DIB Bank

How is Takaful different from conventional insurance?

Takaful eliminates the element of chance, gambling and ambiguity by:

a. Investing the deposit pool in only Shari’a compliant products.

b. The participants are investors and they share the profit of their investment.

c. A Takaful Company manages the Takaful Fund on Wakala or Mudharaba basis. At the same time they compensate those of the group who are exposed to losses.

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