What is Takaful?
All human activities are subject to risk of loss from unforeseen events. To alleviate this burden to individuals, what we now call insurance has existed since at least 215 BC.
Takaful
is an Arabic word that means “Guaranteeing each other”.
It is
a system of Islamic Insurance based on the principle of TA’AWUN (mutual
assistance) and TABARRU’ (Gift, Give away, donation) where the risk is shared
collectively by the group VOLUNTARILY.
It is a pact among a group of members or participants who agree to jointly
guarantee among themselves against loss or damage to any of them as defined in
the pact.
Takaful should be based on principles of mutuality and co-operation, encompassing the elements of shared responsibility, joint indemnity, common interest and solidarity.
