IDEAS home Printed from
   My bibliography  Save this article

Economics Of Liability: An Islamic View


  • Monzer Kahf


This paper navigates through the civil liability legal theory in studying its economic effects. It aims at giving an insight of the Islamic system of liability. To do so, it begins with a brief introduction of what a liability system is through a glance at the experience of the United States in this regard. The American system of liability gives the courts a wide range of authority to assess the injury, which includes material, emotional, and loss of future income opportunity, and compensation that aims at not only granting the injured a recuperating sum, but also at deterring the injurer from such a behavior. The most serious economic outcome of the A system are: the grandiose uncertainty and unpredictability, and the huge amount of grants that represents high cost, and sometimes prohibitive, of liability. This led to long and cumbersome litigation, consumer profiteering, forsake of innovative ideas, and shortage of certain products and services. The Islamic system of liability centers on the materiality of the injury, both in its causality and in its outcome, and it provides a list of compensations. Accordingly, recognizable emotional harm is only the one that can actually be materially checked, and recognizable loss of income covers only that actually forgone income during the off work period caused by the injury. As life and parts of the human body are sacred and priceless, the I system leaves it only to revelation to define the amount of compensation for loss of life and bodily parts. The main economic outcome of the I system is its predictability and conservative amounts of compensation. The system also assigns a role for the society both in payment of the grant and in benefiting from the compensation.

Suggested Citation

  • Monzer Kahf, 2000. "Economics Of Liability: An Islamic View," IIUM Journal of Economics and Management, IIUM Journal of Economis and Management, vol. 8(2), pages 85-108, December.
  • Handle: RePEc:ije:journl:v:8:y:2000:i:2:p:85-108

    Download full text from publisher

    File URL:
    Download Restriction: no

    More about this item


    Civil liability; Tort; Islamic tort and Islamic liability;

    JEL classification:

    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • K13 - Law and Economics - - Basic Areas of Law - - - Tort Law and Product Liability; Forensic Economics
    • P59 - Economic Systems - - Comparative Economic Systems - - - Other


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ije:journl:v:8:y:2000:i:2:p:85-108. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gairuzazmi Mat Ghani). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.