How Does Takaful Work

Does takaful work the same like insurance?

In conventional insurance, everybody does not share risk properly and they invest premiums (put into the insurance) into impure investments. Different from conventional insurance, takaful policies do not deal with sale or exchange that includes the objectionable aspects of gharar (uncertainty), maysir (gambling), and riba (interest). Takaful-branded insurance has been built on Islamic laws.