As opposed to takaful, conventional insurance is based on principles of mutual cooperation, common welfare and general good of the society.

Question

Quizplus · Accepted Answer

Conventional insurance operates on a risk transfer mechanism, where the risk is transferred from the insured to the insurer for a premium, whereas takaful is based on mutual cooperation, common welfare, and shared responsibility principles.

As Opposed to Takaful, Conventional Insurance Is Based on Principles