INTRODUCTION

What is takaful? Takaful is a joint guarantee or guaranteeing

each other. It is a system of Islamic Insurance based on the principle of ta’awun and tabarru’. It is a basic objective of takaful to pay for a defined loss from a defined fund. Insurance is allowed in Islam in risk sharing mechanism; as long as any elements that contravene Islamic principles are avoided as sharing the risk with the purpose of helping each other is recommendable as mentioned in the Al-Quran. For insurance to be accepted by Islamic tenets, it must founded on the principles of tabarru’ and ta’awun.

علىاالثم والتعاونوا علىالبروالتقوى وتعاونواوالعدوان

Artinya: " Dan tolong-menolonglah kamu dalam hal mengerjakan kebaikan dan takwa, dan janganlah kamu tolong-menolong dalam hal perbuatan dosa dan permusuhan." (QS. Al Maidah: 2)

Taawun

Ta’awun or literally known as mutual assistance forms the basic of many Islamic practices, both social and

economics, includes takaful.

This principle allows participants to share their risk and exposure

of risk with the intention of helping one another within the Takaful group which mean that

through this principle,

It is an arrangement whereby a group of participants each pay fixed amount of money, and the compensation for

the losses of participants of the scheme are paid in lump sum amount.

Help you one another unto righteousness and pious duty. Help not one another unto sin and transgression, but keep your duty

to Allah." — Surah Al-Maidah V:5.2-5

This is not a contract where of party offers and sell

protection and the other party accepts and buy the

offered at a certain amount. It is an arrangement whereby

a group of participants each pay fixed amount of money,

and the compensation for the losses of participants of the

scheme are paid in lump sum amount.

THE ELEMENT ATTACHED TO THE CONCEPT OF TA’AWUN IN THE WORLD OF TAKAFUL CAN BE DIVIDED INTO THREE QURANIC PRINCIPLE VIZ :-

Mutu

al

Resp

onsi

bili

tyMutual

Cooperation M

utu

al

Prote

ction

MUTUAL RESPONSIBILITY

The feeling of responsibility towards one another among the Muslim is the foundation of Islamic solidarity of Islamic community, which makes the unfortunate and the needy feel secured by being sheltered by the rich and the sick feel not much hurt because they know the healthy will provide.

Takaful is based on the agreement among the group of person share responsibility of loss or damage that may inflict them.

THE PRINCIPLE OF MUTUAL RESPONSIBILITY WAS ESTABLISHED IN A SEVERAL HADITH, WHICH STATED AS FOLLOWS:

•“Each one of you has a responsibility and each one of you is responsible towards those under your responsibility.” (Mutafaq‘alaihi).

•“One is not judged as righteous until he cares for his brother as much as he cares for himself." (Bukhari).

•" The relationship between one believer and another (in a community) is like that of a building where one part of the building strengthens the other parts." (Mutafaq 'alaihi).

MUTUAL COOPERATION

Oxford Advanced Learner’s Dictionary defined cooperation as:“ The fact of doing something together towards

a shared aim.” Cooperation- One of the objective of Takaful

which mean also as mutual help among the members of the defined group.

This has been stated in Sunnah and Hadith.\ By practice, mutual cooperation based on the

perspective of takaful is members of a takaful company join in contributing as certain sum of money at their subscriptions to common tool or saving ; losses are divided and liabilities spread.

. SOME OF THE QURANIC INJUNCTION AND HADITH STATING THE PRINCIPLE ARE AS FOLLOWING:

"Help one another in furthering virtue and God-consciousness (taqwa), and do not help one another in furthering evil and enmity" (Quran 5:2).”

A Muslim is the brother of a fellow Muslim. He should neither commit oppression upon him nor ruin him; and he who meets the needs of a brother. God will meet his needs and he who relieves his brother from hardship Allah will relieve him from the hardness to which he could be put on the day of judgement (Muslim).

MUTUAL PROTECTION

It is a nature for a human beings requires protection in order to be able to live in a macro-society level.

. The principle hereby was intended to provide this necessity of protection.

In takaful,this underlying principle of Ta’awun means that to provide mutual financial and other forms of aid to members (of the group) in case of specific need, whereby members mutually agree to contribute monies to support his common goal.

MUTUAL PROTECTION

This principles are well stipulated by both in the Holy Qur’an and Hadith of The Prophet Muhammad (PBUH) say “(He) who has fed them against hunger and made them safe from fear.” (Quraish:4).

The Prophet (s) said, “Indeed a believer is one who can give security and protection to the life and property of mankind.”(Ibne Mazah) The Prophet also said, “ A person is not believer if he believer if he sleeps comfortably on a full stomach while his neighbour suffers from hunger.

CONCEPTS AND GOALS Takaful has the same goal with conventional

insurance which provides services to the policyholders or participants.

Operators using the concept of cooperation permitted by Islamic law of contract based tabarru’ and ta'awun.

This concept is independent of any elements that are contrary to the laws of Islam, such as gharar, gaming, and other elements.

Takaful fund formed from the contributions of the participants (policyholders) based on tabarru’ contract and it will be used to save each participant’s takaful of accident or calamity.

Any surplus remaining after the payment of compensation, expenses, and deductions for reserves will be returned to the participants according to their contribution rates.

Contract of tabarru’ supported by the fact that the takaful company does not have any absolute installments contributed by participants.

If there have an excess of the fund is returned to them, or collected for charity.

HOW TO APPLY THE CONCEPTS Risk fund is the place where the participant’s

collected donations is placed. Each participant will assist them when some of

them were afflicted. An application of tabarru in takaful has eliminated

the elements of Gharar, Riba and Maisir. This is because tabarru' is categorized as a party

to the contract does not require any exchange or reciprocal exchange contracts.

Through the implementation of tabarru’ is bound by the principles of takaful to create an atmosphere of helping each other.

Thus, there is no term 'money at risk' in this situation as it tries misinterpreted as money donations will be rewarded nicely by Allah Almighty. Such as the application of operators, in the absence of a claim for covered items, donations of tabarru’ serves as a contribution to charity that is very special place in Islam.

CONCLUSION

Takaful is a distant from commercial or capitalist form of insurance. It is purely organized along the notion of solidarity, co-operation and mutual assiistance which would results in the consideration of the participants in both the insured and the insurer to the schemes. Participants in both insuring bodies are based upon the principle of “bear ye one another’s burden” which lead to the basic principle of Islamic insurance, helping to ease each other or other person burden.