Takaful industry in Pakistan: Problems & prospects

Takaful is an Arabic word that means “Guaranteeing each other”. It is a system of Islamic Insurance based on the principle of TA'AWUN (mutual assistance) and TABARRU’ (Gift, Give away, donation) where the risk is shared collectively by the group VOLUNTARILY. This is a pact among a group of members or participants who agree to jointly guarantee among themselves against loss or damage to any of them as defined in the pact. The paper deals with problems and prospects of TAKAFUL industry in pakistan