The Origins & Development of Takaful
Islamic insurance or Takaful is not a new or recent phenomenon, despite the common view prevalent among many. In fact, it was practiced by the Arabs of Arabia before and after the advent of Islam. Islamic Scholars (Ulema) point to many different examples that range from pre-Islamic Bedouin practice to the time of the Prophet Mohammed’s life (Sunnah) demonstrating that Takaful was practiced by Arabs, at large, and Muslims and is therefore a legitimate Islamic financial practice.
The word Takaful is in fact derived from the Arabic verb Kafala, which means to aid or help out. It is from this definition that the basic concept of Takaful was formed, which is that of shared responsibilities, solidarity and mutual cooperation, which in turn provides for mutual financial security and assistance to safeguard participants against a defined risk. In other words, the basic premise of Takaful is to bring equity to all the parties involved in an operation based on helping others who are facing risks and misfortunes and where profit earning is not the prime objective. For more...
Arig Features
- The Origins & Development of Takaful (2004)
- Insurance in the Arab World (2001)
- Ancient Islamic Coins (2000)
- Art of Islamic Architecture (1998)
- Arab Contribution to Math (1997)
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