Overview
Takaful is an Islamic insurance concept which is grounded in Islamic Muamalat, observing the rules and regulations of Islamic law. It originates from the Arabic word ‘Kafalah’, which means ‘guaranteeing each other’ or ‘joint guarantee’.
In principle, the Takaful system is based on mutual cooperation, responsibility, assurance, protection and assistance between the participants. Each participant contributes into a fund that is used to support one another with each participant contributing sufficient amounts to cover expected claims.
Benefit of Takaful
Policy holders cooperate for the common good of both parties involved. Every policy holder pays his subscription to help those that need assistance. Losses are divided and liabilities spread according to the community pooling system.
Uncertainty is eliminated in respect of subscription and compensation. It does not derive an advantage at the cost of others.
Product Available:
- Motor Takaful
- Personal Accident Takaful
