Takaful is the Shariah compliant mode to take coverage and it is alternate to conventional insurance. Takaful is based upon the principles of mutuality, whereby each participant makes a donation to a Takaful fund, named as Waqf Fund. In the event of his/her medical treatment, the participant receive the amount of his/her claim from this Waqf Fund. The Takaful operator does not reserve the right to take any amount from Waqf Fund, apart from the Wakala fee of managing Waqf fund. Takaful is free from Riba (Interest), Gharar (uncertainty) and Maysir (gambling) which are not allowed in Shariah. At the end of the each year, the Takaful operator determines the surplus/deficit from this Waqf fund, which may or may not be distributed to the Participants. In Takaful a Shariah’s Advisor is appointed who monitors the activities of the operations in order to ensure that it’s Shariah- compliant. All investments managed by the takaful operator are made in accordance to the Shariah law.