1. Implementation of Mutual Insurance and Takaful What is a Takaful Operation
A typical Takaful operation is a hybrid of both a mutual underwriting pool on behalf of participants as well as an Islamic commercial operation belonging to the Takaful operator
Cooperative Risk-sharing for Protection. (Cooperative alone is not sufficient to be a Takaful operation)
Clear segregation between Participant and Operator-no risk sharing
Sharia (Islamic) Compliant Investment strategies.
Avoids Riba (interest)
Avoids al Maisir (gambling).
Al Gharar (uncertainty)-Forgiven through the adoption of Tabar’ru (charitable donation)given, using
Application of Islamic contracts-Wakala or Mudarabah
Sharia Advisory Oversight-initial and ongoing
Fatwa – judicial opinion