Mastering Islamic Finance

8

Takaful – Islamic insurance

Introduction

Sharia perspective on conventional insurance

Takaful – the Islamic alternative

Takaful models

Types of takaful policy

The future of the takaful industry

Conclusion

INTRODUCTION

Human beings have long recognised the need to protect themselves against the impact of risks they face, such as natural disasters, travel accidents, unemployment, sickness or dying at a young age and leaving a vulnerable young family behind.

Islam teaches its followers to put their trust in God; at the same time, it also encourages them to use the resources, skills and abilities bestowed on them by God to act responsibly and protect their wealth and property.

In this chapter we will look at the reasons why conventional ...