---
title: "What is Tabarru? | IslamicOpenFinance™"
description: "The donation portion of a takaful contribution, paid into the risk fund to meet claims as mutual help."
url: https://islamicopenfinance.com/glossary/tabarru/
lang: en-GB
source: "IslamicOpenFinance"
---

[Glossary](https://islamicopenfinance.com/glossary/) / [Takaful](https://islamicopenfinance.com/glossary/#takaful)

Takaful

# Tabarru

The donation portion of a takaful contribution, paid into the risk fund to meet claims as mutual help.

Tabarru is the amount of a takaful participant's contribution paid to fulfil the obligation of mutual help and used to pay claims submitted by eligible claimants, according to IFSB-29. Framing the payment as a donation, rather than a price paid for cover, is what distinguishes takaful from a conventional insurance sale. The tabarru portion goes to the participants' risk fund, separately from any investment portion.

## Sources

- [IFSB-29 Conduct of Business Supervision for Takaful Undertakings, 2023: Definitions, Tabarru'](https://www.ifsb.org/wp-content/uploads/2023/12/IFSB-29-Conduct-of-Business-Supervision-for-Takaful-Undertakings.pdf)

This entry explains a term; it is not a Shariah ruling. Approving a product is for each institution's own Shariah board and regulator.

## Related terms

[**Takaful** Mutual cover: participants contribute to a common fund, as donations, to help one another against specified losses.](https://islamicopenfinance.com/glossary/takaful/) [**Participants' risk fund** The pool of donated contributions from which takaful claims are paid, owned collectively by participants and managed by the operator.](https://islamicopenfinance.com/glossary/participants-risk-fund/) [**Participants' investment fund** In family takaful, the fund holding participants' savings and investment contributions, owned individually by each participant.](https://islamicopenfinance.com/glossary/participants-investment-fund/) [**Gharar** Excessive uncertainty in a contract, about the object, price, quantity or delivery, which can make the contract invalid.](https://islamicopenfinance.com/glossary/gharar/)

**Takaful**

1. [Takaful](https://islamicopenfinance.com/glossary/takaful/)
2. [Participants' risk fund](https://islamicopenfinance.com/glossary/participants-risk-fund/)
3. [Participants' investment fund](https://islamicopenfinance.com/glossary/participants-investment-fund/)
4. [Shareholders' fund (takaful)](https://islamicopenfinance.com/glossary/shareholders-fund/)
5. [Takaful operator](https://islamicopenfinance.com/glossary/takaful-operator/)
6. [Wakalah model (takaful)](https://islamicopenfinance.com/glossary/wakalah-model/)
7. [Takaful participant](https://islamicopenfinance.com/glossary/takaful-participant/)
8. [Underwriting surplus](https://islamicopenfinance.com/glossary/underwriting-surplus/)

[All 221 terms](https://islamicopenfinance.com/glossary/)