Islamic law restricts the role of the insurance company to merely an operator who is appointed to manage the portfolio and invest the insurance contribution for and on behalf of the participants.

Question

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In Islamic insurance, also known as Takaful, the insurance company acts as an operator managing the contributions (premiums) of the participants (policyholders) in a Sharia-compliant manner, investing them for the benefit of the participants and distributing the profits or surplus among them, rather than acting as a traditional insurer that assumes risks in exchange for premiums.

Islamic Law Restricts the Role of the Insurance Company to Merely