Takaful, is a form of Insurance managed in a Shari’a compliant way. The risk is shared and not transferred as in conventional insurance. Takaful consists of Mutual Guarantee and Mutual Assistance where the participant’s Takaful fund bears the risk for each participant. Takaful is risk sharing, not transferring of risks it does not cover risks not permissible by Shari’a. The contributions collected from the participants are considered as donations and they constitute the Takaful Fund from which all claims and expenses for managing the fund are reimbursed. At the end of the financial year, after all expenses are deducted, the surplus will belong to the Participant (policyholders). The distribution of the surplus is carried out in accordance with principles approved by the Shari’a Board and is applicable to people who contribute.