Models of Mudharabah-based Islamic Insurance (Takaful) in Terms of Operational and Jurisprudential Mechanisms

Takaful is an Islamic insurance concept which is grounded in Islamic transactions,observing the rules and regulations of Islamic law. Like the traditional Insurance companies, Takaful companies and institutions are designed to cover future possible damages and threats. In Addition, takaful plan contributors are participated in their benefit from profitable investments and activities. Mudharabah-based family takaful and mudharabah-based public takaful are models of takaful that have been explained in this paper.Although these models have been designed on the basis of certain contracts such as mudharabah, hiba (gifting) qardh (benevolent loan) and wikalah (agency), given the specific objectives that these companies follow, takaful models are mixed contracts that dont conform to anyone of these contracts specifically.Jurisprudential analysis of these two models presented in this study benefiting from content analysis research method has confirmed their accuracy. It seems that in addition to materializing insurance companie's goals, and in view of takaful contributors taking benefit from the surplus profit obtained, takaful models are more compatible with Islamic principles and justice.