Question: I recently heard about Takaaful insurance and was interested in taking out a scheme to cover my home, business, cars, etc. Takaaful claims to be fully Shari’ah compliant, but when I went to the Takaaful website and saw the different schemes that they offer, I couldn’t see any difference with normal insurance. Also, when I dialed the number on their website, I reached a conventional insurance company who told me that Takaaful is part of them and operates under their license. Can you please explain to me whether Takaaful is permissible or not. Jazakallah.

Answer: After carefully studying and examining the Takaaful scheme, we have not found it to be any different to conventional insurance. Conventional insurance has been declared haraam by all the Ulama on account of the elements of interest and gambling being found in it. When we examine the Takaaful scheme, we find that it contains…