 Understanding the pillars of Takaful. Chapter 1 in Encyclopedia of Islamic Insurance, Takaful and Retakaful, 2019, pp 1-51 from Edward Elgar Publishing Abstract: The word Takaful stands for shared responsibility, shared guarantee, collective assurance and mutual undertakings. In Takaful, there are usually four parties involved: the participant, the operator, the insured and the beneficiary. The nature of Takaful is that in a society, anybody who has legal capacity may contribute an amount of money to a mutual cooperative fund. Thus, those who contribute to the mutual fund are known as participants, while those who are among the participants who face a risk and are assisted by the fund are known as the insured. Those who actually benefit from the fund are known as the beneficiaries of a cooperative fund. The monetary contribution made by the participants to the fund is known as the mutual contribution. The fund is managed by a registered or licensed entity as a corporation known as a Takaful operator. The operator binds himself bilaterally to manage the fund according to Shari’ah principles, and also to provide reasonable financial security against loss or damage as a result of a well-defined risk. Keywords: Asian Studies; Economics and Finance; Law - Academic; Politics and Public Policy (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:elg:eechap:18149_1 Ordering information: This item can be ordered from Access Statistics for this chapter More chapters in Chapters from Edward Elgar Publishing |
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