IslamicFinance.de

There are basically two models of Islamic insurance that is, al-Mudarabah model and the wakalah model though most jurists prefer the first one. This element enables members to fulfill their obligations of mutual help and guaranteeing one another. It should, however, be noted that the element of profit sharing among participants from the proceeds of the Islamic insurance operations is only made after fulfilling the mutual obligation of assisting one another and this calls for proper asset keeping and sufficient protection of funds against over exposure to loss. Where the insured is still alive on the maturing of the policy he/she is entitled to the whole amount of the premiums, a share of the profit made over the premiums, a bonus and dividends according to the company policy.