Takaful Islamic insurance is a concept whereby a group of participants mutually guarantee each other against loss or damage. Each participant fulfils his/her obligation by contributing a certain amount of donation (or tabarru) into a fund, which managed by a third party
Takaful is a Shariah-compliant insurance.
Takaful is a viable alternative to conventional insurance.
The term takaful is an infinitive noun (masdar) which is derived from the root word “kafl”, which means guarantee or responsibility. The chief characteristic of the word takaful is al-musharakah (sharing). Thus, the word takaful means shared responsibility, sharedguarantee, collective assurance and mutual undertakings.