Insurance - are your assets covered with riba money?
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Insurance - are your assets covered with riba money?

In today’s climate of risks, whether it be crime, motor accidents or natural events like storms, we

need to have some protection to cover our asssets. As Muslims we are commanded to “tie your

camel”- so we need to secure our assets, but in a way that is in accordance with Islam. A Muslim

also does not want to end up in debt because of these type of events and borrow money or be

humiliated, as our beloved Prophet SAW has said poverty is close to Kufr. But how do we protect

our assets financially when all insurers have income from riba money in the funds they use to pay

your claims, and the contract of insurance used my conventional insurers is also haraam because

it is a buy sell contract that contains uncertainty. The Islamic solution is called Takaful and

surprisingly has been in South Africa for over 12 years now. Takaful eliminates riba and the

contract is done in accordance with Shariah- which makes it a mutual insurance where funds are

pooled to help each other instead of just benefiting an individual or shareholders. Therefore

Takaful is the only insurance solution acceptable in Islam.

What is Takaful?

Takaful is simply the pooling of funds, by mutual consent for mutual benefit. Takaful in Arabic

means mutual guarantee. As we all know, and as an Ummah this is vital- from unity comes

strength! So anything where we mutually agree to assist one another for a defined purpose, would

be Takaful. A normal Waqf would be for the benefit of everyone, but due to limited resources, the

Takaful Waqf is only for it’s members who contribute to the Waqf fund.

A simple example would be if there are a few people who own town houses or flats and want to

cover this against certain risks like fire or storm damage, they can get together and form a Body

corporate Takaful product. First all the members agree what the Takaful fund will pay for, events

like accidental damage, fire, storm or wind damage caused to any of our properties that form part

of the body corporate. We also have rules and exclusions as the body corporate cannot pay for

everything, like maybe some ones garden was damaged in a storm- the Takaful fund will not pay

for this.

This may sound like much, but the covers are exactly the same as you would have with

normal insurers in most cases. So if you covered your car comprehensively with Ammanah or a

normal insurer- the covers would be the same- you would be covered for accidents, fire, theft and

windscreen damage on both.

You would not notice much difference in the event of a claim, as the process is exactly the

same if you had conventional insurance.

In the event of a claim, it is also as easy and simple as usuing your normal inusrer because

Takaful is handled via the Zurich inusrance calim process as well.

Many clients assume moving to Takaful would be a long process, but nothing could be

further from the truth. In fact moving you to the Shariah approved insurance products is

much easier and quicker than you think. Many clients prefer for us to quote on their existing

insurance policies and compare them, but Ammanah IFS likes to look at your individual risks and

challenges that you face in your business and provide a specific solution that suits your needs.

Ammanah IFS was setup with a single objective: provide riba free Shariah insurance

products that provide beneficial covers for the Muslim community with excellent service.

AlhamduliLLAH Ammanah IFS provides only Shariah approved products. We do not sell

any riba products whatsoever. We have a very experienced team of members, some of whom

have been a part of Takaful since it’s inception in South Africa .

Ammanah provides short term insurance for personal and commercial Takaful needs. The

products offered are approved by a very prominent panel of local Ulema. The products

offered are administered by Takaful Africa, which is backed by one of the worlds largest

insurers, Zurich.

To free yourself from riba insurance, simply contact our Johannesburg or Durban KZN

office and we will assist you.

Ammanah Head office: Ammanah Kzn:

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