Takaful is a system of insurance based on the Islamic principles of mutual assistance (ta’awun) and donation (tabarru). Takaful means joint guarantee, whereby a group of participants contribute towards a pool of money and mutually agree to protect each other by compensating those participants who suffer from an insured peril.
Takaful | Conventional Insurance | |
Organisation principles | Based on mutual cooperation | Commercial relationship between insurance company and insured. |
Basis | Co-operative risk-sharing | Risk transfer |
Contract form | Combination of donation and profit-sharing contract | Exchange contract |
Laws | Shari’ah laws and Government/local laws | Government/local laws |
Ownership | Participants | Shareholders |
Capital used | Participants’ fund; in case of shortfall access to shareholders’ equity on a qard hasan basis | Share capital |
Management | Operator | Company management |
Investment | Shari’ah compliant | No restrictions except prudential |
Surplus | Participants’ account | Shareholders’ account |
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For many years, the FISO Company has been serving policyholders – protecting businesses, mitigating losses, defending claims. Renters .
