Islamic insurance

Islamic insurance, known as Takaful, is a cooperative system where participants contribute to a shared fund to protect each other against unforeseen risks. Unlike conventional insurance, Takaful operates on the principles of mutual assistance and ethical investment, prohibiting practices deemed harmful or exploitative, such as gambling (Gharar) and interest (Riba). In Takaful, if a member suffers a loss, funds from the collective pool are used to compensate them. This system emphasizes community support and shared responsibility, aligning financial practices with Islamic values while providing security and peace of mind to participants.