BROWSE

Takaful

Definition

Takaful is a co-operative system of reimbursement or repayment in case of loss, organized as an Islamic or sharia compliant alternative to conventional insurance, which Takaful proponents believe contains forbidden riba and gharar.

What is 'Takaful'

Takaful is a type of Islamic insurance, where members contribute money into a pooling system in order to guarantee each other against loss or damage. Takaful-branded insurance is based on Sharia, Islamic religious law, and explains how it is the responsibility of individuals to cooperate and protect each other.

Explaining 'Takaful'

Takaful insurance companies were introduced as an alternative to commercial insurance companies, which go against the riba (interest), al-maisir (gambling), and al-gharar (uncertainty) principles, that are outlawed in Sharia.


Further Reading


Evidence on the relationship between Takaful insurance and fundamental perception of Islamic principles
www.tandfonline.com [PDF]
This book provides the underlying principles of Shariah financial instruments and presented them in actual and practical form. Since 1983, Malaysia has been making significant inroads into the Islamic financials landscape. Today Islamic financial transactions have made their …

Determinants of demand on family Takaful in MalaysiaDeterminants of demand on family Takaful in Malaysia
www.emerald.com [PDF]
This book provides the underlying principles of Shariah financial instruments and presented them in actual and practical form. Since 1983, Malaysia has been making significant inroads into the Islamic financials landscape. Today Islamic financial transactions have made their …

What drives consumers to participate into family takaful schemes? A literature reviewWhat drives consumers to participate into family takaful schemes? A literature review
www.emerald.com [PDF]
This book provides the underlying principles of Shariah financial instruments and presented them in actual and practical form. Since 1983, Malaysia has been making significant inroads into the Islamic financials landscape. Today Islamic financial transactions have made their …



Q&A About Takaful


What does the word "takaful" mean?

It means mutual cooperation and support between individuals who share risk and responsibility for each other's welfare.

Where did takaful originate from?

Takaful originated from Sharia, Islamic religious law, which explains how it is the responsibility of individuals to cooperate and protect each other.

What is Takaful?

Takaful is a type of Islamic insurance.

Who are the members of takaful?

The contributors are the members.

How does takaful work?

The members contribute money into a pooling system in order to guarantee each other against loss or damage.

What do they contribute?

They contribute money into a pooling system in order to guarantee each other against loss or damage.