What type of Islamic insurance system is based on mutual assistance and risk sharing, operating on the principle of tabarru’ (donation) where participants donate a part of their contributions to a common fund to guarantee each other against loss or ...Read more
What type of Islamic insurance system is based on mutual assistance and risk sharing, operating on the principle of tabarru’ (donation) where participants donate a part of their contributions to a common fund to guarantee each other against loss or damage?
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Takaful insurance is a type of Islamic insurance based on the principles of mutual cooperation and shared responsibility. It functions by pooling the contributions of participants into a fund that is used to provide coverage and compensation for any unfortunate events. In case of a loss or damage, tRead more
Takaful insurance is a type of Islamic insurance based on the principles of mutual cooperation and shared responsibility. It functions by pooling the contributions of participants into a fund that is used to provide coverage and compensation for any unfortunate events. In case of a loss or damage, the participants are entitled to receive payment from the common pool. Any surplus remaining after all claims and expenses have been settled will be distributed among the participants or used for charitable purposes. Takaful insurance operates in compliance with Shariah principles, ensuring that investments are made ethically and in accordance with Islamic law.
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