| From Thehindu.com: Conventional insurance, which is based on an exchange of premium payments now for future indemnities in case of specified events, is not valid under Shari’ah law due to the uncertainty (gharar) of the value of the future indemnities, informs ‘Takaful Islamic Insurance’.
Part of the solution to the juristic problem lies in the adoption of a mutual structure for underwriting insured risks, with the insureds (participants) mutually insuring one another on a non-profit basis according to the principle of takaful (the Arabic word for ‘solidarity’).....................................Full Article: Source
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