Takaful Insurance; All you need to know (2)

Continuation from my previous post....

Takaful insurance and it operations is based on some underlying principles that serves as the bedrock on which it existence lies;

• It must operate according to Islamic co-operative principles.
• Policyholders come together for a common good.
• Profit/losses are divided and liabilities spread according to the community pooling system.
• Uncertainty is eliminated in respect of contribution and compensation.
• Each individual pays a part of the contribution to help those that need assistance.
• The company may invest its funds only on a profit and loss sharing basis, as approved by the Sharia.

Taking a look at key elements in the operations of Insurance business and how it impacts on Takaful Insurance;

Takaful Insurance; All you need to know (1)

In modern business, one of the ways to reduce the risk of loss due to misfortunes is through insurance. But, the fundamentals of insurance principle is against Islamic believes which led to muslim scholars coming up with the concept called TAKAFUL INSURANCE.

I will be trying as much as possible to summarise the idea behind this concepts in two (2) blog  posts.  I hope you enjoy and find it educative enough.

Takaful is commonly referred to as Islamic Insurance; this is due to the apparent similarity between the contract of kafalah (guarantee) and that of Insurance.

Takaful is founded on the cooperative principle and on the principle of separation between the funds and operations of shareholder, thus passing the ownership of the takaful (insurance) fund and operations to the policyholder.

InsurAvenue......... Allaying your Insurance fears

It is universally agreed that no modern economy can operate efficiently without the support of an organized, disciplined and viable insurance industry. This explains why most governments attach such great importance to the performance of their insurance industry, as well as the character. quality of the institutions, and professionals that operates in the industry.

The whole essence of this blog is to educate the public on everything they need to know about insurance and how the various activities within the industry affects their personal lives, businesses and the economy at large.

Lets take a look at the current structure existing in the Nigeria Insurance Industry;