Takaful insurance or Takaful indemnity is a co-operative system of reimbursement which is paid to the people or companies who are concerned about or are affected by hazards, both mental and physical. Basically, Takaful indemnity is an insurance plan or an insurance structure which is in accordance to all of the financial and insurance-related laws included in the Sharia, the set of rules which every Muslim must follow at all costs. In a Takaful indemnity plan, a person pays a regular insurance premium, most of which goes into a shared or mutual fund (which is known as a “pool).
When a person or company suffers a loss and is to be compensated, the compensation comes from the pool. All of the policyholders of a Takaful indemnity agree to pay small contributions to the pool when they initially purchase the Takaful indemnity policy. The pool and the contributions are managed by an individual who is referred to as the “Takaful Operator”.
The concept of Takaful indemnity has been designed exclusively for Muslims and has been designed on the basis of co-operation and brotherhood. In addition, most of the rules and regulations of Takaful indemnities have been adopted from the Holy Quran. The concept of Takaful insurance dates back to the era of the Holy Prophet (PBUH), namely the event of the migration to Madina where the Muslims of Madina and the immigrants laid the foundation of the concept of the Takaful indemnity. The Muslims of Madina lived together with the Muslims of Makkah and formed one community. Whenever a Muslim of Madina or an immigrant suffered a loss, all of the other members of the community would reimburse them for their loss.
How to buy a Takaful insurance indemnity plan?
Many people wonder exactly how they can purchase a Takaful indemnity plan. Well, the following are the steps which a person must complete in order to successfully purchase a Takaful insurance plan:
Step 1: Choose a Takaful operator
In order to purchase a Takaful indemnity plan, the first step which a person must complete is to choose a Takaful operator. A Takaful operator is a person who manages a Takaful indemnity program. Many Takaful operators manage many different Takaful indemnity programs, which is why a person needs to decide which Takaful operator they will be purchasing a Takaful indemnity plan from.
Step 2: Go through with all the rules and regulations
Next, a person needs to meet with the Takaful operator they have chosen so that they can go through with all the rules, regulations and policies of the Takaful indemnity program.
Step 3: Take all the necessary vows
Before a person purchases a Takaful indemnity plan, they need to take a number of different vows in order to prove their sincerity to the Takaful indemnity program and in order to prove that they agree to all of the terms, policies, rules, regulations and conditions of the program.
Step 4: Purchase the plan
Once a person has taken all of the necessary vows and has agreed abide by the rules and policies of the Takaful indemnity program, all they need to do is to purchase their very own Takaful insurance plan.
What are your thoughts regarding the concept of Takaful indemnity or insurance?