Takaful Models

  • Adnan MalikEmail author
  • Karim Ullah


This chapter has focused on the different takaful models being practised around the globe. These models can be broadly divided into non-profit and for-profit. The non-profit category includes the tawuni (cooperative) model, in which the takaful operator does not get anything in return for providing its services. In for-profit models, the takaful operator can earn a fee or a profit share (or both) in return for the services it provides. For-profit models are based on mudarabah and wakalah models. In the mudarabah model, the operator takes a share of the profit, while in the wakalah model the operator takes a fixed fee and gets nothing from the surplus. The wakalah–mudarabah waqf model is a refined for-profit model based on wakalah and is mainly practised in Pakistan. In this model, the takaful fund is declared as a waqf fund and the operator becomes the wakeel. The waqf fund compensates participants for their defined losses when an event that is covered occurs.


Mudarabah model Takaful models Tawuni model Wakalah model 

Copyright information

© The Author(s) 2019

Authors and Affiliations

  1. 1.Centre for Excellence in Islamic FinanceInstitute of Management SciencesPeshawarPakistan

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