Takaful is a co-operative system of reimbursement in case of loss, paid to people and companies concerned about hazards, compensated out of a fund to which they agree to donate small regular contributions managed on behalf by a Takaful Operator. It is defined as an Islamic insurance concept which is grounded in Islamic Fiqh Muamalat (Islamic Commercial Law), observing the Principles of Shari'ah. This concept has been practiced in various forms since 622 CE.
Muslim jurists acknowledge that the basis of shared responsibility (in the system of Aquila as practiced between people of Mecca and Medina) laid the foundation of mutual insurance.