# Ναυτιλιακά Θέματα - Shipping Subjects > Shipping Forum > Shipping Insurance and P & I clubs >  Local Diversifications

## Michael

Did you think that you know everything about insurance? If yes, then check this;

*takaful:* the Islamic version of insurance. The buying of conventional insurance is largely forbidden under _Shariah_ law: some property insurance is not clearly outlawed, but the concept of life assurance is deemed to be “against providence”. _Takaful_ operates on a similar principle to a mutual guarantee or indemnification fund, with a number of members sharing risk on a co-operative basis. The greatest difference between it and conventional insurance is that _takaful_ operators are prohibited from investing in certain economic ventures, most notably gambling and the production of alcohol or the manufacture of pork products. The system works as a company run by and for policyholders, with profits distributed to members, much in the way a mutual would operate. Claims are treated as charitable donations from the policyholders’ fund to the claimants. The company receives a fee from the policyholders for administering the fund and all share in the surplus. 
[from a glossary of insurance terms]

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