"Takaful" is a risk management concept that is based on mutuality and partnership. When simply translated "Takaful" means "Joint Guarantee" in which several parties are involved. It brings people together in a joint effort towards safeguarding the interests of all by pooling in their donations so that the unfortunate few may benefit from the contributions of fellowmen. Thus, they become joint owners of the fund and help safeguard its interests.
The rise of "Takaful" was due to the perennial need for a scheme of insurance void of interest, uncertainty and chance to be replaced with transparency, justness and mutual benefit.
"Takaful" is an Islamic insurance concept which is firmly grounded in Islamic financial principles, observing the rules and regulations of Islamic law. This concept has been practiced in various forms for over 1400 years.
Why Takaful?
Participants co-operate for their common good.
Contributions are made to those who are in dire need of assistance.
Losses and liabilities are spread according to a pooling system.
Uncertainties are eliminated through proper preparation.
