cooperative insurance. Introduced as an Islamic alternative to conventional insurance, in which participants pool their funds on a voluntary basis as a provision against any losses to life, limb, or property that one of them may bear in the future.
literally means solidarity. This term means mutual assurance or insurance under the Sharia'a.
Arabic for solidarity. This term means mutual assurance or insurance under the Sharia.
Quick definition: Islamic insurance Because the concept of insurance relates to uncertainty, which could then be related to interest and gambling, Takaful takes a different approach. The arrangement can be summed up as a charitable collection of funds based on the idea of mutual assistance.
Islamic insurance. Structured as charitable collective pool of funds based on the idea of mutual assistance, takaful schemes are designed to avoid the elements of conventional insurance (i.e., interest and gambling) that are problematic for Muslims.
Takaful is an Islamic insurance concept which is grounded in Islamic muamalat (banking transactions), observing the rules and regulations of Islamic law. This concept has been practised in various forms for over 1400 years. It originates from Arabic word Kafalah, which means "guaranteeing each other" or "joint guarantee".
