WHAT IS TAKAFUL?
The word takaful comes from the Arabic root word Kafala, meaning "guarantee".
Takaful therefore is the practice whereby individuals in the community jointly guarantee themselves against loss or damage. For example, individuals can make charitable donations to a common fund from which they may each draw in the event that they suffer loss to their houses or livelihoods. It was first established in the early Islamic era with the purpose of promoting mutual solidarity and co-operation among the Muslim community.
In Takaful the elements of riba (interest), maisir (gambling), gharar (uncertainty) are removed from the operations.
There are almost following types of Takaful models practiced globally.