The Takaful Agreement

The Takaful Agreement is a cooperative insurance model based on Islamic principles. Participants contribute money to a shared fund, which is used to provide financial support in case of loss or damage. Unlike conventional insurance, which involves profit motive, Takaful operates on mutual aid and risk-sharing among members. If a participant suffers a loss, they receive compensation from the fund, ensuring that the system is equitable and ethical. The agreement is rooted in the concepts of solidarity, cooperation, and social responsibility, aligning with Islamic teachings against uncertainty and exploitation.