Islamic insurance principles

Islamic insurance, or Takaful, operates on principles of mutual cooperation, shared responsibility, and ethical fairness. Participants contribute to a shared pool of funds, which is used collectively to support members facing loss or risk. Unlike conventional insurance, Takaful avoids interest (riba) and gambling (maysir), emphasizing charity (tabarru) and ethical investment. Profits are shared among participants or directed to charitable causes. This system aligns with Islamic values by promoting solidarity, justice, and social welfare, ensuring risk is managed collectively while adhering to Shariah law.