• Garba Rabiu Yobe State University
  • Adam Abba Idriss Yobe State University


The objective of this article is to analyze and assess the Yobe State Contributory Health Care Management Agency (YSCHMA) from Islamic perspective to ascertain its compatibility or incompatibility with the approved Islamic insurance or Takaful. The study is based on both secondary and secondary data on Takaful, health insurance scheme and the YSCHMA. YSCHMA was introduced in the year 2020 by the Yobe State Government as all-inclusive health care insurance. The aim of the agency is to fast-track the achievement of Universal Health Coverage through effective pooling of resources and strategic purchasing of qualitative and affordable healthcare services. The finding of the study indicates that a clear Islamic view point on this insurance agency is necessary to avoid indulging in prohibited transactions. In modern-day conventional insurance, the insurance vendor (the insurance company) sells policies and invests the proceeds for the profit of its shareholders, who are not necessarily policyholders. There is, therefore, a clear disjunction between policyholders and shareholders. Payouts to policyholders may vary depending on financial performance, but a minimum positive return is always contractually guaranteed. This seems to be weighing risk and burden of uncertainty upon some parties, while Sharia considers any transaction as a humane. It should relieve parties from the burden of uncertainty and do away with perpetual win-lose affairs. The paper evaluates and examines the compatibility of YSCHMA with Takaful. The paper assesses the risk and uncertainties revolving around its shadow, its functions, types of Takaful and concluded by poring over the similarities and differences between the YSCHMA and Takaful. The paper found out that YSCHMA can fall into family Takaful if some minor amendments can be made. The paper adopts qualitative method in obtaining and analyzing the data.


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