Takafol Concept

Takafol is a part of Islamic economic system. Takafol in Arabic means joint guarantee. It means that the members participate in takafol plans for shared benefits and loses.

The concept of mutual assistance is also emphasized in Holy Quran “Help you one another unto righteousness and pious duty. Help not one another onto sin and transgression, but keep your duty to God”.

Islam does not approve of receiving or giving in interest. Consequently, financial institution are forbidden to engage in financial transactions involving riba (interest). All Takafol products are designed based on strict sharia principles:
- Riba- free investment
- Based on solidarity principles rather then probabilities – GHARRAR (principles of gambling).
- Transparent and clear definition of benefits and charges
- No profit to the product provider from favourable mortality experience.
In order to comply with the above rules, takafol participants’ funds are invested in assets without any fixed interest and the mortality risk is shared on a solidarity basis so that any loss or profit due to mortality is shared between the participants.  
Authorized and Regulated by the Financial Services Authority