What is an Islamic insurance (Takaful) in Canada)
In Canada, Islamic insurance (Takaful) is a faith-aligned form of insurance built on risk pooling rather than selling risk for interest; it’s a Shariah-compliant, cooperative risk-sharing system in which participants donate contributions into a segregated Participants’ Risk Fund (PRF) that pays claims.
In Canada, Takaful makes sure that money flows and contracts are arranged to avoid riba (interest), gharar (excessive uncertainty), and maysir (speculation); investments are screened so the pool’s assets don’t earn or pay interest, and any temporary deficit is covered by an interest-free loan (qard hasan), later repaid from future surplus.
Operationally, Canadian takaful would mirror familiar products but with cooperative mechanics; auto coverage would include mandatory liability plus optional collision and comprehensive, with claims paid from the participants’ risk fund.
In Canada, property islamic insurance would span homeowners, condo, renters, and small-business risks; catastrophe exposure could be shared via retakaful (the reinsurance analogue); Canadian family takaful can take a term-style form (pure protection) or savings-linked variants structured through participant and shareholder funds rather than interest-bearing accounts.
Which Islamic insurance companies and cooperatives make takaful available in Canada ?
Here’s a list by province of the known Islamic / Takaful or Shariah-compliant insurance / cooperative insurance initiatives in Canada, based on currently available information:
Provincial Breakdown of Takaful providers in Canada
- Ontario
‣ Ethical Insurance (by CHES Special Risk) — Ontario’s first Shariah-compliant insurance provider, offering commercial property, liability, construction risk products.
‣ Ansar Co-operative Housing Corporation — Offers Takaful-style home & auto insurance in cooperation with Co-operators group. Ansar Housing
‣ GetTakaful — appears available across multiple provinces but operations / visibility are from Ontario. GetTakaful - Quebec
‣ Ansar Co-operative Housing Corporation — The same cooperative / Takaful program is available in Quebec (Montreal) via the Ansar Housing Co-op. - Alberta / British Columbia / Other Provinces
‣ As of current information, there are no formally certified Shariah-compliant life insurance or full Takaful life products specific to these provinces. Term life insurance is available, but not under official Takaful status.
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