INSURANCE BASED ON ISLAMIC FINANCE RULES
Insurance company JSC "GROSS SUG`URTA KOMPANIYASI" has opened a new direction - Islamic insurance (Takoful)
Takoful is the formation, in accordance with the principles of Islamic finance, of the Fund (Takoful insurance reserve) at the expense of funds and contributions of participants, as well as compensation for losses of participants from the Fund.
Takoful (from Arabic تكافل, means providing mutual guarantees) – Islamic insurance. At its core, Takoful is a mechanism for distributing losses among Fund participants in accordance with the principles of Islamic finance.
Takoful does not pursue the goal of making a profit, but is based on the provision of mutual assistance by the participants of the Fund to each other.
The main “prohibitions” in Takoful are: gharar – uncertainty or speculation; maysir – a game based on risk and/or guarantee; riba – usury (in Islam it is considered as providing an interest-bearing loan regardless of the amount of interest)
DIFFERENCES TACOFUL FROM TRADITIONAL INSURANCE
ISLAMIC INSURANCE MANAGEMENT MODEL
The insurance company GROSS SUG`URTA KOMPANIYASI JSC has chosen a management model - wakala, according to which the Takoful insurance reserve is formed through voluntary contributions of participants, and the reserve resources are used to compensate for damage caused to the participant.
- Participants voluntarily pay an insurance premium (premium) to the Takoful Operator.
- The Takoful operator receives a limited amount of income from the contributions received.
- Contributions replenish the Takoful insurance reserve, from which the Operator makes compensation payments to compensate for losses of participants.
- A certain portion of Takoful's insurance reserve (less coverage fees and Operator fees) may be returned to participants.
