Difference Between Insurance And Takaful

Rakaan kayali 16 comments takaful is a relatively new insurance product that is marketed as an islamic alternative to conventional insurance and is often referred to as islamic insurance.

Difference between insurance and takaful. Difference between conventional insurance and takaful. January 15 2016 author. The difference between takaful and conventional life insurance. Further differences are also present in the relationship between the operator under conventional insurance using the term.

If you are looking for insurance plans whether conventional or takaful based do have a gander at our comparison page first to discover the most affordable plans with the best terms. The key difference between takaful and conventional insurance rests in the way the risk is assessed and handled as well as how the takaful fund is managed. Conventional insurance 1 it is a risk transfer mechanism whereby risk is transferred from the policy holder the insured to the insurance company. Premiums and contributions for both conventional and takaful policies can be claimed for tax relief for medical life and child education policies.

Having said that there are major differences in the workings of the two systems stemming from the fact that takaful adheres strictly to the islamic principles it was developed upon. One of key concepts in takaful insurance is that it must adhere to all isl. 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.

Although essentially both takaful and conventional life insurance serves the same purpose of providing coverage there are major differences between the two as can be seen below. The operating guidelines are grounded in islamic muamalat islamic transactions products. Takaful is an alternative insurance solution designed to meet shariah principles. The true difference between takaful and insurance date.

Both takaful and conventional insurance policies work on the same basic system which is the pooling of funds to manage the risk of a group of people. Takaful insurance is a form of co operative insurance in compliance with islamic shariah which is based on the concept of shared contributions and mutual co operation between the participants to compensate one another in case of loss. Takaful pakistan limited takaful pakistan takaful karachi family takaful to spread takaful benefits beyond borders.