S.No |
TAKAFUL |
CONVENTIONAL INSURANCE |
| 1 |
Takaful is based on Tabarru Contract |
Conventional Insurance is a Compensation Contract.
(Shari'ah rulings are different for each type of contract) |
| 2 |
Participants can have a share in the surplus. |
Surplus entirely belongs to the Insurance Company
|
| 3 |
Taburru'at paid to Waqf belongs to the Waqf, the Operator is not owner of this amount. |
All investment profits belong to the Insurance Company.
|
| 4 |
As owner of the Waqf Pool is Waqf itself so all investment profits also return to the Pool and not to the Operator. |
All investment profits belong to the Insurance Company. |
| 5 |
Through Takaful the values of co-operation spreads in society in matters of righteousness and Taqwa. |
The only objective is to do commercial business and trade. |
| 6 |
In Takaful, the company (Operator) serves in the capacity of Wakeel. |
Companies serve as the owners of the business. |
| 7 |
Shari'ah Board is an essential part of any Takaful setup that supervises all investment activities of the company. Shari’ah Board comprising of at least 3 scholars is compulsory as per the Takaful Rules 2005. |
No such kind of supervision takes place nor there any law concerning it. Insurance company invests their funds in any business they consider fit, irrespective whether the business is Shari’ah-compliant and Halal or not.
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