Takaful is a means of providing risk-cover conducted in line with the principles of Islam. To understand the mechanics of takaful and its documentation, it is critical to bear in mind the following:

• the concept of takaful is rooted in Sharia (Islamic law),

• the essence of takaful is risk sharing between participants (policyholders) and not risk transfer to the takaful operator (insurance company), and

• the risk remains at all times with the fund into which all contributions are paid by the participants and from which claim payments are made to participants as and when necessary (the Participants Solidarity Fund).

• Tabaru ': Arabic word which means “donation” or “voluntary and gratuitous contribution”.