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Takaful is an insurance concept which is grounded in Islamic Muamalat, observing the rules and regulations of Shariah. In fact, this concept has been practised for over 1400 years. |
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Takaful is an insurance concept which
is grounded in Islamic Muamalat, observing the rules
and regulations of Shariah. It is a concept that has
been in practice for over 1,400 years.
In principle, Takaful system is based on mutual cooperation,
responsibility, assurance, protection and assistance
between groups of
participants.
In other words, it is the provision of shared contributions
to help those who are in need.
These fundamentals are based on the sayings of Prophet
Muhammad s.a.w. Some of the examples are:
Basis
of Co-operation
- Allah will always help his servant
for as long as he helps others.
(Narrated by Imam Ahmad and Imam Abu Daud)
Basis of Responsibility
- The place of relationships and feelings
of people with faith,
between each other, is just like the body; when one
of its parts is afflicted with pain, then the rest
of the body will be affected. (Narrated by Imam al-Bukhari
and Imam Muslim). One true Muslim (Mu'min) and another
true Muslim (Mu'min) is just like a building whereby
every part in it strengthens
the other part. (Narrated by Imam al-Bukhari and Imam
Muslim).
Basis of Mutual Protection
- By my life, which is in Allah's power,
nobody will enter Paradise if he does not protect
his neighbour who is in distress. (Narrated by Imam
Ahmad). Based on the above hadith, Islamic scholars
had decided that there should be a concerted effort
to implement the Takaful concept as the best way
to resolve these needs.
Understanding
the Takaful Contract
- Although insurance as a concept is permissable under Shariah law, certain practices in conventional insurance breach Shariah law. The current Takaful Practise uses a combination of two types of contracts ('aqad). These are a contract of Donation (Tabarru") with a condition precedent and a contract of Agency (Wakala) which are free from the elements of usury (Riba), wager or gambling (Maisir) and uncertainty (Gharar). The Takaful system stresses the spirit of co-operation and joint responsibility among participants.
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