ISLAMIC INSURANCE (TAKAFUL) 2024
HALAL INSURANCE SHARIA COMPLIANT TAKAFUL RE-TAKAFUL
An Islamic insurance (Takaful) in 2024, is by definition a halal financial protection, commonly referred to as Takaful, made through a cooperative system of reimbursement or compensation based on principles of mutual assistance, it offers a solution for risk management that avoids elements prohibited in Islam, such as riba (interest) and gharar (excessive uncertainty).
The Islamic insurance, or Takaful, serves the Islamic community also in the USA and UK by providing a Shariah-compliant alternative to conventional insurance, ensuring that they can manage risks and uncertainties without compromising their religious principles.
Takaful principle based on participants contribute funds to a shared pool, which is then used to support members facing specified losses as the primary objective of an Islamic insurance is to provide a system where individuals can collectively pool resources to help those in need, encapsulating the spirit of mutual assistance and community support.
The islamic insurance (Takaful) in 2024, unlike conventional insurance where the company's primary objective is profit for its shareholders, Takaful operates on a foundation of shared responsibility and community welfare and the emphasis is on collective assurance, mutual protection, and investment in assets that comply with Islamic principles.
The Halal insurance is a financial protection design combining cooperation, protection and reciprocal assistance between groups that would participate in an investment and is primarily a form of mutual insurance that conforms to Sharia law.
WHAT IS THE DIFFERENCE BETWEEN ISLAMIC INSURANCE AND CONVENTIONAL INSURANCE IN 2024?
Comparison between Islamic Insurance (Takaful) and Conventional Insurance
| Aspect | Islamic Insurance (Takaful) | Conventional Insurance |
|---|---|---|
| Foundation | Based on principles of mutual cooperation and solidarity. | Based on risk transfer for a premium. |
| Prohibited Elements | Avoids riba (interest), gharar (excessive uncertainty), and haram (forbidden) investments. | No such religious prohibitions, allowing for interest-based investments and unclear contract terms. |
| Profit & Loss Sharing | Both profit and loss are shared among the participants and the Takaful operator. | The insurance company takes the entire profit, while policyholders bear no investment risk. |
| Investments | Funds are invested in Shariah-compliant, ethical ventures. | Funds can be invested in any profitable venture, irrespective of ethical or religious considerations. |
| Surplus Distribution | Any surplus from the Takaful fund is returned to the participants. | Surpluses are retained by the insurance company for the benefit of shareholders. |
| Contract Type | Contracts are based on Tabarru’ (donation) or Mudarabah (profit-sharing). | Contracts are commercial agreements based on buying security for a premium. |
| Objective | Emphasis on mutual assistance and community welfare. | Primary emphasis on profit for shareholders. |
TYPES OF ISLAMIC INSURANCE
Halal insurance offers financial coverage on the basis of solidarity in all areas of daily life for the individual, his family or the company. Islamic insurance takes the following forms:
Types of Shariah-Compliant Insurances (Takaful)
- Family Takaful: Equivalent to life insurance in conventional systems, it provides financial security to family members in the event of the contributor's demise or disability.
- Health Takaful: Provides coverage for medical expenses. Beneficiaries can claim for hospitalization, surgeries, and other medical services.
- Motor Takaful: Similar to car insurance, it covers damages to the vehicle, third-party liabilities, and injuries due to accidents.
- Property Takaful: Offers coverage against damages to properties due to incidents like fires, thefts, or natural calamities.
- Travel Takaful: Provides coverage against travel-related risks like flight cancellations, loss of baggage, or medical emergencies while traveling.
- Marine Takaful: Insures goods, cargo, and other interests against maritime risks during transport.
- Education Takaful: A savings plan to fund future educational needs, ensuring continued education in case the contributor passes away or faces disability.
- General Takaful: A broad category covering various non-life insurance needs, including liabilities, machinery breakdowns, and more.
- Retirement Takaful: Similar to pension plans, it allows contributors to save for their retirement while ensuring their families have financial support if the contributor passes away before retirement.
- Agricultural Takaful: Provides coverage against agricultural risks like crop failures, livestock losses, etc.
WHAT IS RETAKAFUL ?
Retakaful is a way for any takaful insurer to reduces its risk of reimbursing large islamic insurance claims by insuring a party of its risk with another Takaful company. Retakaful is not different as resinsurance which is also applied within the conventioanl insurance industry.
ISLAMIC INSURER BY COUNTRY AND PRODUCTS
HALAL MORTGAGE TAKAFUL INSURANCE STUDENT INSURANCE CAR INSURANCE ICELAND HOME INSURANCE REAL ESTATE INSURANCE LIFE INSURANCE BUSINESS INSURANCE TRAVEL INSURANCE HAJJ UMRAH INSURANCE FUNERAL INSURANCE MOSQUE INSURANCE AUSTRALIA INSURANCE GERMANY INSURANCE ISLAMIC CAR LOAN ISLAMIC MICROFINANCE WITHOUT INTEREST BUSINESS LOAN FOR WOMEN TAKAFUL MORTGAGE LOAN WITH POOR CREDIT ISLAMIC DEBT CONSOLIDATION DISABILITY LOAN STUDENT LOAN ISLAMIC LEASING LETTER OF CREDIT PERSONAL LOAN FOR STARTUP PRIVATE LOAN CROWDFUNDING CALCULATOR FOR WEDDING FOR EXPATRIATE ISLAMIC INSURANCE INDIA TAKAFUL ISLAMIC HEALTH INSURANCE USA TAKAFUL CANADA TAKAFUL UK TAKAFUL FARMER LOAN TAXI LOAN RAMADAN LOAN LIST OF ISLAMIC BANKS ALBANIA ALGERIA AUSTRALIA ISLAMIC COLLEGE SCHOLARSHIP BAHRAIN BANGLADESH BOSNIA-HERZEGOVINA BRUNEI CANADA CHINA DENMARK DJIBOUTI EGYPT ETHIOPA FRANCE INDONESIA IRAN IRAQ IVORY COAST JORDAN KAZAKHSTAN KENYA KUWAIT KYRGYZSTAN LEBANON LIBYA LUXEMBOURG MALAYSIA MALI MAURITANIA MOROCCO NETHERLANDS NIGERIA NORWAY FINLAND ISRAEL HONG-KONG GHANA RWANDA GAMBIA SIERRA-LEONE SOMALIA MYANMAR ANGOLA MAURITIUS OMAN PAKISTAN PALESTINE PHILIPPINES QATAR RUSSIA SAUDI-ARABIA SENEGAL SINGAPORE SRI-LANKA SUDAN SWITZERLAND SYRIA TAJIKISTAN TANZANIA CYPRUS JAPAN ARGENTINA BRAZIL AUSTRIA SOUTH KOREA MALDIVES WAKALAH WADIAH AMANAH SUKUK ISLAMIC CREDIT CARD WAAD ISLAMIC HEDGING MUSAWAMA MURABAHA QARD-UL-HASAN BAI-SALAM ISTISNA MUDARABAH IJARA IJARAH-THUMMA-AL-BA IJARAH-WA-IQTINA IJARA-MAWSOOFA-BI-AL-DHIMMA TAWARRUQ MUSHARAKA BAI-MUAJJAL-BAI-BITHAMAN-AJIL BAI AL INAH HAWALA KAFALAS RAHN THAILAND TUNISIA TURKEY U.A.E UNITED-KINGDOM U.S.A UZBEKISTAN YEMEN AZERBAIJAN INDIA BELGIUM GERMANY IRELAND ITALY NEW-ZEALAND SPAIN SWEDEN BULGARIA KOSOVO SOUTH-AFRICA LONDON