What Are the Different Types of Takaful?

What Is Takaful?

Takaful is an Islamic insurance concept that is Shariah-compliant and based on the principles of Ta’awun (mutual assistance) and Tabarru (contribution). Takaful involves a group of participants who contribute a certain amount (Tabarru) and subscribe to a takaful plan. The participants of this plan offer mutual assistance to one another when the need arises. As Takaful is based on Islamic laws, it is free from the Haram (impermissible) elements , such as Al-gharar (uncertainty), Al-maisir (gambling) and Riba (interest).

The contributions from the participants are collected into a pool, which is managed by a Takaful operator. If any participant suffers losses or damages, the Takaful operator will disburse financial assistance from the funds accordingly. Any surplus amount (at the end of the financial year) that remains after assisting the participants (through payment of claims) will be distributed amongst the eligible participants. Takaful not only offers protection but also acts as a mutual assistance platform to help among the participants.

Types of Takaful

There are two main types of Takaful –

  • General Takaful
  • Family Takaful

General Takaful Plans:

General Takaful offers protection and financial coverage for personal and business assets. You can get financial aid for the loss or damage to your assets that may arise from fire, accidents, natural disasters and more. Under general takaful plan, you can opt for fire takaful, motor takaful, general takaful for property and more.

With a general takaful for property plan, you can protect your home and its belongings from loss or damage that may occur from floods, fires, theft, etc.

Motor takaful offers financial coverage against loss or damage to your vehicle due to theft, accidental fire, or accident. When you contribute to a motor takaful plan, you can get compensation in the event of accidental death, bodily injuries, or permanent total disablement. You can opt for an individual protection plan or go for a group coverage plan as well.

Family Takaful Plans:

With significant increase in healthcare, education, and livelihood costs, getting access to private hospitals or higher education for kids can feel challenging. When you contribute to a family takaful plan, you and your family can get access to proper healthcare, education, retirement, and more benefits.

With a Family Takaful plan, you can get a protection and a long-term savings plan. This plan also offers various benefits, such as death benefits, accidental benefits, repatriation benefits, to the participants and their families.

With an investment-linked family takaful plan, you can earn better investment returns on your contribution. This plan also offers financial coverage and benefits for you and your dependents.

With a medical and health Takaful plan, you can get a cover for the cost of private medical treatments, such as hospitalization or surgery.


When you contribute to a family takaful plan, the overall financial security of all the participants in the funds is taken care of. With a general takaful plan, you can secure your valuable assets or foolproof your business from loss or damage.