Takaful in Arabics, means joint guarantee. Thus it can be visualised as a pact among a group of members or participants who agree to jointly guarantee among themselves against loss or damage that may inflict upon any of them as defined in the pact. Should any member or participant suffer a catastrophe or disaster he would receive a certain amount of money or financial benefit from a fund, as also defined in the pact, to help him meet the loss or damage.
In other word, the basic objective of Takaful is to pay for a define loss from a defined fund. Each member of the group pools effort to support the needy. It means mutual help among the group.
Source : Oswald Timothy Edward & Yon Bahiah Wan Aris, "Fundamental of Insurance", UiTM, 2002.
No comments:
Post a Comment