What is “Tabarru'”?

This article is part of a helpful series explaining Takaful terms.

There are many different terms used to describe aspects of Takaful. Today, we’ll focus on the term Tabarru’ so that you understand what it means and how it relates to our EZTakaful products.

Tabarru’ is an Arabic word that describes a voluntary donation or gift which is given by someone to meet the requirement in Islam to provide mutual help to others.

The history of Tabarru’

Tabarru’ represents the ancient shared responsibility among members of a community to give financial help to those who have experienced a misfortune or faced difficulties. The act of Tabarru’ has long been considered a symbol of piety and it is among the most encouraged practices in Islam.

Tabarru’ has been incorporated into Takaful in an important way.

In accordance with Shariah principles, Takaful members agree to give a pre-determined proportion of their Takaful contribution as Tabarru’ to be used for mutual help should any of their fellow members suffer a loss that is covered by the Takaful plan. This concept eliminates the element of gharar from the Takaful contract.

What does Tabarru’ mean for you as an EZTakaful Member?

Rest assured that the EZTakaful products are compliant with Tabarru’. In fact, our enrolment forms even say: “I/We agree to participate in this scheme based on the principle of Takaful and agree to pay contribution on the basis of Tabarru’ (donation) to be used to help other participants in time of misfortune, and I/We are entitled to receive protection from Takaful in accordance to this contract.”

Now that you know more about Tabarru’, you can feel confident when choosing an EZTakaful plan to cover your family’s needs that it’s Shariah compliant!

Learn more about EZTakaful’s plans.

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