Publication:
Takaful (Islamic insurance), retakaful, and microtakaful
Abstract
Takaful, or mutual assistance, is the Islamic counterpart of conventional insurance. The word takaful is derived from an Arabic word kafalah, which means to guarantee. A group of participants agree to support one another jointly for the losses arising from specified risks. They contribute to a fund, and are compensated or reimbursed from that fund in the event of certain risks. The scheme is managed on the participants' behalf by a takaful operator. It is similar to a mutual insurance concept, but it complies with Shariah and is based on concepts of mutual solidarity and risk sharing.
Keywords
Takaful , Retakaful , Insurance , Microtakaful , islamic finance
Citation
Ismail, Ezamshah and World Bank. (2016). Takaful (Islamic insurance), retakaful, and microtakaful. In The World Bank, Islamic finance: a catalyst for shared prosperity? (pp. 103-117). Washington, D. C.: World Bank Group.
Publisher
World Bank Group
Available in physical copy and downloadable format (Call Number: HG 3368 A6 I82Wo)