The concept of buying and selling

Buyer / Seller \(\Longrightarrow\) Buy RM 1000

• The risk is borne by the insurance company.
• Company owned insurance premium.
• Supervised by government laws.
• Sharia compliance is not mandatory.

Contribution Concept

Contributor / Agent \(\Longrightarrow\) Contibute RM 1 000

• The risk is borne by the participants as a group.
• Donations belong to the Takaful Fund.
• Takaful operators only manage funds.
• Supervised by sharia law and the government.
• Sharia must be obeyed.