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Takaful Islamic Insurance


 

What is Takaful?
Prohibitions of Gharar, Maysir and Riba
Gambling and Insurance
Basis and Principles of Takaful
Status of Takaful
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Basis and Principles of Takaful



Islamic insurance requires each participant to contribute into a fund that is used to support one another with each participant contributing sufficient amounts to cover expected claims.

The underlying principles of Takaful may be summarised as follows:
  • Policyholders co-operate among themselves for their common good.
  • Every policyholder pays a part of the contribution as a donation 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 seek to derive advantage at the cost of others.
Theoretically, Takaful is perceived as cooperative insurance, where members contribute a certain sum of money to a common pool. The purpose of this system is not profits but to uphold the principle of "bear ye one another's burden."





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