Insurance plays a positive role in economic develoment, but some of its traditional products are inhibiting in some cultural settings. This book explains the development of a hybrid model. Takaful (which means 'cooperative') is intended to deal with three prohibited or haram practices under Islam: the payment of interest (riba), the existence of uncertainty in a transaction (gharar), and gambling (maysir). The primary intent of this relatively recent entry to world insurance markets is to provide a core service to Muslims and others who have religious or ethical objections to conventional...