Al-Ijarah Thumma al-Bay' (AITAB) is an innovative product designed for vehicle financing. Since its inception, AITAB has been a popular product due to the heightened demand by customers. Although AITAB is popular, it is not without condemn especially on the issue of using Rule 78, which is similar to conventional Hire-Purchase practise. This paper, attempts to address the issue of using Rule 78 which affects the customers in the case of default. A case study is used to compare the use of Rule 78 and simple profit rate methods on repaying the principal amount and the profit rate by the customer. The discussion is based upon the case on vehicle financing for three years and the impact on the defaulter on the thirteenth month of financing. The result shows the customer pays higher amount in the case of default using the Rule 78 in financing compared to simple profit rate method.

This research provides insights into the factors influencing takaful penetration rate of the Malaysian takaful industry from the period 1985-2008. The methodology employed consist of both the quantitative and qualitative approaches. Three research objectives have been identified. First is to investigate the factors thats influence the market penetration from the perspective of takaful participants. Second is to find the obstacles that prevent non-takaful participants from participating in the takaful industry. Third is to gain further insight from the experience of the senior managers of Takaful operators ...