Islamic Insurance, also known as Takaful, is a cooperative system of insurance that complies with Islamic law, or Sharia. Unlike conventional insurance, which involves risk transfer and profit-making, Takaful is based on mutual assistance and shared responsibility among participants. Members contribute to a common fund, which is used to support those in need, promoting solidarity and community welfare. In Takaful, the contributions are considered donations rather than premiums, and any surplus funds are typically distributed among participants. This system emphasizes ethical investments and prohibits activities related to Gharar (excessive uncertainty) and Riba (interest), aligning financial practices with Islamic principles.