Takaaful.mw

DEFINITION OF "TAKAAFUL"

1. Origin of Takaaful

"Takaaful" is an Arabic word meaning “guaranteeing each other”. It is a type of Islamic insurance, where members contribute money into a pooling system in order to guarantee each other against loss or damage. Takaaful-branded insurance is based on sharia,Islamic religions law and explains how it is the responsibility of individuals to cooperate and protect each other.

Takaaful, as presented is an Islamic alternative to the conventional insurance practice be it on medical, vehicle life etc. It refers to a fund set up through voluntary contribution (Sadaqat) aimed at guaranteeing each other in an event of a defined loss, damage or suffering experienced by any of the members within a given period of time. Once the insured interest is satisfied, the ownership of the surplus funds is retained by the contributors.

2. Aim

To establish a fund aimed at guaranteeing each other in times of loss, damage or suffering with specific focus on medical welfare.

3. Objective

  • To improve the economic well being of it’s members
  • To encourage and develop the practice of thrift, self help and cooperation among members
  • To promote the social, economic and cultural welfare of it’s members
  • To provide for medical guarantee facility against the unforeseen and expensive predicament of illness to both the rural and urban sections of the society

HISTORICAL BACKGROUND OF TAKAAFUL

4. Background

Takaaful is an Arabic word meaning “guaranteeing each other”. It is a type of Islamic insurance, where members contribute money into a pooling system in order to guarantee each other against loss or damage.Takaaful-branded insurance is based on sharia,Islamic religions law and explains how it is the responsibility of individuals to cooperate and protect each other.

Takaaful draws from the concept of blood money or Al-Aqila, (principal of compensation and group responsibility) endorsed by the Holy Prophet (SWA) and practiced by Muslims of Makka and Madina.

Locally, the concept of guaranteeing each other through cooperation, protection and sharing of responsibilities is evident in the local practice of  ’chijawo’ or  ‘chiperegani’. According to this local practice, which unfortunately has almost died away, villagers could team up to collectively carry out family chores such as farming. With such a practice, each and every family had their gardens ready for the first rains as such hunger could easily be mitigated. In fact this practice was even more helpful to the sick who could otherwise not be able to till their gardens in time. This is the guarantee Takaaful mw wishes to encourage among the contributors.

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Takaaful.mw

 

 

Wed, 3 Nov 2010 @15:35

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