Takaful contracts

Takaful contracts are Islamic insurance agreements where participants contribute money into a shared pool to protect each other against specific risks or losses. Unlike conventional insurance, Takaful operates on principles of mutual cooperation, shared responsibility, and collective benefit, aligning with Islamic values. If a member suffers a loss covered by the Takaful plan, they receive support from the pool. The contributions are managed transparently, with profits and losses shared fairly among members, and investments are made in Sharia-compliant ways. This approach fosters community support while adhering to Islamic ethical standards.