Principle of Takaful
The essential idea of insurance in Islamic refers to the era of the prophet Mohammed (Peace Be upon Him) when the Arab relations were built on assistance Joint-responsibility, collaboration and on the blood money system which was practiced by the Arab tribes.
The idea of the Takaful business is based on the basic rule of alternative co-operation between groups of individuals who are in risk of common danger, so they co-operate against the danger that they may be imposed to. The individual joining the group endures whatever the individuals suffer as a group.
Therefore, Takaful insurance exemplify the idea of the joint- liability and an advanced reality model of that matches the nature of variations and developments in our modern life.