Takaful
Sign in to saveTakaful (, 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).
~17 min read
Article
15 sectionsContents
- Principles
- Fiqh scholars
- Argument against conventional insurance
- Defense of conventional insurance
- Scriptural basis
- History & models
- Modern era
- Models
- The ''Mudharabah'' model (profit-sharing)
- Criticism
- References
- Notes
- Citations
- Books, documents, journal articles
- Sources
Takaful (, 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).
Under takaful, people and companies concerned about hazards make regular contributions ("donations") to be reimbursed or repaid to members in the event of loss, and managed on their behalf by a takaful operator. Like other Islamic finance products, Takaful is grounded in Islamic Muamalat (commercial and civil acts or dealings branch of Islamic law).