What do you mean by Takaful Insurance? Explain the different models of Takaful insurance.

Takaful Insurance - It is specific to Islamic Community. In this Islamic Insurance, members contribute money into a pool system in order to guarantee each other against loss or damage. It is based on Sharia, Islamic religious law. The Takaful compliant model under the Shari'ah Laws does not allow the following 3 things in insurance/ investment activities. (a) Uncertainty and speculation ('Gharar') (b) Gambling ('Maysir') (c) In the case of investment or fund management, interest or usury ('Riba') The different models of Takaful Insurance are: Mudharabah model (profit-sharing): the manager (shareholders) are sharing Profit and Losses with the policyholders; used initially in Far East. Tabarru-based: "donations" (Tabarru) i.e., premiums are accumulated into a fund to meet members' losses. Members are not allowed to take back any contributions or profits from investments. A combination of Tabarru and Mudharabah: Bahrain, UAE and Middle East countries. Wakala model: agency fee, received up front from the contributions and transferred to shareholders fund. Al Waqf-based model: Waqf is a distinct entity and legal person. According to one critic, "except for names and terms, the essence" of both Al Waqf takaful and conventional insurance is the same, and as a consequence this structure "has come under a lot of criticism from Shari'ah scholars". This model is mainly used in Pakistan and South Africa.