ABSTRACT
Takaful or Islamic Insurance is a growing and fast developing industry. Islamic jurists resolved that the system of insurance, which falls within the confines of Islamic framework, should be founded on the concept of al-Takaful. Thus, the main reason behind the introduction and development of takaful is to offer an Islamic and Shariah compliant alternative to conventional insurance. An Islamic insurance transacting is a policy of mutual co-operation, solidarity and brotherhood against unpredicted risk or catastrophes, in which the parties involved are expected to contribute genuinely. It is designed to provide protection and indemnity to both individuals and corporate bodies against loss or hazards to their selves or properties. The nature of the principles of takaful is fundamentally different from the principles of conventional insurance in many ways. It has been observed that takaful is still in the development stage but in some countries it has made significant progress. Despite the developments in the field of takaful, there is still room for improvement and also necessary changes need to be made in order to make takaful more beneficial to the Islamic world and not only for the present century but also for the centuries ahead. This project paper endeavours to explore the opportunities and challenges lies ahead in the progress and development of takaful in the years ahead.
