Faiz Afkham

Understanding Takaful and Conventional Insurance Both Takaful and conventional insurance provide financial protection against risks, but their principles, operations, and objectives differ significantly. While conventional insurance focuses on profit and risk transfer, Takaful emphasizes mutual assistance, ethical practices, and risk sharing. Key Differences Between Takaful and Conventional Insurance Aspect Takaful Conventional Insurance Foundation Based on Sharī’ah principles of mutual guarantee and shared responsibility Operates on a profit-driven risk transfer mechanism Ownership of Funds Participants collectively own the fund Fund owned and managed by the insurance company Prohibited Elements Free from Ribā (interest), Gharār (uncertainty), and Maysir (gambling) May involve interest and speculative practices Risk Management Risk is shared among participants Risk is transferred to the insurance provider Profit Distribution Surpluses are shared a...

Why Choose Takaful? As a system rooted in ethical principles and communal values, Takaful offers a compelling alternative to conventional insurance. Its unique structure and adherence to Islamic law make it attractive not just for Muslims but also for anyone seeking transparent and socially responsible financial products. Key Differences Between Takaful and Conventional Insurance Aspect Takaful Conventional Insurance Philosophy Based on mutual cooperation and shared responsibility Profit-driven, with risk transferred to the insurer Ownership of Fund Participants collectively own the fund Fund owned by the insurance company Risk Management Risks are shared among participants Risks are transferred to the insurer Prohibited Elements Free from Ribā , Gharār , and Maysir May involve interest, speculation, or ambiguity Profit Distribution Surpluses shared among participants Profits belong to the insurance company Benefits of Takaful Over Conventional ...