Your life, Our Promise

What is family Takaful?


What is Takaful?

Al Hilal Takaful offers a range of Savings & Protection plans that would help you protect your family’s financial future. Whether it is securing your child’s education through our Education plan, buying your dream house with our Regular Savings Plan, or traveling around the world with our Retirement plan, Al Hilal Takaful is here to help you realize and achieve your dreams.

Is the concept of insurance haram in islam?

The concept of insurance is not haram in Islam when undertaken in the framework of Takaful or mutual co-operation and solidarity. Contrary to conventional insurance, Takaful does not consist of non-permissible elements such as gharar (uncertainty), gambling and investing in interest bearing instruments.

What is Shari'ah?

Shari’ah is an Islamic code of law based on the Holy Quran and Sunnah, and covers aspects of day-to-day life.

Why is conventional insurance considered haram for muslims?

Conventional insurance is based on a contract of exchange (sale) between the insurance company and the covered person. This contract is void because it has one or more of the following elements, which are not permissible from a Shari’ah’s perspective.

a) Gharar (uncertainties) : conventional insurance has an element of gharar due to the promise to pay a sum of money upon the occurrence of unexpected events.

b) Maysir (gambling) : the existence of gharar (uncertainties) leads to maysir (gambling) in conventional insurance. The insured may either lose all the contributions he/she has paid or be compensated for the losses he/she incurred for the insured event.

c) Riba (usury / interest) : the investments of insurance funds in interest bearing securities such as bonds and stocks, which do not comply with Shari’ah principles, pose a major problem for Muslims who purchase the conventional insurance.

Why do we need Takaful if everything that happens in this world is by the will of Allah (Qada’ and Qadar)?

Takaful is not superseding the power or will of Allah in one’s life, death or destiny (Qada’ and Qadar) but is achieving the pleasure of Allah who orders us to “help … one another in righteousness and piety”. The main objective of Takaful is to provide a level of comfort to the participants against unexpected future risk through mutual cooperation. To minimize the financial impact on your family should unexpected misfortunes happen to you, you might want to consider appropriate Takaful plans so that you can continue to maintain the financial comfort for your family.

How does Al Hilal Takaful ensure that its products are Shari'ah Compliant?

Al Hilal Takaful has a meticulous process for reviewing all of its products and making sure they are Shari’ah compliant. This is done through its Shari’ah Supervisory Board, which is led by prominent Shari’ah scholars.

How does Takaful protection work?

Your contribution for cover is pooled together with other participants into one fund i.e. the Takaful Fund. Benefits are paid from the Fund to the participants who suffer a loss. In other words, each participant essentially protects others by providing compensation from the Fund for the losses incurred by other participants.

Why is Takaful Shari'ah compliant?

Takaful is Shari’ah compliant as it is based on the principle of cooperation, not sale or exchange, and mitigates the objectionable aspects of gharar, maysir, and riba. This is contrary to conventional insurance, where customers pay contributions as a price for protection against a loss. The customer will lose the contribution for to the insurance company if a loss does not occur. However, your contribution to the Takaful Fund is an agreement with other participants of the Fund to mutually help each other by way of providing financial assistance should any participant suffer a loss. Moreover, the Takaful Fund invests your contributions in a Shari’ah- compliant manner that avoids any interest-based instruments. In addition, any surplus from the Takaful Fund will be redistributed to the participants. The Takaful Company therefore only manages this pool (for a fee) for the benefit of the participants.

How can I be certain Takaful plans are Shari'ah compliant?

All our Takaful plans will be reviewed and approved by Al Hilal Takaful’s Shari’ah Supervisory Board prior to these plans being offered to the public.

The Shari’ah Supervisory Board members are:

  • Professor. Dr. Ali Al-Quradaghi
  • Professor.Dr. Abdulaziz Al-Qassar
  • Dr. Fareed Mohammed Hadi