Islamic concept of

insurance under
takaful scheme
 The concept of Islamic insurance
under takaful
Al-Mudharabah Al-Wakalah

It is the type of partnership for profit which It is the process whereby a person
is structured so that one partner provide empower another person to perform
capital and the other provide labor and some task or act on behalf on him
expertise
DIFFERENCES BETWEEN TAKAFUL
AND CONVENTIONAL INSURANCE
TAKAFUL
Takaful is based on mutual
cooperation
Free from interest (riba), gambling
(maisir) and uncertainty (gharar)
Subject to the governing law as
well as a Sharia Supervisory Board
Profit will be shared among
operator and participant on
Mudharabah basis or Performance
Investment Fee
CONVENTIONAL INSURANCE
Conventional insurance is based
solely on commercial factors
Abundant with riba, gharar, and
maisir
It is only subject to the governing
laws
Interest practice and policyholder
pays premium to the insurer
 THE ARGUMENT AGAINST
CONVENTIONAL INSURANCE
RIBA MAISIR GHARAR
Riba is refers to Maisir refers to Definition of gharar. An
charged interest. gambling. Arabic word meaning risk,

The intention of uncertainty, or hazard.

It is forbidden under
Sharia, Islamic making an easy profit. Financial products where
religious law, because Extended to such details concerning the
it is thought to be financial practices as conditions of sale are
exploitive. speculation and unknown or uncertain are
insurance generally prohibited
under Islamic law.
Examples of Islamic Insurance
Companies in Malaysia
eTiQa formerly known as Takaful Nasional
Berhad

Syarikat Takaful Malaysia Berhad

Takaful Ikhlas Sdn Bhd

Example product from Takaful
Ikhlas Sdn Bhd
IKHLASlink Critical Illness Secure Takaful Rider

Provide protection against financial loss affected by

any of critical illness
The fees and charges that have to pay
-wakalah fees is not applicable
-tabarru charge is deducted from Unit Fund of the
Basic Takaful Certificate
-GST will be charged on the tabbaru