In the modern era of banking and insurance few of the religious scholars have shown their view and declared such policies as against the Islamic principles. For this purpose the introduction of Takaful was being made by the Islamic countries so that every policy and process might be derived according the rules and regulations of Islam. For this respective purpose Takaful is being introduced. The work Takaful is being derived from the Arabic Verb “Kafal” which means to take care of one’s needs. This is a very unique scheme which is very much different from the traditional insurance and banking scheme. In the Takaful scheme the members and the participants who have joined the group with their mutual consent agrees to jointly guarantee themselves against the loss or damage caused by specified perils. Through this process the entire group of the people will support and will assist the effected person from the fund they have created indemnifying his loss and providing the incumbent with the financial assistance.
Takaful Islamic Insurance Concept
Takaful is known as the Islamic Insurance, which is a co-operative system of claim and reimbursement of the loss which is being paid to the people or the companies against the concerned hazards. The members of the takaful group agrees to submit the calculated amount against the policies and when the time of reimbursements occurs the Takaful Company donates the collected amount to effected person or company against their policy. Muslim jurists and scholars have acknowledged the basis and the procedures which are enhancing the shared and mutual responsibility amongst the Muslim Ummah.
The principles of takaful are as follows:
- The policy holders and the people associated in it cooperate with each other within the group for their won common goods.
- The policy holder pays his calculated amount and subscription with the motive of helping other group members who needed support.
- The group in which the person who has faced the problem or any mishap, the loss and the liability is being spread and divided equally amongst the community pooling system.
- Uncertainty is eliminated concerning subscription and compensation.
- The policy and takaful insurance system is also considered to be Islamic and acceptable under the rules and regulations of Islam because to does not derive advantage at the cost of others. No one is being acknowledged and facilitated by giving harm and loss to any other of the individual in the takaful insurance group.