of the policyholder is paid on the monthly basis as long as the beneficiary lives. Fixed Period Income-In this type of policy, the policyholder asks the insurance company to pay the beneficiary after his death the proceeds in equal amount over the period of ten years. The years determined are dependent on the wish of the policyholder. Fixed Amount Income-In this type of policy the policy holder asks the insurance company that after his death the nominated beneficiary should be paid lets suppose Rs.1000 a month till the proceeds are exhausted Interest Options-In this the policy holder asks the insurance company that after his death the benefit of the policy should be reinvested by the insurance company and the interest from the investment made should be provided to the nominated beneficiary each year. OTHER FORMS OF LIFE INSURANCE: Endowment Life Insurance- This policy is for a specific time period. The face value is paid to the nominated beneficiary if the policyholder dies during the specific period but if he is alive then the policyholder is paid the benefit of the policy. Variable Life Insurance-This policy is for the whole life. The policyholder is given option to decide the amount he wants to invest in life insurance and the amount he wants to invest in other investment opportunities like buying stocks. It has a guaranteed death benefit, which is based on forecasted interest rates. Theses rates are not fixed indeed vary from company to company. Universal Life Insurance-This policy charges less premium in the start but does not provide death benefit or cash value as this policy is flexible in terms of premium payments and timing. Second To Die Life Insurance- This policy is designed for couples.(married).The benefit of the policy is provided to the heirs of the policyholders only when the surviving spouse dies. Juvenile Life Insurance-The purpose of this policy is to provide safeguard to the children. The guardian or the parent of the child purchases policy in order to secure the minor from mishaps. Modified Life Insurance Policy-In this life insurance policy higher premium are charged at the later years of the specified time. It is suitable for those individuals who believe that their salary/income will increase in the future. METHODS FOR PROVIDING LIFE INSURANCE PROTECTION: There are two methods that are actively used to provide life insurance to individuals. Annual Renewable Term Level Premium method Annual Renewable Term: This type of life insurance policy has overcome the challenge of insurability simply meaning that the policyholder can renew the policy without under going medical examination or providing sound health evidence. Because of poor health or other mishaps the insurer might not be allowed to renew the policy. So annual renewable policy (ART) ignores the insurability element, they simply pay the renewal premium. The policy period varies from 10 to 30 years and for the till the age of 95 mostly. In such policy the premium to be paid is much higher then other life insurance policies. The more the age the higher the premium to be paid and thus the greater the return on the policy. The premium is calculated by determining the death rate of each age group. For Example: A group of 1000 males (non-alcoholic) at the age of 40 wants to get a life insurance for $1000.The death rate of males at the age of 40 is .332% out of 1000.This means that the insurance company would have to pay $.3220 for the death claim. The insurance company would have to collect $.3.20 from each policyholder in order to cover the death claims. The yearly renewable insurance premium increases, as the individual gets older. Premium sharply rises during the later years, because as the age grows the death rate also grows. LEVEL PREMIUM METHOD: In this type of life insurance policy the premium remains the same for the agreed number of years. The time frame varies from 10, 15, 20 to 30 years. This life insurance policy provides insurance to age 100.If the insurer survives till the age of 100 then the face value of the policy is paid to the policyholder. The premium charger in the early age is higher in order to cover for the morality expenses. Level Premium method is also know as ‘Legal Reserve† because the money invested by the company is according to the state law. The state requires the company to maintain a minimum amount of liquid so that it is able to pay for the agreed claims. The legal reserve that the insurance company maintains is equal to the present value of the future death claims minus present value of future premiums. The main objective of the legal reserve is to provide lifetime security. The policyholder has an option to withdraw from the policy by just taking the cash value which is less then the legal reserve because of deductions of expenses like sales. UNISLAMIC ELEMENTS IN CONVENTIONAL LIFE INSURANCE Conventional insurance contains the elements that are unacceptable in Islam which include Riba Maisir Gharar Riba –also termed as interest, is present in conventional life insurance. Loans granted by companies are charged on interest. An insured upon his death receives greater then he has paid. This is not permissible in Islam. Insurance funds stocks/bonds contain the element of interest Those who eat riba (usury) will not stand (on the Day of Resurrection) except like the standing of a person beaten by Shaitan (Satan) leading him to insanity. That is because they say, Trading is only like riba or usury, whereas Allah has permitted trading and forbidden riba. So whosoever receives an admonition from his Lord and stops eating riba shall not be punished for the past; his case is for Allah (to judge): but whoever returns to riba, are dwellers of the Fire they will abide therein. â€Å"Al-Quran, Al-Baqarah (2). 275 Maisar- It refers to gambling or game of chance. Gambling of all forms/types is prohibited in Islam. The gambler tries to win mass wealth without making an effort. When the policyholder dies after only paying a small amount of premium his/her nominated beneficiary receives the benefit in term of monetary, which the policyholder has no idea where the amount has come from. Al-Maisir is referred to in the Quran as follows: O you who believe intoxicants (all kind of alcoholic drinks) and gambling, and Al-Ansab (ways for seeking luck) are an abomination of Shaitan (Satan). So avoid strictly all that (abomination) in order that you may be successful. Al-Quran, AI-Maidah (5): 90 Uncertainty -It is an element which is termed as gharar, is prohibited in Islam. In business terms gharar means undertaking business deals which are riskier and individuals do not posses sufficient knowledge about them. A contract which contains uncertainty due to: Occurring time is not known. The amount payable is not known. Whether the payment will be accepted as agreed. HARAM/HALAL-Islam does not allow individuals to invest money in unIslamic activities. Insurance companies may invest in bonds or tobacco companies or any unethical activity which is not permissible in Islam then taking insurance from such companies is considered haram. ISLAMIC LIFE INSURANCE The transaction of an Islamic life insurance system aims to protect the life of widows, orphans and the dependents of the deceased against future risks and hazards. It follows the principal of Al-Mudaraba financing. Under this principal the insured and insurer mutually agree to co-operate. The insured dependants are protected of future hazards as well as donations are made for the uplift of poor individual who face accidents in Islamic society. This concept was present and practiced during the times of Holy Prophet (P.B.U.H). In Islamic life Insurance policy the nominee is just acting as a trustee and is not considered the absolute beneficiary. The purpose/responsibility of the individual nomination (nominee) by the assured is to distribute the benefit to the heirs of the deceased under the principal pf Mirath and Wasiyah. In Islamic life insurance policies there are two situation in which the benefits of the policy are transferred i) the insurer can claim from the insurer the benefi ts if he outlives the time mentioned in the policy a) the paid premiums b) the profits made upon the paid premiums and c) the dividends/bonus made according to the company policy. In the other situation if the insured is not alive or passed away during the policy, the benefits are transferred to the nominee (selected by insured) and it is mandatory for the nominee to distribute the benefits of the policy among the heirs of the policyholder. The benefits include a) paid premium b) profits made on the paid premiums c) bonus/dividends make the company policy and d) donations from the companys charitable funds according to the policy selected by the assured. The benefits of the Islamic life insurance policy are not just claimed by individuals who face natural death/accidents but the benefit are also provided to people insured and passing in unlawful death example suicide/murders. The reason for that is life and death can only be det