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Takaful: Concept, Principles, Types, and Models

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Implementing Takaful in India

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Abstract

Takaful is social and ethical insurance based on the principle of Taʿawun (cooperation) and Tabarru, where the risk is shared collectively by members of a policy. The concept of Takaful is providing financial assistance to the participants based on mutual aid, brotherhood, and solidarity if the participants face misfortune.

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Notes

  1. 1.

    Article 3 of the constitution of Madina. It deals with the payment of blood money relying, on the doctrine of Aqilah; See Hamidullah, op.cit., at Arts. 4-12a, at 42ff.

  2. 2.

    See Hamidullah, The First Written Constitution in the World, op.cit. Art 3, p.55.

  3. 3.

    Articles 4-20a of the Constitution of Madinah. Islam da DevletButcesi, pp 382–83 as cited by Vardit, op.cit., at f.n. 84, p.28.

  4. 4.

    “It covers against the loss or damage to vehicle due to accidental fire, theft or accident and or third party bodily injury or death, third party property or loss” (www.insuranceinfo.com.my/_system/media//motortakaful.pdf downloaded on 21st February 2014).

  5. 5.

    “It provides comprehensive protection for both residential and commercial properties (including the structure) against several perils" (http://www.takaful-ikhlas.com.my/generaltakaful/fire.asp downloaded on 21st February 2014).

  6. 6.

    It protects the participants from any financial loss due to perils insured against (http://www.ritajins.com/custompages.aspx?pid=26 downloaded on 21st February 2014).

  7. 7.

    It covers damage related to the construction such as construction plant and equipment and machinery and also it's surrounding (http://www.watania.ae/en/products/general-takaful/engineering.Aspx downloaded on 21st February 2014).

  8. 8.

    http://www.insuranceinfo.com.my/choose_your_takaful/protect_your_family/family_takaful.php?intPrefLangID=1&

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Authors and Affiliations

  1. Faculty of Business and Accountancy, Lincoln University College, Petaling Jaya, Selangor, Malaysia

    Syed Ahmed Salman

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Salman, S.A. (2021). Takaful: Concept, Principles, Types, and Models. In: Implementing Takaful in India. Springer, Singapore. https://doi.org/10.1007/978-981-16-6281-2_3

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