The term Takaful originates from Arabic verb ‘’Kafalah’’ which means ‘’to help one another’’ or ‘’mutual guarantee’’. Thus the word Takaful refers technically to shared responsibility, shared guarantee, collective assurance and mutual undertakings by a group.
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Takaful is a mutual co-operation between members of a pool who safeguard each other against defined risks and share in surplus where the fund is profitable. The participants co-operate and share risks among themselves by contributing to a common Takaful Fund, while the operator manages the fund and resources as a trustee.
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Takaful Proposal Forms
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