Comparison of Insurance and Takaful

The basic concept of Takaful is the sharing of risk among participants

• TRUE

• FALSE

Conventional insurance is a risk transfer mechanism

• TRUE

• FALSE

Conventional insurance is free from elements of uncertainty (Gharar)

• TRUE

• FALSE

Takaful is free from elements of uncertainty (Gharar)

• TRUE

• FALSE

Takaful is free from elements of gambling (Maisir)

• TRUE

• FALSE

Under conventional insurance, the insured pays a premium for an expectation of gains

• TRUE

• FALSE

Takaful is free from the elements of interest (Riba)

• TRUE

• FALSE

Under conventional insurance, the insurer must take into consideration on Shariah principle

• TRUE

• FALSE

Tabarru’ is a sincere donation granted by one party by not requesting exchanges/consideration from the other party.

• True

• False

An insured will undergo a personal financial loss as a result of loss. Hence, under the principle of ________________, there must a financial relatonship or ownership with the subject matters of insurance.

• Insurable interest

• Subrogation

• Utmost Good Faith

• Indemnity