The word · Law & life

تَكافُل

Takaful

Cooperative insurance, built on mutual donation, offered as an alternative to conventional policies.

Also written · Takafol · Takafful · Tekaful · Takaful insurance · Tabarru · Ta'awun · Islamic insurance · cooperative insurance · mutual insurance · halal insurance

The meaning

What Takaful means in Islam

Participants contribute to a shared fund on the basis of tabarru', donation, and the fund pays claims, while an operator manages it for a fee or an agreed share. It was designed to answer the objections scholars raise against conventional insurance, namely gharar, resemblance to gambling, and interest bearing reserves. Not every scholar accepts that the difference is substantive, and some hold conventional insurance permissible under necessity where no alternative is available.

Evidence · Editorial · Our own summary, drawn from the sources named