Sharia-compliant insurance

Sharia-compliant insurance, also known as Takaful, is designed to adhere to Islamic principles. Unlike conventional insurance that involves interest (riba) and uncertainty (gharar), Takaful operates on the concept of mutual cooperation and shared responsibility. Participants contribute to a pooled fund, and claims are paid out from this collective effort, emphasizing fairness and social solidarity. The funds are invested in Sharia-compliant assets, avoiding prohibited industries like alcohol or gambling. Takaful offers a solution that provides financial protection while aligning with Islamic values and ethical standards.