Takaful (Islamic Insurance)
A cooperative system of mutual guarantee and risk pooling adhering strictly to Shariah principles.
Detailed Definition
Takaful is an Islamic alternative to conventional commercial insurance. Participants contribute donations (Tabarru) into a shared collective pool. Claims are paid from this pool to assist members suffering losses, avoiding riba (usury), maysir (gambling), and gharar (excessive ambiguity).
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Related in Islamic Finance
Mudarabah (Trustee Financing)
A partnership where one party provides 100% of the capital while the other provides managerial expertise.
Ijarah (Islamic Leasing)
A Shariah-compliant leasing agreement where the bank purchases an asset and leases its usufruct to the client.
Musharakah (Partnership Financing)
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