TAKAFUL

TAKAFUL Takaful is a system of insurance based on the Islamic principles of mutual assistance (ta’awun) and donation (tabarru). Takaful means a joint guarantee, whereby a group of participants contribute towards a pool of money and mutually agree to protect each other by compensating those participants who suffer from an insured peril. Takaful is a type of Islamic insurance wherein members contribute money into a pool system to guarantee each other against loss or damage. Takaful-branded insurance is based on sharia or Islamic religious law, which explains how individuals are responsible to cooperate and protect one another. The core three principles of Takaful are: -Members cooperate among themselves for their common good. -Every member pays a subscription to help those members that might need assistance. -Divide losses and liabilities among the members through a pooling system Takaful insurance companies were introduced as an alternative to those in the commercial insurance industry, which are believed to go against Islamic restrictions on riba (interest), al-maisir (gambling), and al-gharar (uncertainty) principles all of which are outlawed in sharia. -Why Takaful is important -Operation and implementation of Takaful -The present state of the Takaful in the insurance market and more will be examined in our subsequent article. How does Takaful make profit? The premiums paid by the participants are credited into the general Takaful fund, which is then invested and the profits generated are paid back to the fund. Any claims made by participants are paid out of the takaful fund. #benewinsurance #insurtech #inclusiveinsurance #insurance #reinsurance #takaful