ABOUT TAKAFUL INSURANCE

TAKAFUL
Takaful, is a unique Islamic concept of shariah compliant insurance. The concept of Takaful Insurance is based on the concept of social solidarity, cooperation and mutual indemnification of losses of members. It is a pact among a group of members who agree to jointly indemnify the loss or damage that may inflict upon any of them out of the funds they donate collectively.


Conceptual framework of Takaful:
The concept of Takaful is established on following principles:
  • The participants co-operate among themselves for their common good;
  • Every participant pays his contribution in order to assist those who need assistance;
  • Takaful contract represents donation agreement which is intended to divide losses and spread liability according to the community pooling system;
  • The element of uncertainty is eliminated insofar as contribution and compensation are defined;
  • It does not aim at deriving advantage at the cost of other individuals.