Takaful Act 1984

The Takaful Act 1984 is Malaysian legislation that provides a legal framework for Takaful, an Islamic Insurance system based on mutual cooperation and shared responsibility. Unlike conventional insurance, Takaful operates on Islamic principles like fairness, risk-sharing, and avoidance of forbidden (haram) activities. The Act sets out rules for establishing Takaful operators, governance standards, policyholder rights, and regulatory oversight to ensure the industry functions transparently and ethically in accordance with Islamic law.