What are the main features of Takaful as a base of Islamic insurance?

In principle, Takaful system is based on mutual co-operation, responsibility, assurance, protection and assistance between groups of participants. In other words, it is the provision of shared contributions to help those who are in need.

What is the concept of Takaful and Re Takaful?

The only difference is that participants (policyholders) of regular takaful products are individuals, businesses, and other commercial organizations. In a retakaful contract, participants (policyholders) are various takaful companies, and the fund operator is the retakaful company.

What are the principles of Takaful?

The core 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. Not to derive advantage at the cost of others.

What is the Takaful term for policy?

Takaful (Arabic: التكافل‎, sometimes translated as “solidarity” or mutual guarantee) 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 contains riba (usury) and gharar (excessive uncertainty).

What are the major differences between Takaful and insurance?

The main difference between conventional insurance and Takaful is that the former is a risk-transfer model whereas the latter is a risk-sharing model. With conventional insurance, there is a transfer of risk from the policyholder to the insurance company in exchange for a premium.

Why do people choose Takaful?

As a socially responsible choice in personal financial security, Takaful contains many elements that assist the needy while serving its purpose in a manner that maintains social integrity.

What is takaful elaborate takaful mechanism in your own words?

Takaful is a type of Islamic insurance wherein members contribute money into a pool system to guarantee each other. Takaful-branded insurance is based on sharia or Islamic religious law and covers health, life, and general insurance needs. Any claims made by participants are paid out of the takaful fund.

Why do people choose takaful?

What is concept of takaful?

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.

What is concept of Takaful?

What are different types of Takaful?

Islamic insurance is based on the principle of mutuality where policyholders own the company and share in its profits. There are three main types of takaful: mudharaba, wakala and a hybrid of the two.

How many types of Takaful are there?

two types
There are two types of Takaful which is family Takaful and general Takaful and then there are various products under both Takaful.

What does takaful stand for in Islamic insurance?

Takaful is the Islamic counterpart of conventional insurance, and exists in both Family (or ‘Life’) and General forms. Takaful is derived from an Arabic word that means joint guarantee, whereby a group of participants agree among themselves to support one another jointly for the losses arising from specified risks.

What kind of insurance company is general takaful?

General Takaful is Qatar Private Shareholding Company (Q.P.S.C) licensed by Qatar Central Bank that has served the insurance needs of individuals and businesses since 2008 on the basis of cooperation in accordance with the principles of Islamic and Sharia’a.

Where did the concept of takaful come from?

The concept of Takaful or Islamic insurance was first introduced in Sudan in 1979, inspired by the growing needs of the Muslim consumers for an insurance protection that conforms to the Islamic law.

Which is the best description of Islamic insurance?

Islamic insurance is a term used for takaful that is a form of insurance based on principles of mutuality and co-operation, encompassing the elements of shared responsibility, joint indemnity, common interest and solidarity.