A COOPERATIVE APPROACH TO PROTECTION, ROOTED IN SHARI'A PRINCIPLES
Takaful is Islamic insurance in which participants contribute to a Takaful fund as donations, forming an agreement to mutually cooperate in the event of risks or losses such as death, permanent disability, damage, or other misfortunes. It operates on the principles of cooperation and maintains a clear separation between shareholder funds and participant funds. Contributions from participants form the Takaful fund, from which claims are paid, and at the end of each financial year, any surplus, after expenses, may be distributed to participants as cash dividends or returned to the fund. The Wakala (agency) model is used to issue and manage Takaful policies, while the Mudaraba (joint venture) model manages investments. The Takaful framework avoids elements of Riba (interest) and Gharar (uncertainty) to comply with Shari’a principles. In the event of a deficit in the Takaful fund, shareholders may provide a Qard Hasan (interest-free loan) to cover it.
Internal Sharia Supervision Committee
Dr. Moosa Khoory
Chairman of the ISSC & Executive MemberDirector of Economic Development at the Executive Council of Dubai Government, member of many Sharia Boards and Committees, and holder of a PhD in Islamic Finance from the University of Durham.
Dr. Ashraf Hashim
Deputy Chairman of the ISSCProfessor at the International Centre of Education in Islamic Finance (INCEIF). He currently serves as the Chairman of the Central Bank of Malaysia’s Shariah Advisory Council (SAC BNM) and a member of the Shariah Advisory Council Securities Commission of Malaysia (SAC SC).
Dr. Abdulsalam Kilani
MemberHead of Sharia Department at a leading Islamic Bank and holder of a PhD in Transactional Jurisprudence from Scandinavia University, Norway.
