E-2 AWARENESS & COMPARISON BETWEEN TAKAFUL & INSURANCE

Abstract

Takaful, is the most prevailed system of adjustment of modern banking with the Islamic banking. We create a mutual system, based on cooperation of Muslims with each other to cater the loss of anyone person. It’s the most authentic system devised to enable Islamic transactions within Muslims. The Modern world, not only brought us the gifts like globalization and capitalism, but also provided us with the high-leveled problematic, Riba. Riba has been all over the place, may it be anyone’s buying and selling for normal purposes, business, food, health, security, and etcetera. There has now developed a scenario in which everyone finds himself caught. In such an Interest based system, the Muslim was provided much hard time than any other civilization. It is so because of the strong religious prohibitions about Interest in Islam. The Ulemas, Scholars, then had to devise a method to ‘adjust’ this system into the modern era. It was also important because everything was encapsulated by the capitalist economy so much, that the escape from it was not possible. We therefore required a strong alternative to enable our existence in the world and flourish. It was then seen that, Islam pays an important light upon helping each other in different aspects of the society. It is, so that the society progress and there would be a harmony in the society. Not only has the society progressed but also that the society would have peace and brotherhood among each other. Every person would be loyal and keen about his brothers’ problems and tribulations. This idea became the basis of the Islamic Banking in the Modern Era, and an upholding effort to sustain in the present world with the modern economy.