I just made a short write up on "INSURANCE IN ISLAM" for my WhatsApp group "HOUSE OF FIQH" and also posted it on Facebook.

My brother @TasiuAl saw it and urged me to share it here, i have to obey him 🤣

INSURANCE IN ISLAM

A SHORT THREAD:

1. Insurance is also known as takaful (in arabic), just that there are some few differences between the conventional insurance and Takaful.

2. How takaful works: All participants (policyholders) agree to guarantee each other and instead of paying premiums, they make contributions to a mutual fund, or pool. The pool of collected contributions creates the Takaful fund.

3. The amount of contribution that each participant makes is based on the type of cover they require, and on their personal circumstances. As in conventional insurance, the policy (Takaful Contract) specifies the nature of the risk and period of cover.

4. The Takaful fund is managed and administered on behalf of the participants by a Takaful Operator who charges an agreed fee to cover costs. These costs include the costs of sales and marketing, underwriting, and claims management.