Islam, through its divine teachings and comprehensive legislation, calls for the establishment of a society founded on cooperation, solidarity, and mutual support. Takaful insurance embodies these core Islamic values by providing a Sharia-compliant framework for mutual financial protection among participants.
“And cooperate in righteousness and piety, but do not cooperate in sin and aggression.”
(Surah Al-Ma’idah, 5:2)
“O you who have believed, bow and prostrate and worship your Lord and do good – that you may succeed.”
(Surah Al-Hajj, 22:77)
“And let those [executors and guardians] fear [injustice] as if they [themselves] had left weak offspring behind and feared for them. So let them fear Allah and speak words of appropriate justice.”
(Surah An-Nisa, 4:9)
These verses establish the foundation of cooperation, righteousness, and mutual care — the very principles upon which the Takaful system is built.
“When the Ash‘arites ran short of provisions during battles, or when the food of their families in Medina diminished, they would collect what they had in one cloth and then distribute it among themselves equally. They are of me, and I am of them.”
(Agreed upon by Al-Bukhari and Muslim)
Interpretation:
This hadith reflects the spirit of mutual aid and shared responsibility, which forms the essence of Takaful insurance.
“The example of the believers in their affection, mercy, and compassion for each other is that of a body: when any limb aches, the whole body reacts with sleeplessness and fever.”
(Agreed upon by Al-Bukhari and Muslim)
And:
“Whoever relieves a believer’s distress in this world, Allah will relieve his distress on the Day of Resurrection. Allah helps His servant as long as the servant helps his brother.”
(Reported by Muslim and Abu Dawud)
And:
“A believer to another believer is like a building whose different parts support one another.”
(Agreed upon)
Interpretation:
Through the collective payment of compensations and mutual financial support, Takaful represents a practical application of the Prophet’s call to compassion and cooperation among believers.
C. The ‘Aqilah System in Islamic jurisprudence, established by authentic Sunnah, is another example of collective responsibility.
In cases of accidental killing, the payment of diyah (blood money) is borne by the male relatives (‘Aqilah) of the offender — demonstrating shared obligation and mutual protection.
Takaful mirrors this principle by enabling participants to voluntarily contribute to a common fund to cover one another’s losses.
The objectives of Islamic law are centered on achieving human welfare by promoting benefit and preventing harm.
Takaful fulfills this objective by offering participants a means of collective protection against risks through voluntary contributions, in full harmony with the moral and social values of Islam.
The voluntary donation (tabarru‘) structure of Takaful eliminates gharar (uncertainty) and maysir (gambling), as charitable contracts are valid even when some uncertainty exists, since they are acts of benevolence aimed at divine reward.
Takaful insurance has been endorsed and approved by leading Islamic jurisprudential authorities worldwide, including:
“After study and deliberation, the Council resolved that cooperative insurance is permissible and can serve as an alternative to commercial insurance.”
“Insurance conducted by cooperative societies in which participants assist one another is lawful and represents cooperation in righteousness.”
“After reviewing the operational structure of the Islamic Insurance Company, it was concluded that its system is based on cooperative insurance, which is permissible under Sharia, whether voluntary or compulsory.”
The Sharia Supervisory of the Palestinian Takaful Insurance Company ensures that all activities, products, and investments comply with the principles of Islamic Sharia.
The Board reviews insurance contracts, financial operations, and re-Takaful arrangements to ensure complete adherence to Islamic standards.
Members of the Sharia Supervisory
Takaful insurance represents the embodiment of Islamic values of cooperation, solidarity, and shared responsibility.
It provides a Sharia-compliant alternative to conventional insurance, ensuring financial protection, social justice, and ethical investment in accordance with the principles of Islam.
