Sharia Insurance is an attempt to help each other (ta’awuni) and protect (takafuli) among participants through a collection of funds (tabarru’) that is managed in accordance with sharia principles to face certain risks. In accordance with sharia principles, sharia insurance must not include elements of:
- Gharar (uncertainty or unclarity),
- Maysir (gambling),
- Zulmu (abuse),
- Riswah (bribery),
- Illicit goods and immoral.
Further explanation on principles of sharia insurance can be found here.