Takaful (Islamic insurance)

Takaful is a form of Islamic insurance that operates on the principles of mutual assistance and shared responsibility. Unlike conventional insurance, which involves profit-making and risk transfer, Takaful participants contribute to a pooled fund. This fund is used to help members facing loss or damage, such as accidents or health issues. Participants agree to support one another, adhering to Islamic guidelines that prohibit gambling and uncertainty. The system reflects community solidarity and ethical investment, where any surplus from the fund can be redistributed among participants or donated for charitable purposes.