What is takaful?
Takaful is a joint guarantee or guaranteeing each
other. It is a system of Islamic Insurance based on
the principle of ta’awun and tabarru’. It is a basic
objective of takaful to pay for a defined loss from a
defined fund. Insurance is allowed in Islam in risk
sharing mechanism; as long as any elements that
contravene Islamic principles are avoided as
sharing the risk with the purpose of helping each
other is recommendable as mentioned in the Al-
Quran. For insurance to be accepted by Islamic
tenets, it must founded on the principles of tabarru’
والعدوان علىاالثم والتعاونوا علىالبروالتقوى وتعاونوا
Artinya: " Dan tolong-menolonglah kamu dalam hal
mengerjakan kebaikan dan takwa, dan janganlah kamu
tolong-menolong dalam hal perbuatan dosa dan
permusuhan." (QS. Al Maidah: 2)
Ta’awun or literally known as
mutual assistance forms the
basic of many Islamic
practices, both social and
economics, includes takaful.
This principle allows
participants to share
their risk and exposure
of risk with the intention
of helping one another
within the Takaful group
which mean that
through this principle,
It is an arrangement whereby a
group of participants each pay
fixed amount of money, and the
compensation for the losses of
participants of the scheme are
paid in lump sum amount.
Help you one another unto
righteousness and pious duty.
Help not one another unto sin
and transgression, but keep
your duty to Allah." — Surah
This is not a contract where of party offers and sell
protection and the other party accepts and buy the
offered at a certain amount. It is an arrangement whereby
a group of participants each pay fixed amount of money,
and the compensation for the losses of participants of the
scheme are paid in lump sum amount.
THE ELEMENT ATTACHED TO THE CONCEPT OF TA’AWUN IN
THE WORLD OF TAKAFUL CAN BE DIVIDED INTO THREE
QURANIC PRINCIPLE VIZ :-
The feeling of responsibility towards one another among
the Muslim is the foundation of Islamic solidarity of
Islamic community, which makes the unfortunate and the
needy feel secured by being sheltered by the rich and the
sick feel not much hurt because they know the healthy
Takaful is based on the agreement among the group of
person share responsibility of loss or damage that may
THE PRINCIPLE OF MUTUAL RESPONSIBILITY WAS ESTABLISHED IN A SEVERAL HADITH,
WHICH STATED AS FOLLOWS:
• “Each one of you has a responsibility and each one of
you is responsible towards those under your
• “One is not judged as righteous until he cares for his
brother as much as he cares for himself." (Bukhari).
• " The relationship between one believer and another (in a
community) is like that of a building where one part of the
building strengthens the other parts." (Mutafaq 'alaihi).
Oxford Advanced Learner’s Dictionary defined
“ The fact of doing something together towards
a shared aim.”
Cooperation- One of the objective of Takaful which
mean also as mutual help among the members of the
This has been stated in Sunnah and Hadith.
By practice, mutual cooperation based on the
perspective of takaful is members of a takaful
company join in contributing as certain sum of money
at their subscriptions to common tool or saving ;
losses are divided and liabilities spread.
. SOME OF THE QURANIC INJUNCTION AND HADITH
STATING THE PRINCIPLE ARE AS FOLLOWING:
"Help one another in furthering virtue and God-
consciousness (taqwa), and do not help one another in
furthering evil and enmity" (Quran 5:2).”
A Muslim is the brother of a fellow Muslim. He
should neither commit oppression upon him nor
ruin him; and he who meets the needs of a brother.
God will meet his needs and he who relieves his
brother from hardship Allah will relieve him from the
hardness to which he could be put on the day of
It is a nature for a human beings requires protection
in order to be able to live in a macro-society level.
. The principle hereby was intended to provide this
necessity of protection.
In takaful,this underlying principle of Ta’awun
means that to provide mutual financial and other
forms of aid to members (of the group) in case of
specific need, whereby members mutually agree to
contribute monies to support his common goal.
This principles are well stipulated by both in the Holy
Qur’an and Hadith of The Prophet Muhammad (PBUH)
say “(He) who has fed them against hunger and made
them safe from fear.” (Quraish:4).
The Prophet (s) said, “Indeed a believer is one who can
give security and protection to the life and property of
mankind.”(Ibne Mazah) The Prophet also said, “ A
person is not believer if he believer if he sleeps
comfortably on a full stomach while his neighbour
suffers from hunger.
CONCEPTS AND GOALS
Takaful has the same goal with conventional insurance
which provides services to the policyholders or
Operators using the concept of cooperation permitted by
Islamic law of contract based tabarru’ and ta'awun.
This concept is independent of any elements that are
contrary to the laws of Islam, such as gharar, gaming,
and other elements.
Takaful fund formed from the contributions of the
participants (policyholders) based on tabarru’ contract
and it will be used to save each participant’s takaful of
accident or calamity.
Any surplus remaining after the payment of
compensation, expenses, and deductions for reserves
will be returned to the participants according to their
Contract of tabarru’ supported by the fact that the takaful
company does not have any absolute installments
contributed by participants.
If there have an excess of the fund is returned to them, or
collected for charity.
HOW TO APPLY THE CONCEPTS
Risk fund is the place where the participant’s collected
donations is placed.
Each participant will assist them when some of them
An application of tabarru in takaful has eliminated the
elements of Gharar, Riba and Maisir.
This is because tabarru' is categorized as a party to the
contract does not require any exchange or reciprocal
Through the implementation of tabarru’ is bound by the
principles of takaful to create an atmosphere of helping
Thus, there is no term 'money at risk' in this situation
as it tries misinterpreted as money donations will be
rewarded nicely by Allah Almighty. Such as the
application of operators, in the absence of a claim for
covered items, donations of tabarru’ serves as a
contribution to charity that is very special place in
Takaful is a distant from commercial or capitalist
form of insurance. It is purely organized along the
notion of solidarity, co-operation and mutual
assiistance which would results in the consideration
of the participants in both the insured and the
insurer to the schemes. Participants in both insuring
bodies are based upon the principle of “bear ye one
another’s burden” which lead to the basic principle
of Islamic insurance, helping to ease each other or
other person burden.