Muslim Takaful Insurance

Updated: Mar 25

Takaful is the Association provides Islamic insurance for fulfilling the requirement of Insurance on Islamic prospective.

Takaful is an Arabic word meaning “guaranteeing each other” or “joint guarantee”. The Tabarru’ system is the main core of the takaful system making it free from uncertainty and gambling. Tabarru’ means “donation; gift; contribution.” Each participant that needs protection must be present with the sincere intention to donate to other participants faced with difficulties. Therefore, Islamic insurance exists where each participant contributes into a fund that is used to support one another with each participant contributing sufficient amounts to cover expected claims.


The objective of takaful is to pay a defined loss from a defined fund. Muslim jurists conclude that insurance in Islam should be based on principles of mutuality and cooperation.

Encompassing the elements of shared responsibility, joint indemnity, common interest, and solidarity. Theoretically, Takaful is perceived as cooperative insurance, where members contribute a certain sum of money to a common pool. The purpose of this system is not profits but to uphold the principle of “bear ye one another’s burden.


Everyone needs insurance whether you are owning or renting a home, vehicle or for any medical needs. Takaful is the only product currently in the market which meets the Muslims needs of faith based insurance. It is popular and commercially used in many countries worldwide such as USA, Canada, UK, Australia, UAE, Bahrain, Qatar, Egypt, Bangladesh, Syria, Saudi arabia, Brunei, Gambia, Indonesia, Iran, Iraq, Jordan, Kenya, Kuwait, Lebanon, Malaysia, Mauritania, Pakistan, Palestine, Bahamas, Senegal, Sri Lanka, Sudan, Thailand, Tunisia, Trinidad, Tobago and Yemen.

Does Takaful gives you what you need on Shariah compliance?. May be not 100% but still far better than conventional insurance which has riba or interest portion.

The main difference between conventional and Takaful is, it is a mutual agreement rather than business relationships based on principle of mutual cooperations and helping each other in needs.

Takaful is ideal choice for individual muslims needing Home and Auto insurance as well as muslim religious association building including mosques and other similar premises.

Similar to any other insurance provider, Takaful can grow based on number of members signing up as one of the limitations in Canada for Takaful is lacking the number of members. So contributing towards Takaful is by signing up with Takaful.

Takaful has strong partnerships with the reputed insurance provider which has well established credentials for many years worldwide and so, it is not that you are signing up which has no bases.

The premium of Takaful operator is very close or less than the conventional insurance company. The only extra investment you do is to become a member with Takaful operator and to do so, you will have to buy one time less than a $1000 share approx. that is refundable upon canceling membership. However you may lose a non-refundable fee typically $100 in case if would like to switch back to other insurance in future. The entire procedure may take approximately 4 to 6 weeks until receiving membership.

Muslim takaful insurance


The procedure may differ from one Takaful operator to another. In general can be briefly explained below.

  1. Contact Takaful operator in your country and find out who is an insurance provider on their behalf. (For example, in Canada, the “Ansar Cooperative Housing Corporation ltd @” is the Takaful operator and “The Co-operators Group Insurance” is the insurance provider on behalf of Takaful).

  2. Before signing up, obtain the quote from the Takaful insurance provider in checking to fit your budget. While talking to Takaful insurance provider, do ask for discounted rate for Takaful members. Usually, their premium closely aligns with other Insurance provider premium.

  3. Once you have obtained the quote and decided to switch then contact Takaful operator, for example in Canada is “Ansar Cooperative Housing Corporation ltd” and fill out the form to obtain membership. You may have to buy few minimum shares (approximately less than $1000 one time and is refundable up on cancelling membership Plus less than $100 one time membership fee that is non-refundable up on cancelling membership) in order to enroll into Takaful. The entire procedure will take approximately 4 to 6 weeks until receiving membership.

  4. Up on receipt of Takaful membership, you will be entitle to receive membership discount with insurance provider. So, now contact insurance provider (For example in Canada, contact “The Co-operators Group Insurance” ) and signed up for policy.


Ansar Co-operative Housing Corporation Ltd, Toronto, ON, Canada

Website Link:-

Zayan Takaful, USA

Website Link:-

Cobalt Underwriting, London, UK

Website Link:-

Takaful worldwide

Takaful has large worldwide insurance providing network including UAE, Bahrain, Qatar, Egypt, Bangladesh, Syria, Saudi arabia, Brunei, Gambia, Indonesia, Iran, Iraq, Jordan, Kenya, Kuwait, Lebanon, Malaysia, Mauritania, Pakistan, Palestine, Bahamas, Senegal, Shri lanka, Sudan, Thailand, Tunisia, Trinidad, Tobago and Yemen.

Disclaimer; This information are to be used for reference only. Please contact respective Takaful operator for more detailed information.

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