Insurance Vs Takaful Comparison. This furthermore suggests that the conventional insurance. Haemala thanasegaran (2008) also defined takaful as mutual insurance in the islamic system with compliant with principles of shariah which is known as islamic law.
In conventional insurance, neither the insured nor the insurer knows when the loss will occur or what will be the amount, or whether it will occur in first place. The difference between insurance and takaful is that “insurance” is a means of indemnity against a future occurrence of an uncertain event and “takaful” is a cooperative system of reimbursement in case of loss; Takaful is an arabic word which explains as “guaranteeing each other” (tan kin lian, 2006).