"Takaful" is a risk management concept that is based on mutuality and partnership. Relying on the principle of pooling donations together to create a fund that safeguards the interests of all members, Takaful creates an insurance scheme that is free of interest and uncertainty while being grounded in fairness and mutual benefit.
Derived from the Arabic word that means “mutual guarantee or protection”, Takaful is an Islamic insurance concept that is firmly established in Islamic financial principles, observing the rules and guidelines of Islamic law, which have been practiced in various forms for over 1400 years.
In contrast to the risk-transfer model of conventional insurance, Takaful offers a socially acceptable concept of risk pooling. A contribution to a Takaful Insurance policy means you become a member of a common pool of funds and as a result you are entitled to benefits under the rules of that fund. It allows individuals to collectively help each other in times of need, while distributing risks amongst a larger pool of people.
Pioneers of Islamic Finance in Maldives, Amana Takaful (Maldives) PLC, completing its second year as a listed entity in the Maldives Stock Exchange, announced to its customers a "payment of surplus", which essentially means Takaful policyholders will receive a proportionate refund from the SURPLUS of the Risk Fund.