Takaful is the Association that provides Islamic insurance to fulfill the insurance requirement from an Islamic perspective.

Takaful is an Arabic word meaning “guaranteeing each other” or “joint guarantee”. The Tabarru’ system is the main core of the takaful system making it free from uncertainty and gambling. Tabarru’ means “donation; gift; contribution.” Each participant that needs protection must be present with the sincere intention to donate to other participants faced with difficulties. Therefore, Islamic insurance exists where each participant contributes into a fund that is used to support one another with each participant contributing sufficient amounts to cover expected claims.

Objective of Takaful

The objective of takaful is to pay a defined loss from a defined fund. Muslim jurists conclude that insurance in Islam should be based on principles of mutuality and cooperation.

Encompassing the elements of shared responsibility, joint indemnity, common interest, and solidarity. Theoretically, Takaful is perceived as cooperative insurance, where members contribute a certain sum to a common pool. The purpose of this system is not to profit but to uphold the principle of “bear ye one another’s burden.

Everyone needs insurance, whether you own or rent a home, or vehicle or for any medical needs. Takaful is the only product currently in the market which meets the Muslim's needs of faith-based insurance. It is popular and commercially used in many countries worldwide, such as USA, Canada, UK, Australia, UAE, Bahrain, Qatar, Egypt, Bangladesh, Syria, Saudi Arabia, Brunei, Gambia, Indonesia, Iran, Iraq, Jordan, Kenya, Kuwait, Lebanon, Malaysia, Mauritania, Pakistan, Palestine, Bahamas, Senegal, Sri Lanka, Sudan, Thailand, Tunisia, Trinidad, Tobago, and Yemen.

Does Takaful give you what you need for Shariah compliance? It may not be 100% but still far better than conventional insurance, which has riba or interest portion.

The main difference between conventional and Takaful is that it is a mutual agreement rather than a business relationship based on cooperation and helping each other in need.

Takaful is an ideal choice for individual Muslims needing Home and Auto insurance and Muslim religious association building, including mosques and other similar premises.

Like any other insurance provider, Takaful can grow based on the number of members signing up, as one of the limitations in Canada for Takaful is lacking the number of members. So contributing towards Takaful is by signing up with Takaful.

Takaful has strong partnerships with reputed insurance providers, which have well-established credentials for many years worldwide, so, it is not that you are signing up which has no bases.

The premium of the Takaful operator is very close to or less than the conventional insurance company. The only extra investment you make is to become a member with Takaful Operator, and to do so; you will have to buy one time less than a $1000 share approx. that is refundable upon canceling membership. However, you may lose a non-refundable fee, typically $100, in case if would like to switch back to other insurance in the future. The entire procedure may take approximately 4 to 6 weeks to receive membership.

Signing up with Takaful in Canada

The procedure may differ from one Takaful operator to another. In general, it can be briefly explained below.

1. Contact the Takaful operators in your country and find out who is an insurance provider on their behalf. (For example, in Canada, the “Ansar Cooperative Housing Corporation Ltd @ http://www.ansarhousing.com/” is the Takaful operator, and “The Co-operators Group Insurance” is the insurance provider on behalf of Takaful).

2. Before signing up, obtain the quote from the Takaful insurance provider in check to fit your budget. While talking to the Takaful insurance provider, ask for a discounted rate for Takaful members. Usually, their premium closely aligns with other Insurance provider premiums.

3. Once you have obtained the quote and decided to switch, contact the Takaful operator, for example, in Canada, “Ansar Cooperative Housing Corporation Ltd,” and fill out the form to obtain membership. You may have to buy a few minimum shares (approximately less than $1000 once and is refundable on canceling membership Plus less than $100 one-time membership fee that is non-refundable up on canceling membership) to enroll into Takaful. The entire procedure will take approximately 4 to 6 weeks to receive membership.

4. Upon receipt of the Takaful membership, you will be entitled to receive a membership discount with the insurance provider. So, now contact the insurance provider (For example, in Canada, contact “The Co-operators Group Insurance” ) and sign up for a policy.

Takaful Worldwide

Ansar Co-operative Housing Corporation Ltd, Toronto, ON, Canada

Access Ansar Housing here

Zayan Takaful, USA

Access Zayan Takaful here

Cobalt Underwriting, London, UK

Access Cobaltuw here

Takaful worldwide

Takaful has a large worldwide insurance-providing network, including UAE, Bahrain, Qatar, Egypt, Bangladesh, Syria, Saudi Arabia, Brunei, Gambia, Indonesia, Iran, Iraq, Jordan, Kenya, Kuwait, Lebanon, Malaysia, Mauritania, Pakistan, Palestine, Bahamas, Senegal, Shri Lanka, Sudan, Thailand, Tunisia, Trinidad, Tobago, Yemen, and many other countries.

You may also learn more about Muslim faith based mortgage here.

Members on Wassiyyah enjoys many benefits which you can sign up either Basic or Premium membership here.

Disclaimer: This information are to be used for reference only. Please contact respective insurance operator for more detailed information.

Disclaimer: This information are to be used for reference only. Please contact respective Takaful operator for more detailed information.