Takaful, an Introduction

Brief Explanation

Takaful means a scheme based on brotherhood, solidarity and mutual assistance which provides for mutual financial aid and assistance to the participants in case of need whereby the participants mutually agree to contribute for that purpose (Takaful Act 1984, article 2), for short it is an Islamic Insurance, which still bring sharia principles within which are the main differences with the conventional insurance. It’s been practiced for about 1400 years, historians believe that Muslim of Mecca and Medina has started a kind of mutual insurance, and it developed again with trade between Arabs and Asians which require a great time and length that increase the risk of robbery and loss.