Takaful means a commitment to help each other through contribution in the form of tabarru' without any expected and quick return.
In Islamic traditions, the format is to help needy children or orphans to school, to cure the sick, to celebrate family wedding, and to settle funeral of the death, etc.
Takaful later on was absorbed as one financial instrument (called as TAKMIN or TADHAAMUN) that is organized in a modern way just like insu-rance with more number of participants who can give more contributions.
Takaful transaction or insurance takaful that serves low income clients is presently known as MICRO TAKAFUL.
Various socio-economic problems severely impede these families from getting out of poverty. They remain poor and vulnerable, which is mainly due to lack of mechanism to anticipateTakmin Working Group is a group of initiators who have commitment to develop micro takaful in Indonesia. Its members consist of
experts in Islamic insurance, micro finance and accounting. Takmin Working Group at first worked with PT. Syarikat Takaful Indonesia in developing and marketing the products. This approach, in the world's micro insurance practice is known as institutional approach or "Partner Agent Model"
Micro takaful has proven to provide "win-win-win" solutions to the followings :
- Low income households; by providing them insurance protection that they never experienced before
- Micro Finance Institutions (MFIs) as the Group's partner can offer better services to their clients with lower risks
- Insurance companies are able to tap new market niche (through MFIs) that was previously difficult to approach