Takaful, which means mutual guarantee,
comes from the Arabic word - kafala. The concept of takaful aims to promote
mutual aid and unity among participants in line with the concept of ta'awun. In
Islam, helping or providing assistance is strongly encouraged.
In takaful business, understanding from
this point is an important agenda. It is applied to all participants who take
takaful protection for the sincere intentions of mutual guaranteeing them
during the disaster. In general, the objectives in the takaful industry
actually have similarities with the conventional insurance industry. Both are
instruments to help the unfortunate because of the misfortune. Clearly, both of
these instruments are a modern way of transferring the risks that are occurring
and become customary, a reward will be given to those who are willing to accept
this risk transfer.
source: wikipedia
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