In Canada, Islamic insurance is defined by a Sharia compliant insurance policy which has the objectives to cover the needs of Muslim Canadian and non-Muslim Canadian against any risk related to their car, home, health or life.
In Canada, Islamic finance or Takaful is due to act as risk coverage for all life areas of the Muslims in Canada by deploying though Canadian Islamic insurers products such as Islamic life insurance, Islamic car insurance, Islamic travel insurance or Islamic home insurance which give a comfort to both, home owners and tenants against any damages.
In Canada, Takaful which means Islamic insurance is an Islamic finance product which often goes along with Canadian Islamic loans particularly halal home financing which often requires a homeowner Takaful covering the borrower’s family in case of payment default which can be due to death or health problems.
Canadian Takaful is currently in place sporadically through Islamic insurance cooperatives combining Islamic finance products such as halal loans and policies covers for properties under the Islamic law.
The Canadian Islamic insurance industry is far away to become soon a real competitor to the established conventional insurance companies, despite the needs of a Muslims community in Canada who is aspiring to be covered on a halal manner.