Key elements in Takaful – Islamic way of Sharing.
Absentes - a contract where the parties are not present at the time of agreement
Al-kharaj bi al-daman - the concept that reward should.correspond to risk involvedTakaful- is an Arabic term derived from the root word kafala, meaning to guarantee. To be more precise, it is derived from the verb 'Takafala' meaning to mutually guarantee and protect one another. Therefore, literally, it means mutual help and assistance. It can be noted that the contract of Takaful is based on the concept of helping one another, whereby each and every participant contributes to the common fund in order to provide financial assistance to any member who needs help, as defined in the mutual protectionscheme. In principle,Takaful is v:ry similar to conventional mutual insurance in terms of its philosophy and structure. However, it differs significantly from conventional mutual insurance as all its operations should be based on Islamic principles, including investment activities, the establishment of the Shari'ah board and causes for legitimate claim, which exclude causes such as suicide and death under the influence of alcohol,