Takaful (Islamic insurance) premium: a suggested regulatory framework

The sayings of the Holy Profit provide the framework for the development of Takaful. For example, the command to “Help you one another in righteousness and piety,” demands that mankind work together and form mutually beneficial agreements, such as Takaful. The Holy Prophet also said, “Abu Hurairah reported that a man demanded of the holy Prophet (s.a.w.) for a repayment of a debt ... and verily the best of you is he who is the best of you in repayment of loan.” Takaful is a contract between two parties, and therefore its obligations must be fulfilled. Evidence of the importance of Takaful and adherence to contracts is abundant in the Qur'an.