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Cooperative Solidarity Fund


With AL BARAKAH, we get protected the Islamic way

Cooperative Solidarity Fund (CSF)

Ta’awuni Takaful Fund

Life & Wealth

Man naturally loves his life and wealth and takes care of them. This is confirmed by the Holy Qur'an, where God says: "You love wealth amply" (Al-Fajr, 89:20). Security is a natural desire, which Man seeks by different means. The love for his life and wealth motivates him to avoid dangers by all possible means and measures. If these perils come upon him, they trouble him and cost him enormous losses and worries. Insurance is one of the means people have used for ages to deal with the consequences of damages, risks, and disasters which befall them in order to alleviate their financial impact. Insurance has developed and today it covers mostly all kinds of assets and economic activities.

Takaful (Islamic Insurance) has been established and is considered a legitimate alternative to Conventional Insurance. Al Barakah, being an Islamic Financial Cooperative, has found it necessary to develop a scheme to provide debt/credit coverage in the form of Takaful services to its members in a Shari’ah-compliant manner.

1. What is Takaful?

The word Takaful is derived from the Arabic word kafala, which means to guarantee, to help, to take care of one another’s needs. Takaful is based on the principle of solidarity, mutual help, brotherhood and cooperation among members of the community.

2. What is Takaful Ta’awuni?

Takaful Ta’awuni is a Shari’ah-compliant system of risk protection and is an alternative to conventional insurance. It is a system which comprises of a group of individuals (in case of Al-Barakah - the Shareholders/Members) who contribute collectively to a Common Fund (Cooperative Solidarity Fund / Ta’awuni Takaful Fund) in order to share the loss or damage that may befall upon any member /shareholder of  Al Barakah MCSL.

3. Is Takaful Ta’awuni against Tawakkul - Total dependence upon Allah (PBTH)?

No human action can change the destiny/Qadr as per the will of Allah (PBTH), whether one has Takaful/Tamin/Tadamoun or not, will not change future events. But we are strongly advised to be prudent and take precautionary measures first and then fully trust and depend upon AIIah (PBTH). Prophet Muhammad (PBUH) has said ‘‘Tie your camel first, then put your trust in Allah (PBTH)’’ (Tirmithi).

4. What is the Cooperative Solidarity Fund (CSF)?

The Cooperative Solidarity Fund is a system of solidarity, mutual protection and assistance based on two principles of cooperation and contribution, where the risk is shared collectively and voluntarily by the group. It is a pact among members of Al Barakah who agree to jointly guarantee (Takaful) themselves against loss or financial consequences of damage to any one of them as defined in the pact.

5. Why do we have the Cooperative Solidarity Fund?

The Cooperative Solidarity Fund is one type of solidarity and cooperation to do righteous deeds (A’maal Swaleha) which Islam calls for in all spheres of life.

It provides Al Barakah MCSL members with an opportunity to practice the virtues of Islam and help others in times of need. It is an application of Allah’s word:

  1. ‘‘Cooperate with all in what is good and pious and do not cooperate in what is sinful and wicked’’ (Q- 5: 2)
  2. The saying of Prophet Muhammad (PBUH) “The believers in their mutual affection, mercy and sympathy are like the body, when one of its organs suffers, the rest of the body follows it by sleeplessness and fever” (Muslim).
  3. Prophet (PBUH) said ‘‘whosoever removes a worldly hardship from a believer, Allah(PBTH) will remove from him one of the hardships on the Day of Judgment’’ (Muslim) .

For more information on our CSR Fund, kindly contact us.