A Review of Zakat with the Perspective of Social Insurance

Abstract

Zakat is an Islamic institution moored within the Islamic economic system to cater for the Muslims’ social welfare. The term zakat suggests the idea of growth to emphasize that the giving of one ’ s resources is simultaneously an act that cleanses oneself and one ’ s property and, through sharing, enhances the capacity of others. This paper is based on the theoretical research and answers on the various aspects of zakat. Zakat as an act of worship is the icon of Islamic economy justice that ensures equal and upright distribution of wealth. This paper concludes that proper and translucent distribution of zakat will directly impact the equitable distribution of wealth to the society and if managed appropriately Zakat is surely the insurance to the society.