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What is Takaful?

“Takaful” is the Shari’ahcompliant brand name for the Islamic alternative to conventional insurance, which explains how individuals are responsible to cooperate and protect one another. It is based on the principle of Ta’awan or mutual assistance.

Takaful is a type of Islamic financial system wherein members/Takaful participants or policyholders contribute small amount of money (Tabar’ru) into a pool system to guarantee each other against accidental and unforeseenloss or damage.
Takaful was introduced as an alternative to those in the commercial insurance industry, which are believed to go against Islamic restrictions on interest (الربا) (riba), gambling (الميسر) (al-maisir), and uncertainty (الغرر) (al-gharar) principles—all of which are forbidden in shari’ah. Thus the Takaful product and services fulfill the need of our society who has been neglected in conventional insurance due to religious issues.
Therefore, the objective of introducing Takaful to the market is to meet the needs of our society, which has been unable to use conventional insurance due to religious prohibitions. The idea is all about sharing the burden with each other.
The Takaful fund is managed and administered on behalf of the participants by a Takaful operator, who charges an agreed-upon fee to cover costs.
Under the Takaful financial system, all participants or Takaful Policyholders are considered as a shareholder or an owner of the fund and have full right to acquire a report on the activity of the Takaful Operation.

Governing principles of Takaful

The followings are the simple procedures of how the Takaful system works:-

Nile Insurance Company S.C has launched the Takaful Insurance service with a brand name of “Aman Takaful” with Shari’ah based principles. The product and services provided by Takaful Window of Nile Insurance Company fulfill the need of our esteemed customers who have been neglected in conventional insurance due to religious issues. Therefore, the inauguration of this Takaful/Islamic Insurance will support the development of the Interest-Free Banking services by providing financial services which are fully in compliance with the Shari’ah principles.
Our Company has established a council of Shari’ah advisors who have ample experience in commercial jurisprudence, fiqh al-muamalat, and are well known to the public at large, and who ascertain every activity of the Takaful Window is performed in conformity with pertinent Shari’ah laws.

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Nile Insurance Company (S.C) is one of the pioneer private insurers established in April 1995 with a capital of Birr 12.5 Million. The Company has a legal entity registered with the licensing …

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