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:
1) 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
2) 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”
3) The claims are paid from the IFTPF
4) Surplus amount,if any, may be distributed among the participants as per the advice of Shariah Advisor and Appointed Actuary of the Company