What is Takaful?
“Takaful” is an Arabic word which means “joint guarantee”. It is a community-pooling system, based on the principles of brotherhood and mutual cooperation, where participants contribute in a common fund to help those who need it the most.
The system runs on these principles:
- Participants pool a small amount called “Contribution” into a Waqf Fund, on the basis of “Tabarru”, to protect themselves and each other against specified risks
- The Window Takaful Operator manages a Waqf Fund, called Individual Family Takaful Participants’ Fund (IFTPF), with due diligence and prudence in the capacity of “Wakeel”
- The claims are paid from the IFTPF
- Surplus amount, if any, may be distributed among the participants as per the advice of Shariah Advisor and Appointed Actuary of the Company
