.:definition of Takaful:.

takaful is an infinitive noun which is derived from the root word kalf which means guarantee or responsibility.

meanwhile, takaful whose chief characteristic is al-musyarakah which mean sharing. 

thus, the word takaful means shared responsibility, shared guarantee, collective assurance and mutual undertaking. 

technically, takaful from the economic point of view means, a mutual guarantee or assurance based on the principle of al-qard (contract) provided by a group of people living in the same society against a defined risk or catastrophe befalling one's life, property or any form of valuable thing. 

hence, a takaful is better known as co-operative with mutual agreement.