How Takaful Works
- Policyholders pool in money for uncertain events
- A Waqeel or takaful fund manager accumlates and manges the fund with a fees
- Fund is invested in Sukuks,Property and Shariah Compiant companies
- Fund is invested in Sukuks,Property and Shariah Compiant companies
- Policy Holders get a claim in case of unforeseen events like accident and emergencies
What is Takaful?
Takaful comes from Arabic root word ‘Kafala’ which means to guarantee, to help, to take care of each other’s needs. Takaful refers to mutual protection and joint guarantee. It adheres strictly to the Islamic principles it was built upon. According to the Shariah law, The Takaful ( mutual help ) contracts are based on Tabarru’ it is an Arabic word which means donation or gifts and this contract of Tabarru’ is introduced as the basis of takaful system and Ta'awun (mutual assistance), whereby all participants who join the takaful plan agree to mutual assistance, and guarantee them, should disasters or accidents occur.
As Islam encourages the spirit of helping and loving each other, the practice of alms or tabarru’ has a high value in Islam as it is the basic to develop a harmonious and prosperous society. Tabarru' means a form of sincere donation given to a party without expecting any kind of exchange or return from the party. It is considered as a unilateral contract which only requires one party to express the contribution without requiring any kind of exchange.
In takaful, the participants will allocate certain or whole amount of his contribution into a fund. The fund is named as the Risk Fund to gather the collected tabarru’ made by participants. Read more >>
Faqs
How is it ensured that all the activities of Takaful companies are Shariah compliant?
All Takaful organizations and Window Takaful Operators are governed via the SECP’s Takaful policies, 2012 that require the Takaful operators to induct a “Shariah guide” who's a Shariah pupil of fame. Moreover, all Takaful businesses/operators must go through an external “Shariah audit” as well, further to the normal accounting audit, in every accounting length
How will I get a claim from a Takaful company?
All procedures, such as claims, are the same as in traditional insurance organizations. The distinction lies within the nature of the agreement, not within the processes.
Still Any Questions ?
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