{"id":94,"date":"2017-02-06T10:45:44","date_gmt":"2017-02-06T10:45:44","guid":{"rendered":"http:\/\/139.59.38.172:8081\/?p=94"},"modified":"2019-11-04T09:31:58","modified_gmt":"2019-11-04T09:31:58","slug":"what-is-takaful-coverage-in-uae","status":"publish","type":"post","link":"https:\/\/www.mymoneysouq.com\/financial-blog\/what-is-takaful-coverage-in-uae\/","title":{"rendered":"What is Takaful coverage in UAE?"},"content":{"rendered":"

Takaful or \u0627\u0644\u062a\u0643\u0627\u0641\u0644<\/span>\u00a0in Arabic can be translated as solidarity or mutual guarantee. (<\/span>Source<\/span><\/a>) In UAE, it is a type of Islamic insurance where people pool money to insure each other against any loss or damage. It is based on Shariah laws and highlights the responsibility of people to cooperate and protect each other.<\/span><\/p>\n

Takaful has its roots in Islamic scriptures and has been reportedly practiced since 622 AD. Islamic scholars believe that commercial insurance is disallowed for Muslims because it contains Al-Gharar (uncertainty) and Al-Maisir (gambling). However, it is available to non-Muslims too.<\/p>\n

Types of Takaful coverage<\/strong><\/h2>\n

Takaful coverage can be broadly classified into three types:<\/span><\/p>\n

    \n
  1. Takaful Life Insurance<\/span><\/li>\n
  2. Takaful Non-life Insurance<\/span><\/li>\n
  3. Takaful Reinsurance<\/span><\/li>\n<\/ol>\n

    Let\u2019s look at the salient features of each of them.<\/p>\n

    Takaful Life Insurance<\/strong><\/h3>\n

    <\/p>\n