Key Differences in Takaful and Conventional Insurance


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Originally published at: https://www.mawazna.com/blog/key-differences-in-takaful-and-conventional-insurance/

Takaful is another name of Islamic Insurance that allows the premiums received from insured to be pooled into a fund to support each other in case someone gets any damage. In Arabic, Takaful means “guaranteeing each other” and so, Takaful Insurance is an Islamic Insurance theory that is compliant with Islamic law (sharia) and is a mutual risk transfer arrangement which involves operators and participants.

 

The main different between conventional insurance and Takaful is the way in which the risk is handled and assessed along with the management of the Takaful fund. Other differences are the relationship between the operators and the participants.

Takaful does not permit uncertainity or gambling when it comes to risk assessment and handling and speculating respectively. Fund management through interest or Riba or investment is also not permitted in Takaful and these three reasons are why conventional insurance goes against the principles of Sharia.

 

Takaful Products
Takaful Insurance takes a number of forms such as:
  1. Family Takaful
  2. Motor Takaful
  3. Health Takaful
  4. Medical Takaful
  5. Life Takaful
  6. Investment Takaful
  7. Child Education Takaful
  8. Home Takaful
  9. Travel Takaful including travel to Hajj and Umrah
 
Takaful Providers in Pakistan
In Pakistan, there are a number of Takaful insurance providers list below who are providing a number Takaful products to the masses in Pakistan:

 

  • Jubilee Family Takaful

  • EFU Familty Takaful (EFU Hemayah Takaful)

  • IGI Takaful

  • Adamjee

  • Pak-Qatar General Takaful

  • Pak Kuwait Takaful

  • Takaful Pakistan

  • Dawood Family Takaful

 

Takaful vs Conventional Insurance
So, what is the difference between conventional Insurance and Takaful?

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As you are now aware of the differences, it is important that you use Mawazna.com to review and compare the different Takaful products that are offered by leading providers in Pakistan. In doing so, you will find that you have the required information that will enable you to make an informed decision and saving your valuable money and time.

 

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