TAKAFUL THE ISLAMIC INSURANCE. Conventional Insurance. It means a way to provide security / and compensation of what is valuable in the event of its loss, damage or destruction based on the principle of risk taking and speculation. . Problems with Conventional Insurance.
1. Gharar ( uncertainty )
Literally Gharar means: Uncertainty; cheating; (Jahalah) ambiguity.
There are two types of Gharar:
2. Khatar: ( Risk)
Taleequl milki al alkhatr, wal mal fil janibain:
To stipulate ownership (of any amount) on a risk, where both consideration is money or commodity
2. Mayser ( Qimar or Gambling )
Mayser means Qimar in Arabic language.
Mayser has two basic elements which cause to prohibit Mayser namely:
1. Gharar (2) Khatar
Having the above two elements speculation, gambling and insurance is prohibited.
The participant contributes a small amount of premium in a hop/risk to gain a large sum is Khatar.
The development of takaful in the Asia-Pacific region have thus far evolved a three phase cycle:
1.The principle of “fortunate many helping the unfortunate few" is a concept recognized by Islam.
2.The Quran states in Surah Al-Maidah verse # 2:
"Help ye one another in righteousness and piety, but help ye not one another in sin and rancor".
3. Principles of Muwalat, Maaqil, and Kafalah are examples for its permissibility.
Takaful can be used to cover